Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Question
Chapter 9, Problem 36FE
To determine
Calculate the equivalent annual cost.
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Students have asked these similar questions
A corporation purchased a machine for $60,000 three years ago. It had an estimated life of 10 years and an estimated salvage value of $9.200. The current BV of this machine is
$29,000. If the current MVof the machine is $36,500 and the effective income tax rate is 22%, what is the after-tax investment value of the machine? Use the outsider viewpoint.
Choose the correct answer below.
A. $28,400
OB. $38.150
OC. $29,680
OD. $34,850
OE $36,500
A manufacturer purchased and installed a shrink-wrap machine 4 years ago at a cost of $4,000. A new machine is now needed, and one is available for $7,000 less a $1,000 trade-in allowance for the old machine. The market value of the old machine without trade-in on a new model is $500. Which of the four dollar values above is a sunk cost that is irrelevant in a pre-tax engineering economic analysis?
Group of answer choices
$7,000
$1,000
$4,000
$500
Flag question: Question 8
Two alternative machines will produce the same product, but one is capable of higher-quality work, which can be expected to return greater revenue. The following are relevant data. Determine which is the
better alternative, assuming repeatability and using SL depreciation, an income-tax rate of 30%, and an after-tax MARR of 10%.
Calculate the AW value for the Machine A.
Capital investment
Life
Terminal BV (and MV)
Annual receipts
Annual expenses
Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year.
AWA (10%) = $ (Round to the nearest dollar.)
Machine A
$22,000
11 years
$5,000
$152,000
$141,000
(...)
Machine B
$32,000
8 years
$500
$190,000
$173,000
Chapter 9 Solutions
Engineering Economy (17th Edition)
Ch. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4PCh. 9 - Prob. 5PCh. 9 - Prob. 6PCh. 9 - Prob. 7PCh. 9 - A city water and waste-water department has a...Ch. 9 - Prob. 9PCh. 9 - Prob. 10P
Ch. 9 - Prob. 11PCh. 9 - Prob. 12PCh. 9 - Use the PW method to select the better of the...Ch. 9 - Prob. 14PCh. 9 - Prob. 15PCh. 9 - Prob. 16PCh. 9 - Prob. 17PCh. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - Prob. 21PCh. 9 - Prob. 22PCh. 9 - Prob. 23PCh. 9 - Prob. 24PCh. 9 - Prob. 25PCh. 9 - Prob. 26PCh. 9 - Prob. 27SECh. 9 - Prob. 28SECh. 9 - Prob. 29CSCh. 9 - Prob. 30CSCh. 9 - Prob. 31CSCh. 9 - Prob. 32FECh. 9 - Prob. 33FECh. 9 - Prob. 34FECh. 9 - Prob. 35FECh. 9 - Prob. 36FE
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