The year-end operating costs of a certain machine are estimated to be 12,000 the first year and to increase by 2,500 each year during its 4-year life. A.) Is the gradient increasing or decreasing? B.) If capital is worth 12% determine the equivalent uniform year-end costs.
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The year-end operating costs of a certain machine are estimated to be 12,000 the first year and to increase by 2,500 each year during its 4-year life.
A.) Is the gradient increasing or decreasing?
B.) If capital is worth 12% determine the equivalent uniform year-end costs.
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- A factory has decided to retire an existing machine at the end of 2020. The new machine to replace the existing one has an estimated cost of P300,000. The old machine was sold for P25,000 when it was replaced. To accumulate the balance of the required capital, the firm paid a certain amount for a down payment in 2016 and deposited the following sums in an account earning interest at 10% compounded quarterly: P50,000 at the end of 2017 P60,000 at the end of 2018 P70,000 at the end of 2019 How much was the down payment paid in 2016?Your future company has purchased a machine and has entered into a contract that requires the company to pay $2000 each year for the upgrade of machine components at the end of years 6, 7, and 8. In anticipation of the upgrade cost, your company has decided to deposit equal amounts ( X ) at the end of each year for five years in a row in an account that pays i = 6% . The first deposit is made at the end of the first year. What is the value of X?A construction Equipment has a useful life of 6 years after which it has to be replaced by a new one. If the interest rate is 6% then sinking fund factor will be O 011 O 0.17 O 0.22 0.14
- The direct labor cost and material cost of a certain product are P300 and P400 per unit, respectively. Fixed charges are P100,000 per month and other variable costs are P100 per unit. If the product is sold at P1,200 per unit, how many units must be produced and sold to breakeven?an equipment costing P 270,000 has an estimated scrap value of P 25000 at the end of its economic life of 11 years. Using Double-Declining Balance Method, what is the book value after 7 years?A business investment option of $4000 is available that has earning capacity of 5% per year for 5 year. At the same time you want to purchase a much needed raw material for your product that is available in $3000 that has inflation rate of 9% per year. Discuss in the light of Engineering Economics Principles, if you would immediately invest or buy the raw materials and vice versa.
- The maintenance cost of a new boiler are estimated as follows: $600 per year for the first 3 years, $ X at the 4th year, and $ 1800 per year starting at the 5th year up to the end of its 10-year life. If the present value of all the maintenance is $ 20000, find the value of X. Money is 6% compounded annually.A contractor bought a concrete mixer at ? 120,000 if paid in cash. The mixer may also be purchased by installment to be paid within 5 years. If money is worth 8% compounded annually, what is the amount of each annual payments made at the end of each year if paid in installment up to the end of 5 years?Question 1. Answer the following: A. When the price =30000-400(Demand) and the variable cost-$3500 per unit, the value of demand that maximize the profit =......... B. The installation cost of a machine is $6000 with estimated life of 12 years and selvage value of $2000 at the end of the 12th year. What will be the annual depreciation cost in the fourth year (using straight line method)? C. Suppose that the initial cost of a certain operation is $120000 at the beginning of the first year. The expenditures are expected to be ($1000) at the end of the first year, $500 at the end of second year, and to increase by $1000 at the end of each of the next 4 years. The salvage value at the end of the 8th year is $2500. Draw the cash flow diagram. D. The Present worth (PW) of six annual payment of $6000 paid at the end of the each of the six years with interest rate of %12 compounded quarterly is.... E. The Future worth at the end of the 4 years (FW4) of the four $2000 annual payment paid at the…
- An equipment costing P 260,000 has an estimated scrap value of P 25,000 at the end of its economic life of 10 years. Using Double-Declining Balance Method, what is the book value after 6 years? Express your answer in whole number.A machine is under consideration for investment. The cost of the machine is P25,000. Each year it operates, the machine will generate a savings of P15,000. Given an effective annual interest of 18%, what is the discounted payback period, in years, on the investment in the machine?Determine the hourly cost of owning and operating of an equipment and as follows: Engine 160 hp, diesel, crankcase capacity 40 liters, hours between oil changes 100 hrs, OF = 0.65, useful life 6 years, it is used 2200 hrs per year, maintenance and repair is 90% of depreciation, life of tires 4000 hrs, repairs of tires 10% of depreciation of tires. Machine operator cost 180,000 ID/month (8work hours/day), Investment rate 12%, cost of fuel 15 ID /liter, cost of oil 500 ID /liter, purchase price 22,000,000 ID, tire price 4,500,000 ID.
