earch1Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has afirst cost of $120,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value. Annual labor costswould increase $2,000 using the gang punch, but annual raw material costs would decrease $15,000. MARR is 4.0%/year.Part aQFtAWhat is the present worth of this investment? $Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is +5.eTextbook and MediaZSave for LaterPart bThe parts of this question must be completed in order. This part will be available when you complete the part above.@2F2E3SWWEDx$4RFFB%5FG6TYGF7&7HnFBU*8F9Attempts: 0 of 3 usedI02(9F10J KX CV BN MO-)F110L<AltSubmit Answer*+PF1211:85°F Mostly cloudPrisc(+ 11[?InseA

Present worth is a financial concept that refers to the value today of a future stream of cash…

Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $120,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value. Annual labor costs would increase $2,000 using the gang punch, but annual raw material costs would decrease $15,000. MARR is 4.0%/year. Part a What is the present worth of this investment? $ CH places and searach de

Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $120,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value. Annual labor costs would increase $2,000 using the gang punch, but annual raw material costs would decrease $15,000. MARR is 4.0%/year. Part a What is the present worth of this investment? $ CH places and searach de

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $100,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value. Labor costs would increase $2,000 per year using the gang punch, but raw material costs would decrease $12,000 per year. MARR is 5 %/year. Part a Your answer is incorrect. What is the discounted payback period for this investment? 7893 years Carry all interim calculations to 5 decimal places and then round your final answer to the nearest year. The tolerance is ±1.
We are buying a machine for cleaning up the seawater which is contaminated with oil spill. Compare the following three alternatives by adopting the incremental ROR analysis when MARR = 10%. Use PW method after you calculate the incremental values. Which one should we select? 7,8 Machine 1 Machine 2 First cost, $ Annual operating cost, $ Life, years Machine 3 -5,000 -3,000 5 -6,500 -2,500 5 -8,500 -2,000 20 సబం లణంం
Carlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA fines of $23,500 per year. An emission reduction filter will cost $85,000 and have an expected life of 5 years. Carlisle's MARR is 10%/year. Part a Your answer is incorrect. What is the future worth of this investment? $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±10.
Value Lodges owns an economy motel chain and is considering building a new 200-unit motel. The cost to build the motel is estimated at $8.000.000; Value Lodges estimates furnishings for the motel will cost an additional $700.000 and will require replacement every 5 years. Annual operating and maintenance costs for the motel are estimated to be $800,000. The average rental rate for a unit is anticipated to be $40/day. Value Lodges expects the motel to have a life of 15 years and a salvage value of $900.000 at the end of 15 years. This estimated salvage value assumes that the furnishings are not new. Furnishings have no salvage value at the end of each 5-year replacement interval. Assuming average daily occupancy percentages of 50%, 60%, 70%, and 80% for years 1 through 4, respectively, and 90% for the 5th through 15th years, a MARR of 12%/year, 365 operating days/year, and ignoring the cost of land, should the motel be built? Base your decision on an internal rate of return analysis.…
Alpha Electronics can purchase a needed service for $90 per unit. The same service can be provided by equipment that costs $100,000 and that will have a salvage value of $0 at the end of 10 years. Annual operating costs for the equipment will be $7,000 per year plus $25 per unit produced. MARR is 12%/year. Solve, a. Based on a future worth analysis, should the equipment be purchased if the expected production is 200 units/year?b. Based on a future worth analysis, should the equipment be purchased ifthe expected production is 500 units/year? c. Determine the breakeven value for annual production that will return MARR on the investment in the new equipment.
Economics Using the repeatability assumption, what is the the value X) of the investment cost of Alternative 2 that will cause it to breakeven with Alternative 1,. assuming MARR= 12% per year Alternative 1 Alternative 2 $3,000 $1,800 $1,000 $2,000 5 years $X $2,500 $1,200 $4,000 7 years Investment cost Annual receipts Annual expenses Salvage value Useful life
Two numerically controlled drill presses are being considered by the production department of Zunni's Manufacturing; one must be selected. Comparison data is shown in the table below. MARR is 10%/year. Drill Press T Drill Press M Click here to access the TVM Factor Table Calculator Part a * Your answer is incorrect. Initial Investment Estimated Life Estimated Salvage Value Annual Operating Cost Annual Maintenance Cost What is the future worth of each drill press? Drill Press T: $ Drill Press M: $ 40000 60000 $20,000 10 years $5,000 $12,000 $2,000 $30,000 10 years $7,000 $6,000 $4,000 Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±20.
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Value Lodges owns an economy motel chain and is considering building a new 200-unit motel. The cost to build the motel is estimated at $8,000,000; Value Lodges estimates furnishings for the motel will cost an additional $700,000 and will require replacement every 5 years. Annual operating and maintenance costs for the motel are estimated to be $800,000. The average rental rate for a unit is anticipated to be $40/day. Value Lodges expects the motel to have a life of 15 years and a salvage value of $900,000 at the end of 15 years. This estimated salvage value assumes that the furnishings are not new. Furnishings have no salvage value at the end of each 5- year replacement interval. Assuming average daily occupancy percentages of 50%, 60%, 70%, and 80% for years 1 through 4, respectively, and 90% for the 5th through 15th years, a MARR of 12%/year, 365 operating days/year, and ignoring the cost of land, should the motel be built? Base your decision on an internal rate of return analysis.…
Value Lodges owns an economy motel chain and is considering building a new 200-unit motel. The cost to build the motel is estimated at $8,000,000; Value Lodges estimates furnishings for the motel will cost an additional $700,000 and will require replacement every 5 years. Annual operating and maintenance costs for the motel are estimated to be $800,000. The average rental rate for a unit is anticipated to be $40/day. Value Lodges expects the motel to have a life of 15 years and a salvage value of $900,000 at the end of 15 years. This estimated salvage value assumes that the furnishings are not new. Furnishings have no salvage value at the end of each 5- year replacement interval. Assuming average daily occupancy percentages of 50%, 60%, 70%, and 80% for years 1 through 4, respectively, and 90% for the 5th through 15th years, a MARR of 12% / year, 365 operating days/year, and ignoring the cost of land, should the motel be built? Base your decision on an internal rate of return analysis.…
A machine costs $15000 and has a maintenance cost $1000 per year and a salvage value of $2500 after three years. The life cycle cost of the machine ?MARR =10%Explain each step for used formulas.
Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $105,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value. Annual labor costs would increase $3,500 using the gang punch, but annual raw material costs would decrease $7,000. MARR is 4.0 %/year. What is the present worth of this investment?