i = 8% / 4 = 2% per quarter
NPW analysis will be carried for 4 yrs or 16 quarters (LCM to 2 & 4)
NPW of Process K = -160000 - 7000 * (P/A,2%,16) - (160000 - 40000)*(P/F,2%,8) + 40000 * (P/F,2%,16)
= -160000 - 7000 *13.577709 - 120000*0.853490 + 40000*0.728446
= -328324.92 ~ -328325 (Nearest Dollar)
NPW of Process L = -210000 - 5000 * (P/A,2%,16) + 26000 * (P/F,2%,16)
= -210000 - 5000 *13.577709 + 26000*0.728446
= -258948.95 ~ -258949 (Nearest Dollar)
As present cost of Process L is less, it should be selected
dont use excel 5.14 Tivo processes can be used for producing a polyuner that reduces friction...
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5-43 A new alloy can be produced by Process A, which costs $200,000 to implement. The operating cost salvage value of $25,000 after its 2-year life. Process B will operating cost of $40,000 salvage value after its 4-year life. The interest rate is 8% per year will be $10,000 per quarter with a have a first cost of $250,000, an $15,000 per quarter, and a compounded...
please dont use excel, show me the formula used
5. Machines that have the following costs are under consideration for a robotized 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, $ Annual operating cost, $ per year Salvage value, $ Life, years - 250,000 --60.000 70.000 -430.000 -40,000 95.000
Please dont use excel,show me the formula used
7. Compare the alternatives shown below on the basis of a future worth analysis, using an interest rate of 8% per year. Р First cost, $ Annual operating cost, $ per year Salvage value, $ Life, years -23.000 -4,000 3,000 -30,000 -2.500 1.000
Two methods can be used for producing expansion anchors. Method A costs $85,000 initially and will have a $15,000 salvage value after 3 years. The operation cost with this method will be $32,000 per year. Method B will have a first cost of $125,000, and operating cost of $10000 per year and a $40,000 salvage value after its 3-year life. Using a Future Worth analysis and an interest rate of 8%/yr/yr, which method should you recommend? please do not use...
You and your partner have become very interested in cross-country motorcycle racing and wish to purchase entry-level equipment. You have identified two alternative sets of equipment and gear. Package K has a first cost of $200,000, an operating cost of $7,500 per quarter, and a salvage value of $30,000 after its 2-year life. Package L has a first cost of $290,000 with a lower operating cost of $3,700 per quarter and an estimated $25,000 salvage value after its 4-year life....
Two methods can be used to produce expansion anchors. Method A costs $90,000 initially and will have a $16,000 salvage value after 3 years. The operating cost with this method will be $26,000 in year 1, increasing by $3200 each year. Method B will have a first cost of $106,000, an operating cost of $6000 in year 1, increasing by $6000 each year, and a $36,000 salvage value after its 3-year life. At an interest rate of 14% per year,...
Solve without excel:
9.17 A piece of imaging equipment was purchased two years ago for $50,000 with an expected useful life of 5 years and a $5000 salvage value. Since its in- stallation performance was poor, it was upgraded for $20,000 one year ago. Increased demand now requires another upgrade for an additional $22,000 so that it can be used for 3 more years. Its new an- nual operating cost will be $27.000 with a $12,000 salvage after the 3...
You and your partner have become very interested in cross-country motorcycle racing and wish to purchase entry-level equipment. You have identified two alternative sets of equipment and gear. Package K has a first cost of $190,000, an operating cost of $10,000 per quarter, and a salvage value of $40,000 after its 2-year life. Package L has a first cost of $260,000 with a lower operating cost of $2,500 per quarter and an estimated $14,000 salvage value after its 4-year life....
Please answer using excel showing equations.
Company B must choose one of two methods for its validation activity. Based on the information below, perform an AW analysis and make recommendation. MARR is 10% per year compounded quarterly. Method Initial Cost Annual Operation Cost Y 250000 200,00 X 100,000 30,000 in year one increasing by 5000 each year 0 3 Salvage Value Estimated Life in Year 0 6
please solve problem 1
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dont need help with the next question i need it with this one
Name. Problem 1: A track dozer cost $185,500 to purchase. Fuel, oil, grease, and minor maintenance are estimated to cost $37.00 per operating hour. A major engine repair costing $26,000 will probably be required after 7,200 hr of use. The expected resale price (salvage value) is 21% of the original purchase price. The machine is expected to have a useful life of...