Two processes can be used for producing a polymer that reduces friction loss in engines. Process T will have a first cost of $600,000, an operating cost of $84,000 per year, and a salvage value of $80,000 after its 2-year life. Process W will have a first cost of $1,320,000, an operating cost of $25,000 per year, and a $120,000 salvage value after its 4-year life. Process W will also require updating at the end of year 2 at a cost of $90,000. Which process should be selected on the basis of a present worth analysis at a MARR of 12% per year? The present worth of process T is $- [678,189 The process selected on the basis of the present worth analysis is process T and the present worth of process W is $- 1,391,419

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A professional photographer who specializes in wedding-related activities paid $49,000 for equipment that will have a $2000 salvage value after 5 years. He estimates that his costs associated with each event amount to $65 per day. If he charges $300 per day for his services, how many days per year must he be employed in order to break even at an interest rate of 8% per year? The number of days required for break even is determined to be per year.

Jensen Systems purchases several parts for the instruments it makes via a fixed-price contract of $155,000 per year from a local supplier. The new president of Jensen wants to make the parts inhouse through the purchase of equipment that will have a first cost of $240,000 with an estimated salvage value of $30,000 after 5 years. The AOC is difficult to estimate, but company engineers have made optimistic, most likely, and pessimistic estimates of $70,000, $85,000, and $120,000 per year, respectively. Determine if the company should purchase the equipment under any of the operating cost scenarios. The MARR is 20% per year.

33 8 01:57:08 Two processes can be used for producing a polymer that reduces friction loss in engines. Process T will have a first cost of $680,000, an operating cost of $92,000 per year, and a salvage value of $80,000 after its 2-year life. Process W will have a first cost of $1,120,000, an operating cost of $25,000 per year, and a $120,000 salvage value after its 4-year life. Process W will also require updating at the end of year 2 at a cost of $90,000. Which process should be selected on the basis of a present worth analysis at a MARR of 12% per year? The present worth of process T is $- 7 and the present worth of process W is $- The process selected on the basis of the present worth analysis is process (Click to select)

A rotational molding operation has fixed costs of $9,000 per year and variable costs of $48 per unit. If the process is automated via conveyor, its fixed cost will be $27,000 per year, but its variable cost will be only $10 per unit. Determine the number of units each year necessary for the two operations to break even.   The number of units each year necessary for the two operations to break even is determined to be

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A manufacturing company has the choice of two suppliers to buy a piece of equipment from to use in its process. Characteristics of these two suppliers and associated costs are tabulated below.  The equipment from supplier A costs more to buy and maintain, but it also has more revenue per unit sold.  Selling enough units will at some point make it worth the higher cost.  How many units per year must the company sell in order to justify using supplier A (i.e. what is the breakeven number of units to sell)?  Use an interest rate of 12% per year.   Supplier A Supplier B Initial cost  $4,000 $3,000 Sale price (revenue per unit) $4 $3 Transportation costs (per unit)  $0 $1.25 Annual maintenance cost $1,400 $1,100 Salvage value $800 $700 Useful life of the equipment (years) 5 4

Your Area Director wants to purchase new ergonomic office equipment for your staff. The total purchase price is quoted by Herman Miller to be $22,656. The main reason for the proposed purchase is the high rate of lost work days due to low back and wrist/hand issues. These are common problems associated with poor ergonomic position and repetition. You can sell the equipment in 8 years and have a salvage value of $4,619. It is estimated that the purchase of the new equipment will cut your lost work days by 61% and save you an estimated $11,812 per year in the costs associated with the lost work days. What is your EUAW for this proposed purchase at an interest rate of 6%? A. $7,354 B. $4,886 C. $8,631 D. $6,625

Two processes can be used for producing a polymer that reduces friction loss in engines. Process T will have a first cost of $660,000, an operating cost of $90,000 per year, and a salvage value of $80,000 after its 2-year life. Process W will have a first cost of $1,100,000, an operating cost of $25,000 per year, and a $120,000 salvage value after its 4-year life. Process W will also require updating at the end of year 2 at a cost of $90,000. Which process should be selected on the basis of a present worth analysis at a MARR of 12% per year? The present worth of process T is $- and the present worth of process W is $- The process selected on the basis of the present worth analysis is process (Click to select) ✓