Homework Answers
Suppose M & O costs = z
Let's perform an incremental cash flow analysis.
0 = -47,000 + (-z + 26,000)(P/A,12%,5) + 40,000(P/F,12%,5)
0 = -47,000 + (-z + 26,000)(3.6048) + 40,000(0.5674)
z = 19257.88
M & O cost for S = $-19,257.88
Add Answer to:
1. Alternative R has a first cost of $58,000, annual M&O costs of $26,000, and a...
Alternative R has a first cost of $82,000, annual M&O costs of $52,000, and a $20,000...
Alternative R has a first cost of $82,000, annual M&O costs of $52,000, and a $20,000 salvage value after 5 years. Alternative S has a first cost of $175,000 and a $70,000 salvage value after 5 years, but its annual M&O costs are not known. Determine the M&O costs for alternative S that would yield a required incremental rate of return of 24%. The M&O cost for alternative S is $_____ .
Alternative R has a first cost of $76,000, annual M&O costs of $54,000, and a $20,000...
Alternative R has a first cost of $76,000, annual M&O costs of $54,000, and a $20,000 salvage value after 5 years. Alternative S has a first cost of $175,000 and a $61,000 salvage value after 5 years, but its annual M&O costs are not known. Determine the M&O costs for alternative S that would yield a required incremental rate of return of 30%. The M&O cost for alternative S is____ $ .
A new machine costs $150,000, lasts 10 years, has an annual O&M cost of $50,000, and...
A new machine costs $150,000, lasts 10 years, has an annual O&M cost of $50,000, and has a salvage value of $15,000. If you want to have a 20% ROR, what should be the annual revenue from this machine?
I cant get alternative y Problem 14.030: Compare alternatives by calculating their capitalized cost Compare the alternatives below on the basis of their capitalized costs with adjustments made for...
I cant get alternative y
Problem 14.030: Compare alternatives by calculating their capitalized cost Compare the alternatives below on the basis of their capitalized costs with adjustments made for inflation. Use 3.2% per year. 10% per year and Alternative First cost,$ -19,000,000 13,500,000 -10,000 82,000 10 AOC, $per year25,000 Salvage value, $ Life, years 105,000 The capitalized cost for alternative X is s -19199107 The capitalized cost for alternative Y is $ 135762 。 Select alternative「-Y- O
Problem 14.030: Compare...
Consider the following two alternatives: Alternative 1 has a first cost of $325,000, an annual maintenance...
Consider the following two alternatives: Alternative 1 has a first cost of $325,000, an annual maintenance and operating cost of $20,575, and no salvage value. In addition, it requires two workers at a rate of $25/hour to output 5 units per hour Alternative 2 has an initial cost of $270.000, an annual maintenance and operating cost of $12.300, and a salvage value of $125,000. In order to produce 3 units in an hour, three workers are required a rate of...
Consider the following two alternatives: Alternative 1 has a first cost of $485,000, an annual maintenance and oper...
Consider the following two alternatives: Alternative 1 has a first cost of $485,000, an annual maintenance and operating cost of $20,000, and a salvage value of $125,000. In addition, it requires two workers at a rate of $25/hour to output 5 units per hour Alternative 2 has an initial cost of $325,000, an annual maintenance and operating cost of $13,500, and no salvage value. In order to produce 3 units in an hour three workers are required a rate of...
First Cost S100,000 $35,000 per year increase of $3,000 per year S5 $205 Benefits O&M Costs...
First Cost S100,000 $35,000 per year increase of $3,000 per year S5 $205 Benefits O&M Costs Salvage Value Useful Life ROR $45,000 in year 1; for each of the following years $15,000 8 years 10,000 $10,000 4 years 10 85% 14. The NPW of Alternative #1 (necessary to make a decision between the two alternative) is closest to a) $3,249 $1,930 ) $543 e) $2,227 8) $723 h) $431 )$3,860 15. The increase in O&M costs that would result in...
