AW of the Machine R
= - 250,000(A/P,6%,4) -40,000+20,000(P/F,6%,4)*(A/P,6%4)
= -250000(0.288591)-40000+20000*0.792094*0.288591
= -72147.75-40000+4571.8239
= -107575.92
AW of Machine S
= -370500(A/P,6%,3)-50000+20000(P/F,6%,3)(A/P,6%,3)
= -370500(0.37411)-50000+20000*0.839619*0.37411
= -138607.75-50000+6282.19
= -182325.56
Select Machine R
3. Chapter 5 Assignment 1) A ski resort wishes to evaluate two alternative machines for ski...
Please show steps. Thank you.
1) A ski resort wishes to evaluate two alternative machines for ski and board tuning. Select the best alternative using the AW method at 6% per year. Machine R Machine S -250,000 -370,500 -40,000 -50,000 First cost, $ Annual operating cost, $ per year Life, years Salvage value, $ 20,000 20,000
DelRay Foods must purchase a new gumdrop machine. Two machines are available. Machine 7745 has a first cost of $1,400, an estimated life of 10 years, a salvage value of $1,000, and annual operating costs estimated at $0.01 per 1,000 gumdrops. Machine A37Y has a first cost of $8,000, a life of 10 years, and no salvage value. Its annual operating costs will be $280 regardless of the number of gumdrops produced. MARR is 6%/year, and 30 million gumdrops ware...
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
Required information Problem 14.056 The two machines shown are being considered for a chip manufacturing operation. Assume the MARR is a real return of 14% per year and that the inflation rate is 5.2% per year. 0.000 Machine First Cost, $ M&0. $ per year Salvage Value, $ Life, years -145.000 -70.000 40,000 5.000 00.000 Problem 14.056.a: Compare two alternatives based on their AW values without inflation consideration Which machine should be selected on the basis of an annual worth...
Required information Problem 14.056 The two machines shown are being considered for a chip manufacturing operation. Assume the MARR is a real return of 14% per year and that the inflation rate is 5.2% per year. -780.000 Machine First Cost. $ M&O. $ per year Salvage Value, $ Life, years -145,000 - 70.000 40,000 -5,000 200,000 Problem 14.056.b: Compare two alternatives based on their AW values with inflation consideration Which machine should be selected on the basis of an annual...
Snow Valley Ski Resort has been contracting snow removal from
its parking lots at a cost of $400/day. A snow-removal machine can
be purchased for $27,000. The machine is estimated to have a useful
life of 6 years with a zero salvage value at that time. Annual
costs for operating and maintaining the equipment are estimated to
be $5,250. Determine the break-even value for the number of days
per year that snow removal is required in order to justify
purchasing...
Required information The two machines shown are being considered for a chip manufacturing operation. Assume the MARR is a real return of 13% per year and that the inflation rate is 4.9% per year. Machine First Cost, $ M&0, $ per year Salvage Value, $ Life, years А -150,000 -70,000 40,000 B -800,000 -5,000 200,000 00 Which machine should be selected on the basis of an annual worth analysis if the estimates are in future dollars? What is the annual...
Question 3 (10 points) The machines shown below are under consideration for an improvement to an automated candy bar wrapping process. Machine C Machine D First cost, $ -50.000 -65,000 Annual cost, S/year -9,000 -10,000 Salvage value, S 12.000 25,000 Life. years (Source: Blank and Tarquin) Based on the data provided and using an interest rate of 8% per year, the correct equation to calculate the Annual Worth "AW" of Machine C is: AWC-50,000(P/A, 8%, 3) + 12,000(F/A, 8%, 3)...
Q2. Evaluate an electronic fabrication machine on the basis of the annual worth method when the MARR is 10% per year. Relevant cost data are as follows: (7 Marks) Investment cost Useful life Market (salvage) value at end of useful life Annual operating expenses Overhead cost-end of 8th year Overhead cost-end of 12th year Electronic Fabrication Machine $18,000 15 years $6,000 $450 $1000 $1500 Using Aw(i) method with short explai Please don't use excel use AW(i) factor
5. The data for new and used machines are shown below: Initial cost($) Annual operating cost ($/year) Salvage value (5) Life (years) Used machine 15,000 8,000 5,000 New machine 40,000 2,000 10,000 Use an interest rate of 7% per year. a) Find the present worth of the new machine b) Compare the PW of the used machine to the new c) If each machine were to be funded using an annual payment load at 8%, how much would the annual...