Initial Cost, $ Uniform annual benefit, $ per year A $770.00 420.00 Useful life, years 2 B 1406.30 830.00 4 C 2563.30 1600.00 8 D 0 0 0 The analysis period is 8 years. At the end of 2, 4, and 6 years, Alt. A will have an identical replacement. Alternative B will have a single identical replacement at the end of 4 years. Choose the best alternative using incremental ROR analysis with MARR = 7%.

Initial Cost, $ Uniform annual benefit, $ per year A $770.00 420.00 Useful life, years 2 B 1406.30 830.00 4 C 2563.30 1600.00 8 D 0 0 0 The analysis period is 8 years. At the end of 2, 4, and 6 years, Alt. A will have an identical replacement. Alternative B will have a single identical replacement at the end of 4 years. Choose the best alternative using incremental ROR analysis with MARR = 7%.

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

9. A machine part can be exhausted either from aluminum or steel. There is an order of 8,000 units.Steel costs 3.80Php/kg, while aluminum cost 8.70Php/kg. If steel is used, the steel per unit weighs110g and 30g for aluminum. In production, steel is 50 units/hr and 80units/hr with an aid of a toolcosting 640Php, which will be useless after the 8,000 units are finished. The cost of the machineoperator is 10.80Php/hr. if all other costs are identical, which material is more economical?
Q15. For the cash flows shown, determine the incremental cash flow between machines B and A (a) in year 0, (b) in year 3, and (c) in year 6. Machine First Cost, $ A B -13,000 -25,000 AOC, $ per Year -1,300-400 Life, Years Salvage Value, $ 5,000 6,000 3 6 a) The incremental cash flow between machines B and A in year 0 is $ . b) The incremental cash flow between machines B and A in year 3 is $. c) The incremental cash flow between machines B and A in year 6 is $ .
Graph on right, shows AW of costs versus number of service years of project X. Based on the graph, economic service life of the project is Larger costs Total AW of costs AW of AOC Capital recovery 3.5 10 Years О 3.5 years O 10 years O 1 year О З уears AW of costs, S/year
PLABOR МIC $7.00 -S $5.25 $4.50 MVP QLABOR 1000 1500
Please answer correct calculation asap plz correct option pls Don't answer by pen paper plz
Q5 solution needed
An electronics firm is planning to manufacture a new handheld gaming device for the preteen market. The data have been estimated for the product. Assuming a negligible market (salvage) value for the equipment at the end of five years, determine the breakeven annual sales volume for this product.
Fill in the missing values: QP TC TB Tprofit MC MB Mprofit ATC AFC AVC 16 500-50 ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ 16 132 16 16 156 16 186 0 5 6 7 8 16 9 16 272 10 16 332 16 224
Time left 1:24:36 FW analysis comparison of alternatives is different from PW analysis. For example: Must compare alternatives for equal service. Select one: O a. False O b. True on Machines that have the following costs are under consideration for a robɔtized welding process. Using an interest rate of 10% per year, determine which alternative should be selected on the basis of a present worth analysis. Machine X Machine Y First Cost. S -250,000 -430.000 AOC. S per year -60.000 -40,000 Salvage Value. S 70,000 95.000 Life vears 3 Oa Select Machine X b. Select Machine Y O b. Select Machine Y Approximately, what is the value of (P) if A=380, n=11 years, and i= 10% per year? a. 2049 O b. 2468 C. 3308 O d. 2962
10 4 points In which of the expressions below does q represent a breakeven point? O q(p - AVC) = TVC O a(p- AVC) = TFC a (p - AVC) = AFC %3D %3D a (p – AFC) =TC Previous
True/False AVC can fall even when MC is rising
A company is setting up a project to buld housing Units in which the investment volume is estimated at ane million dollars to build (100 houses), the price of the house is (20,000) dollars, to be paid in equal installiments for a periad of (4 years), the annual Costs are estimated at (50) thousand dollars. Calculate the Simple rate of returm, the payoack period and the internal rate of retum for the project, bearing in mind that the lowest discount hiahest is (12'%). Will the project be accepted or rejected. rate is (8b) and the