Q4: Machines that have the following costs are under consideration for a robotized welding process. Using an interest rate of 10% per year, determine which alternative should be selected on the basis of a present worth analysis. Show (a) hand and (b) spreadsheet solutions. First cost, $ Annual operating cost, $ per year Salvage value, $ Life, years Machine X 250,000 Machine Y 430,000 60,000 40,000 70,000 95,000 3 6

Buying Equipment 1 from XYZ company and company ABC will give the production similar productivity input of 400,000.00 per year. The equipment from company XYZ has a purchase price of 200,000.00, annual maintenance of 5,000.00, and production life of 10 years, while the equipment from company ABC has a purchase price of 100,000.00, annual maintenance of 2,000.00, and production life of 12. Using present worth method, what is the present values of their purchase profit? Use MARR of 20%

QUESTION 8 Two processes can be used for producing a polymer that reduces friction loss in engines. Which process should be selected on the basis of a present worth analysis using the LCM, at an interest rate of 10% per year? Answer the below questions to select the best Option. Process A Process B First cost, $ 1,397,151 534,579 Annual operating cost, $ per year 90,383 32,000 Salvage value, $ 80,000 130,000 Update cost at year 2, $ 15,000 Life, years 4 8 EGN 3212 - Eco PW for Process A-

Machine Initial cost, $ Annual cost, $/year Salvage value, $ Life, years O-$87,840 O-$103,910 The estimates for the machines are for two mutually exclusive alternatives. The co of money is 10% per year. The present worth of Machine X is closest to: O $114,310 $65.270 O X -66,000 -10,000 10,000 At 6 Y -46,000 -15,000 24,000 3

Required information A company that manufactures magnetic flow meters expects to undertake a project that will have the cash flows estimated. First cost, $ Equipment replacement cost in year 2, $ Annual operating cost, $/year Salvage value, $ Life, years -800,000 -300,000 -850,000 250,000 4 At an interest rate of 10% per year, what is the equivalent annual cost of the project? Find the AW value using tabulated factors. The equivalent annual cost of the project is $-[

You received a memo that you are appointed as the team leader for a new commercial building project. Based on the estimation, if your team will be using a steel, it will cost 80,000 per month and 145000 cost if glass. For the plan A, it has an annual maintenance cost is 25000, 1000 repair cost every 2 years and a salvage value of 3000 after 15 years. For the plan B, the repair cost is 3500 every 3 years, annual maintenance cost of 30000 and a salvage value of 1000 after 20 years. Compute for the capitalized cost if the money is worth 8% compounded annually and choose the best material for the project. CC Plan A = (2 decimal places) %3D СC Plan B %3 (2 decimal places)

A large textile company is trying to decide which sludge dewatering process it should use ahead of its sludge drying operation. The costs associated with centrifuge and belt press systems are shown. Compare them on the basis of their annual worths using an interest rate of 10% per year. System First cost, $ Centrifuge -250,000 -31,000 Belt Press -170,000 -35,000 -26,000 10,000 4 AOC, $/year Overhaul in year 2, $ Salvage value, $ Life, years The annual worth of the centrifuge system is $- The system selected on the basis of the annual worth analysis is the (Click to select) ✓ system. 40,000 6 and the annual worth of the belt press system is $-

Example A company is considering two types of equipment for its manufacturing plant. Pertinent data are as follows: Freeze Type A Type B First cost P200,000 P300,000 Annual Operating Cost P32,000 P24,000 D Annual Labor Cost P50,000 P32,000 Insurance and Property Taxes 3% 3% Payroll Taxes 4% 4% Estimated Life TO 10 If the minimum required rate of return is 15%, which equipment should be selected?

YOLO Construction Co. is planning to purchase a new truck Company uses MARR as 10%% per year. Evaluate the following two altematives by Present Worth Analysis using Least Common Multiple (LCM) technique. Select the PW value of Alternative A First Cost, $ -170000 -130000 Annual Income, S/year 22000 and increasing starting from year 1 by $500 each year 29000 Annual Cost, S/year -7000 -11000 Major Maintenance Cost, every 3 years, S Salvage Value, S Life, years |-10000 17000 10000 4 Select one: O a. -195520.8 O b. -146445.8 O c. -116200 O d. -191185 O é. -142110

If you are asked to perform an incremental ROR analysis for the two robots listed below, how would you set them up in an incremental cash flow table? WALL-E EVE First cost, $ -40,000 -35,000 Annual operating cost, S per year -1,500 -2,750 Salvage value, $ Life, years 30,000 5 20,500 O Alternative A: WALL-E Alternative B: EVE O The order does not matter. O Alternative A: EVE Alternative B: WALL-E