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- For th below two machines and based on CC analysis which machine we should select? MARR=10% Machine A Machine B First cost, $ Annual cost, $/year Salvage value, $ Life, years 3 Answer the below question: B- the CC for machine B= 20872 9067 4793 - 123476 infinite 9266period of 5 years. Salvage value is estimated at 10% of its first cost. The interest rate is 12% per at $ 150,000. Labor and other operating costs are estimated to be $35,000 per year over the study high-use component can be purchased (bought) for S 25 per unit with a quick delivery. QWA Electronics is considering between two alternatives for their electronic components' needs. A Mestion #6 (20 points) cost of $ 5 per unit. For this option of making the product, QWA needs to purchase equipment today Alternatively, QWA can make the components in-house and have it already available at a variable year. Determine the breakeven quantity based on annual worth of cash flows. 0. Indicate whether to buy or make the components at the expected usage level of 5000 units per year. Explain your answer. a.TRUE OR FALSE 4. If there is a past estimation error, there is a need to replace the property immediately.5. The physical life is always greater than all the other “life” factors under replacement analysis.6. If breakeven analysis is conducted with PW analysis for different MEAs, it doesn’t guarantee that the fastestalternative to reach its breakeven point has also the highest equivalent worth.
- SHOW COMPLETE SOLUTION PLS BADLY NEEDED ASNWERS5. The physical life is always greater than all the other "life" factors under replacement analysis. 6. If breakeven analysis is conducted with PW analysis for different MEAS, it doesn't guarantee that the fastest alternative to reach its breakeven point has also the highest equivalent worth.An industrial plant has hired a contractor to develop a solar farm nearby for the industrial plant's electricity consumption. During the 3-year construction period, the contractor will need to run a generator to power the construction. Cost analysis from previous projects indicates: Generator Brand Installed Cost Cost per Hour A $22M $500 B $23M $400 C $25M $250 D $30M $150 At the end of 3 years, the generator will have a salvage value equal to the cost of removing them. The generator will operate 6,000 hours per year. The lowest interest rate at which the contractor is willing to invest money is 7%. (The minimum required interest rate for invested money is called the minimum attractive rate of return, or MARR.) Select the alternative with the least present worth of cost. O Choice "C" with $29,872,900 O Choice "B" with $29,298,320 O Choice C with $28,936,450 O Choice "A" with $29,872,900
- New microelectronics testing equipment was purchased 2years ago by Mytesmall Industries at a cost of $600,000. Atthat time, it was expected to be used for 5 years and thentraded or sold for its salvage value of $75,000. Expandedbusiness in newly developed international markets is forcingthe decision to trade now for a new unit at a cost of$800,000. The current equipment could be retained, ifnecessary, for another 2 years, at which time it would have a$5000 estimated market value. The current unit is appraisedat $350,000 on the international market, and if it is used foranother 2 years, it will have M&O costs (exclusive ofoperator costs) of $125,000 per year. Determine the valuesof P, n, S, and AOC for this defender if a replacementanalysis were performed today. P = market value =$350,000AOC = $125,000 per yearn = 2 yearsS = $5,00012% per year. For the cash flows shown, use an annual worth comparison and an interest rate of First cost, $ Annual cost$, per year Overhaul cost every 5 years,$ Salvage value, $ Life, years X Y -100,000 -250,000 -40,000 -30,000 0 2,000 30,000 10,000 5 10 Z -500,000 -10,000 5,000 ∞ a) Determine the alternative that is economically best. b) Determine the first cost required for each of the two alternatives not selected in part a) so thatInclude complete solutions pls.
- Kaneb is evaluating two alternative pipeline welders. Welder A costs $310,000, has a 7-year life, and is expected to generate net cash inflows of $78,000 in each of the 7 years. Welder B costs $320,000, has a 5-year life, and is expected to generate annual net cash inflows of $68,900 in each of the 5 years. Kaneb's cost of capital is 16%. Using the equivalent annual annuity method, which alternative should be chosen and what is its NPV?the The fixed costs at Mahi consulting company are $120,000 annually. The annual revenue is $3,000 per client and each client has a $500 variahl cost. Find the breakeven point per year and the annual profit/loss if 408 60 clients have are serviced next year.Two production methods are proposed. Method A cost $60,000 initially, will have an operating cost (ANNUAL) of $28,000 per year, and salvage of $15,000. Method B will have a first cost of $120,000, operating cost of $8,500 per year (ANNUAL) and salvage value of $40,000. Both have 3 year life and use a MARR of 12%. Using PW, which one would you select? Answer neatly ASAP with proper explanation of it Thank you