Ridgley Custom Metal Products (RCMP) must purchase a new tube bender. RCMP's MARR is 11 percent. The company is considering three models:ModelTAXFirst Cost$100,000$110,000$210,000Economic Life7 years8 years6 yearsUsing the annual worth method, which of the three tube benders should RCMP buy?Yearly Net Savings$55,000$50,000$75,000Click the icon to view the table of compound interest factors for discrete compounding periods when i = 11%.The annual worth of Model T is $ ☐. The annual worth of Model A is $ The annual worth of Model X is $ ☐. So, the Model(Round to the nearest cent as needed.)is the better choice to buy.Salvage Value$15,000$35,000$75,000

The objective of the question is to determine which tube bender model (T, A, or X) Ridgley Custom…

Answered: Ridgley Custom Metal Products (RCMP)…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please choose one of the following options. Double check your work. There is no additional information. This is the question and those are your options. PW analysis stands for Present Worth Analysis. It is a term used in engineering economics. What will be the total lifetime for every project if we compare them with PW analysis? Project A has a lifetime of 9 years, project B has a lifetime of 7 years, and project C has a lifetime of 3 years. 9 189 126 27 63
The present worth of an alternative is zero. What do we know about the value of the future worth? Select one: a. FW = zero b. Cannot be determined without cash flows c. FW is greater than zero d. FW is less than zero
Kiwidale Dairy is considering purchasing a new ice-cream maker. Two models, Smoothie and Creamy, are available and their information is given below. (perform all calculation using 5 significant figures, and give your final answer to 1 decimal place). (a) What is Kiwidale's MARR that makes the two alternatives equivalent? Use a present worth comparison. Smoothie Creamy First Cost 16,000 39,000 Service Life 12 years 12 years Annual profit 4,900 12,600 Annual operating cost 1,200 3,820 Salvage value 2,450 5,400 A MARR which makes the two alternatives equivalent in term of PW is ____________ %
Ridgley Custom Metal Products (RCMP) must purchase a new tube bender. RCMP's MARR is 13 percent. The company is considering three models: Economic Life 5 years 5 years 3 years Using the annual worth method, which of the three tube benders should RCMP buy? Model T A X First Cost $120,000 $170,000 $210,000 Yearly Net Savings $50,000 $80,000 $85,000 Salvage Value $20,000 $25,000 $80,000 Click the icon to view the table of compound interest factors for discrete compounding periods when i = 13%. The annual worth of Model T is $ The annual worth of Model A is $ The annual worth of Model X is So, the Model $ is the better choice to buy. (Round to the nearest cent as needed.)
Your company is determing whether or not it should invest in a new pallet wrapping station. The station would cost $6,500 and your company's MARR is 13%. You estimate the purchasing a pallet wrapper would save you $2,000 in labor annually, and at the end of 3 years you would realize a salvage value of $400. How would you calculate the present worth of this investment in Excel?
2. Switching to powder coating technology will reduce the emission of volatile organic carbons (VOCs) for a firm's production process. The initial cost is $300,000 with annual costs of $35,000 and savings of $80,000 per year. The salvage value 10 years from now is projected to be $75,000. What rate of return will the firm make on this investment? Round your answer to the nearest .01 percent.
Please no written by hand Appledale Dairy is considering upgrading an old ice-cream maker. Upgrading is available at two levels: moderate and extensive. Moderate upgrading costs $6500 now and yields annual savings of $3300 in the first year, $3000 in the second year, $2700 in the third year, and so on. Extensive upgrading costs $10 550 and saves $7600 in the first year. The savings then decrease by 20 percent each year thereafter. If the upgraded icecream maker will last for seven years, which upgrading option is better? Use a present worth comparison. Appledale’s MARR is 8 percent.
Kiwidale Dairy is considering purchasing a new ice-cream maker. Two models, Smoothie and Creamy, are available and their information is given below (all costs and profits are in dollars): Smoothie Creamy $17500 $37000 14 years $3500 $1000 $4000 First Cost Service Life Annual Profit Annual Operating Cost Salvage Value 12 years $10500 $3050 $4200 Calculate the present worth of the smoothie machine for one life cycle (no repeated lives), if the interest rate is 10%. Round your answer to two decimal places.
Kiwidale Dairy is considering purchasing a new ice-cream maker. Two models, Smoothie and Creamy, are available and their information is given below. (perform all calculation using 5 significant figures, and give your final answer to 1 decimal place). (a) What is Kiwidale's MARR that makes the two alternatives equivalent? Use a present worth comparison. Creamy First Cost 40,000 Service Life 12 years Annual profit 12,000 Annual operating cost 3,720 Salvage value 5,400 A MARR which makes the two alternatives equivalent in term of PW is Smoothie 15,000 12 years 4,700 1,400 2,250
A new design of aircraft saves annually fuel consumption of 45,000 gallons of fuel costing$6 per gallon. The new design costs $1 million to accomplish. The airline company’s MARRis 10%. Considering only the fuel savings.What is the simple payback period for the new design? What is the discountedpayback period?
Down payment Annual payments Years Discount rate plan A 1.297.19 5.342.38 20 12% What is the present value of plan B? plan 8 2.869.46 7.761.18 20 12% $278.29 9.449.95 20 12%
Appledale Dairy is considering upgrading an old ice-cream maker. Moderate upgrading costs $7050 now and yields annual savings of $4800 in the first year, and decreases by $300 dollars every year after that. If the upgraded ice-cream maker will last for seven years, what is the present worth of the upgrading option? Use a present worth comparison. Appledale's MARR is 9 percent.

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