White Oaks Properties builds strip shopping centers and small malls. The company plans to replace its refrigeration, cooking, HVAC, and other equipment with newer models in the entire center built 9 years ago. The original purchase price of the equipment was $778,000 nine years ago and the operating cost has averaged $240,000 per year. Determine the equivalent annual cost of the installed equipment, if the company can now sell it for $172,000. The company's MARR is 25% per year. The equivalent annual cost of the installed equipment is $- 404512.69

White Oaks Properties builds strip shopping centers and small malls. The company plans to replace its refrigeration, cooking, HVAC, and other equipment with newer models in the entire center built 9 years ago. The original purchase price of the equipment was $778,000 nine years ago and the operating cost has averaged $240,000 per year. Determine the equivalent annual cost of the installed equipment, if the company can now sell it for $172,000. The company's MARR is 25% per year. The equivalent annual cost of the installed equipment is $- 404512.69

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Determine the value of the given gradient factor. (P/G, 14.5%, 17)
The first-year maintenance cost for a new Machine is estimated to be P5000, and it increases at a uniform rate of 8% per year. Using an 10% interest rate, calculate the present worth of cost of the first 10 years of maintenance.
Please show ALL the steps and required formulas and make sure the answer is CORRECT! thank you for your help
Please answer question 5 with details on how to do it. Thank you.
what is the EUAC corresponding to an overhaul cost of 4000 at year 3 for a machine with 7 years of useful life? use i=8%
Please solve the problem and draw a diagram for the problem, Make sure you post pictures of your work instead of writing it. Please! Thank you for your help.
ABC enterprise demands 3,400 pieces of metal sheets manufactured by XYZ Metals. With the manual processing, the cutting cost is P 30.00 per unit. An automatic cutting machine was offered to XYZ Metals worth P 300,000, which will reduce the cutting cost by 25%. Without considering other costs, if the machine is bought, how long will XYZ Metals be able to regain the cost?
If prices are calculated with a 35% mark-up based on cost, what is the percent that those prices should be marked down to get back to their original cost? Support the answer with appropriate computations.
A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3910 per year, paid at the beginning of each year, in which case maintenance is provied. Alternatively, she can buy a used van for $5407 and pay for maintenance herself. She expects to keep the van for three years at which time she could sell it for $1045. What is the most she should pay for uniform annual maintenance to make it worthwhile to buy the van instead of leasing it, if her MARR is 20%? Enter your answer as follow: 123456
Evaluate to total present worth of all the cash-flow of machine ABC for an interest rate of 10% per year. Relevant costs are as follows investment cost = $18,000 useful life = 20 years Market value = $5000 Annual operating expenses =$250 Overhead cost end of the 7th year = $500 Overhead cost end of the 14th year = $800
Matchim's Paving is investing in a new wider paving machine that will cost $131000, which is expected to return $22500 per year of the next 12 years. At the end of the 12 years the paving machine is expected to have a salvage value of $20000. Assuming the cash flow is at the end of the year, what is the Pay Back Period, in years, for the project?
Note: the answer should be typed.