Given that i = 10% per year and the data below: Alternative Project A First Cost($)...
Given that i = 10% per year and the data below: Alternative Project A First Cost($) -50,000 Annual Cost ($/yr) -20,000 Salvage value ($) +10,000 Life (years) 12 The "Capital Recovery (CR)" for project A is equal to: **The answers presented below were calculated using the appropriate factors from interest tables including all their decimal places** CR=-$6,870 CR=-$26,870 CR=-$10,572 CR=-$7,806
Alternative X has a first cost of $20000, an operating cost of $9000 per year, and...
Alternative X has a first cost of $20000, an operating cost of $9000 per year, and a $5000 salvage value after 8 years. Alternative Y will cost $12,183 with an operating cost of $7,627 per year and a salvage value of $7,104 after 4 years. At an MARR of 0.12% per year, find the PW of machine Y?
2. Determine the net present value of alternative 2 1. Determine the net present value of...
2. Determine the net present value of alternative 2 1. Determine the net present value of alternative 1. Initial cash investment (net) Interstate Manufacturing is considering either replacing one of its old machines with a new machine or having the old machine overhauled, Information about the two alternatives follows. Management requires a 12% rate of return on its investments (PV of $1. FV of $1. PVA of $1. and FVA of $1) (Use appropriate factor(s) from the tables provided.) Initial...
I cant get alternative y
Problem 14.030: Compare alternatives by calculating their capitalized cost Compare the alternatives below on the basis of their capitalized costs with adjustments made for inflation. Use 3.2% per year. 10% per year and Alternative First cost,$ -19,000,000 13,500,000 -10,000 82,000 10 AOC, $per year25,000 Salvage value, $ Life, years 105,000 The capitalized cost for alternative X is s -19199107 The capitalized cost for alternative Y is $ 135762 。 Select alternative「-Y- O
Problem 14.030: Compare...
Consider the following two alternatives: Alternative 1 has a first cost of $325,000, an annual maintenance and operating cost of $20,575, and no salvage value. In addition, it requires two workers at a rate of $25/hour to output 5 units per hour Alternative 2 has an initial cost of $270.000, an annual maintenance and operating cost of $12.300, and a salvage value of $125,000. In order to produce 3 units in an hour, three workers are required a rate of...
Consider the following two alternatives: Alternative 1 has a first cost of $485,000, an annual maintenance and operating cost of $20,000, and a salvage value of $125,000. In addition, it requires two workers at a rate of $25/hour to output 5 units per hour Alternative 2 has an initial cost of $325,000, an annual maintenance and operating cost of $13,500, and no salvage value. In order to produce 3 units in an hour three workers are required a rate of...
First Cost S100,000 $35,000 per year increase of $3,000 per year S5 $205 Benefits O&M Costs Salvage Value Useful Life ROR $45,000 in year 1; for each of the following years $15,000 8 years 10,000 $10,000 4 years 10 85% 14. The NPW of Alternative #1 (necessary to make a decision between the two alternative) is closest to a) $3,249 $1,930 ) $543 e) $2,227 8) $723 h) $431 )$3,860 15. The increase in O&M costs that would result in...
Given that i = 10% per year and the data below: Alternative Project A First Cost($) -50,000 Annual Cost ($/yr) -20,000 Salvage value ($) +10,000 Life (years) 12 The "Capital Recovery (CR)" for project A is equal to: **The answers presented below were calculated using the appropriate factors from interest tables including all their decimal places** CR=-$6,870 CR=-$26,870 CR=-$10,572 CR=-$7,806
2. Determine the net present value of alternative 2 1. Determine the net present value of alternative 1. Initial cash investment (net) Interstate Manufacturing is considering either replacing one of its old machines with a new machine or having the old machine overhauled, Information about the two alternatives follows. Management requires a 12% rate of return on its investments (PV of $1. FV of $1. PVA of $1. and FVA of $1) (Use appropriate factor(s) from the tables provided.) Initial...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago