From the data shown, determine the ESL of the asset. (Note: Values in the table are AW values, not individual year-end values.) AW of Salvage Value, $ AW of Operating Cost, $ -38,000 99,000 -34,000 38,095 -37,000 18,127 -43,000 6464 -37,000 3276 Years Retained 1 2 3 4 5 The ESL of the asset is year(s). AW of First Cost, $ -146,000 -158,000 -136,000 -152,000 -138,000

From the data shown, determine the ESL of the asset. (Note: Values in the table are AW values, not individual year-end values.) AW of Salvage Value, $ AW of Operating Cost, $ -38,000 99,000 -34,000 38,095 -37,000 18,127 -43,000 6464 -37,000 3276 Years Retained 1 2 3 4 5 The ESL of the asset is year(s). AW of First Cost, $ -146,000 -158,000 -136,000 -152,000 -138,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Required information The Briggs and Stratton Commercial Division designs and manufacturers small engines for golf turf maintenance equipment. A robotics-based testing system with support equipment will ensure that their new signature guarantee program entitled "Always Insta-Start" does indeed work for every engine produced. First cost of equipment AOC per Year Salvage Value Estimated Life Pull System $-1,950,000 $-680,000 $105,000 8 years Push System $-2,650,000 $-420,000 $60,000 8 years Compare the annual worth of the two systems at MARR = 8% per year. Select the better system. The push system ✓is determined to be the better system.
! Required information The Briggs and Stratton Commercial Division designs and manufacturers small engines for golf turf maintenance equipment. A robotics-based testing system with support equipment will ensure that their new signature guarantee program entitled "Always Insta- Start" does indeed work for every engine produced. First cost of equipment AOC per Year Salvage Value Estimated Life Pull System $-1,550,000 $-620,000 $90,000 8 years Push System $-2,650,000 $-620,000 $50,000 8 years Compare the annual worth of the two systems at MARR = 11% per year. Select the better system. The (Click to select) is determined to be the better system. (Click to select) pull system push system
Required information The Briggs and Stratton Commercial Division designs and manufacturers small engines for golf turf maintenance equipment. A robotics-based testing system with support equipment will ensure that their new signature guarantee program entitled "Always Insta-Start" does indeed work for every engine produced. First cost of equipment AOC per Year Salvage Value Estimated Life Pull System $-1,450,000 $-700,000 $120,000 8 years Push System $-2,550,000 $-660,000 $80,000 8 years Determine the salvage value for the push system that will make the company indifferent to the two systems. Also, MARR = 12% per year. The salvage value for the push system is determined to be $ 2351611.32 in $1000 units.
From the data shown, determine the ESL of the asset. (Note: Values in the table are AW values, not individual year end values.) AW of First Cost, $ AW of Salvage Value, $ AW of Operating Cost, $ -48000 164000 99,000 -36000 38,095 47000 18,127 -53000 6464 49000 3276 Years Retained 1 2 3 4 5 The ESL of the asset is year(s). -148000 -162000 134000 154000
Compare between the following two (After Tax cash flow) machines using internal rate of return Machine (A) Machine (B) First Cost (S) 80,000 200,000 Life (years) 5 10 analysis, present worth analysis, and annual worth Annual Cost ($) 18,000 6,000 Salvage value (S) 20,000 40,000 analysis:B/C; after tax analysis SL Depreciation method SL Tax Rate (%) 30 30 After tax MARR 10 10 (%)
! Required information The Briggs and Stratton Commercial Division designs and manufacturers small engines for golf turf maintenance equipment. A robotics-based testing system with support equipment will ensure that their new signature guarantee program entitled "Always Insta-Start" does indeed work for every engine produced. First cost of equipment AOC per Year Salvage Value Estimated Life Pull System $-1500000 $-700000 $100000 8 years Push System $-2250000 $-600000 $50000 8 years Determine the salvage value for the push system that will make the company indifferent to the two systems. Also, MARR = 10.00% per year. The salvage value for the push system is determined to be $ Tin $1000 units.
QUESTION 5 For the below ME alternatives, which machine should be selected based on the AW analysis. MARR=10%. First cost, $ Annual cost, $/year Salvage value, $ Life, years Machine A Answer the below questions: C-AW for machine C = 15000 15,083 4,000 Machine B 30000 6,000 5,000 Machine C 12,557 4,000 1,000
A company makes bicycles. It buys the tires for bicycles from a supplier. 2 tires are used in one bicycle. According to the information below calculate the Economic Order Quantity for tires. Bicycle production per month: 450 units / month Cost of Tire: $25 / piece Annual Inventory Carrying Cost: 13% Ordering Cost: $50 / order
Economics Last year, a decision was made to keep the same equipment in lieu of buying new equipment. The old equipment's trade-in value last year was $4000 and its value this year is $2000. The operating cost was $700 last year. If bought last year, the new equipment would have cost $13K, the salvage value after 8 years would be $2000, and it would have an annual operating cost of $4000. If bought last year, what would have been the EUAC of the new equipment (in dollars) at 16% interest rate per year? (provide your answer in the box as a negative value if you arrive at costs) What would have been the correct decision? (provide your answer and justification in your pdf file submission)
5- Year SV O&M 15,000 1000 12,000 1500 9,000 The table above lists salve value (SV) and operating and maintenance (O&M) cost of an asset through 3 years with the initial cost of $20,000. Given MARR is 10%, which of the statements 3 2000 is correct (choose the closest answer)? a) The marginal cost at year 2 is $6,000 and the annual cost (EUAC) through year two is $6,500 b) The marginal cost at year 2 is $6,000 and the annual cost (EUAC) through year two is $7,048 c) The marginal cost at year 2 is $6,500 and the annual cost (EUAC) through year two is $7,048 d) The marginal cost at year 2 is $6,500 and the annual cost (EUAC) through year two is $6,000
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Required information The Briggs and Stratton Commercial Division designs and manufacturers small engines for golf turf maintenance equipment. A robotics-based testing system with support equipment will ensure that their new signature guarantee program entitled "Always Insta-Start" does indeed work for every engine produced. Push System $-2,150,000 $-500,000 $100,000 8 years First cost of equipment AOC per Year Salvage Value Estimated Life Pull System $-1,700,000 $-740,000 $125.000 8 years Determine the salvage value for the push system that will make the company indifferent to the two systems. Also, MARR = 12% per year. The salvage value for the push system is determined to be $ in $1000 units.