solve manually. (do not use excel) 2. Choose from the two machines which is more economical?Machine AMachine BP 8,000P 14,000151502,000P 3,000P 1,2003%First CostLifeSalvage ValueAnnual OperationP 2,400Annual MaintenanceP 1,000Taxes and Insurance3%Which will you choose if minimum required profit is 16%. Use Rate of Return on AdditionalInvestment, Annual Cost Method and Present Worth Method

Given that; Machine A Machine B First Cost P8000 P14000 Annual operation P3000 P2400…

2. Choose from the two machines which is more economical? Machine A Machine B P 8,000 P 14,000 15 15 2,000 First Cost Life Salvage Value Annual Operation Annual Maintenance Taxes and Insurance Which will you choose if minimum required profit is 16%. Use Rate of Return on Additional Investment, Annual Cost Method and Present Worth Method 0 P 3,000 P 1,200 P 2,400 P 1,000 3%

2. Choose from the two machines which is more economical? Machine A Machine B P 8,000 P 14,000 15 15 2,000 First Cost Life Salvage Value Annual Operation Annual Maintenance Taxes and Insurance Which will you choose if minimum required profit is 16%. Use Rate of Return on Additional Investment, Annual Cost Method and Present Worth Method 0 P 3,000 P 1,200 P 2,400 P 1,000 3%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Given the following information for an insurance company that writes 24-month term policies: Number of Vehicles 50 100 Policy Group A B Effective Date January 1, 2010 Expiration Date December 31, 2011 July 1, 2010 June 30, 2012 All policies within each group have the same effective date. (a) Calculate the earned car-years for calendar year 2011. (b) Calculate the earned car-years for policy year 2010 evaluated as of December 31, 2010 and as of December 31, 2011. (c) Assume Policy Group B cancels on January 1, 2011. Calculate the 2010 policy year written car- years evaluated as of December 31, 2010 and as of December 31, 2011 for Policy Group B. (d) Assume Policy Group B cancels on July 1, 2011. Calculate the 2010 and 2011 calendar year written car-years for Policy Group B.
What is Present-Worth Factor/
Please manually solve each and show equations used Thank You A certain manufacturing plant is being sold and was submitted for bidding. Two birds weresubmitted by interested buyers. The first bid offered to pay P200, 000 each year for 5 years, eachpayment is being made at the beginning of each year. The second bidder offered to pay P120,000 thefirst year, P180,000 the second year, and P270,00 each year for the next 3 years, all paymentsbeing made at the beginning of each year. If money is worth 12% compounded annually, which bidshould the owner of the plant accept?
Marquesa earns money and can spend money only this year and next year. Her utility isU(c1, c2) = c1c2. She can save and borrow as much as she wants at an annual interest rate of10%. If she earns $50,000 this year and $110,000 next year, what is the largest amount shecould consume next year?(a) $165,000(b) $150,000(c) $110,000(d) $82,500(e) None of the above
Present using 1. ANNUAL WORTH METHOD 2. PAYBACK METHOD Rate of interest = 10%
For the following questions, choose the letter of the best answer (showing work): 2.1. How many months would you have to put $500 per month into an account that earns 4% monthlyin order to accumulate $6,000?(a) 10 months(b) 65 months(c) 15 months(d) 5 months 2.2. A machine will need to be replaced 10 years from today for $10,000. How much must be depositednow into an account that earns 5% per year to cover the replacement cost?(a) $1,486(b) $6,139(c) $10,000(d) $4,810 2.3. An effective rate of 10% per quarter is closest to what effective rate per year?(a) 40.00%(b) 46.41%(c) 10.38%(d) 16.99% 2.4. If the internal rate of return (IRR) of Alternative A is 30%, the IRR of Alternative B is 25%, andMARR is 20%, which of the following is correct?(a) Not enough information is given to determine which alternative is preferred(b) Alternative A is preferred over Alternative B(c) Alternative B is preferred over Alternative A(d) Neither Alternative A nor Alternative B is acceptable 2.5.…
Problem 5) The following annual costs are associated with three new extruder machines being considered for use in a Styrofoam cup plant: Data X-TRUD SUPR-X Useful-Life, Years 9. 13 11 First Cost $2,300,000 $2,780,000 $2,540,000 Salvage Value 82,000 118,000 97,000 Annual Benefit 580,000 670,000 650,000 M&O 65,000 78,000 71,000 M&O Gradient 11,000 15,000 12,500 The company's interest rate (MARR) is 12%. Which extruder should the Styrofoam Company choose? Use Annual Cash Flow Analysis.
Consider five years of monthly pro fit for a company Month Sales Jan-16 747 Feb-16 697 Mar-16 1014 Apr-16 1126 May-16 1105 Jun-16 1450 Jul-16 1639 Aug-16 1711 Sep-16 1307 Oct-16 1223 Nov-16 975 Dec-16 953 Jan-17 1024 Feb-17 928 Mar-17 1442 Apr-17 1371 May-17 1536 Jun-17 2004 Jul-17 1854 Aug-17 1951 Sep-17 1516 Oct-17 1642 Nov-17 1166 Dec-17 1106 Jan-18 1189 Feb-18 1209 Mar-18 1754 Apr-18 1843 May-18 1769 Jun-18 2207 Jul-18 2471 Aug-18 2288 Sep-18 1867 Oct-18 1980 Nov-18 1418 Dec-18 1333 Jan-19 1333 Feb-19 1370 Mar-19 2142 Apr-19 2138 May-19 2078 Jun-19 2960 Jul-19 2616 Aug-19 2861 Sep-19 2237 Oct-19 2225 Nov-19 1590 Dec-19 1659 Jan-20 1613 Feb-20 1605 Mar-20 2349 Apr-20 2468 May-20 2532 Jun-20 3127 Jul-20 3288 Aug-20 3285 Sep-20 2485 Oct-20 2723 Nov-20 1835 Dec-20 1894 question: Forecast monthly sales for 2022 choosing an appropriate method.
Costs and revenues (in thousands) 99 15 30 45 60 75 901052013550165 80195 Quantity per period (in thousands) Tools 1 O A
interest rate = 5% / yr. Please no excel work, I want to see how it is solved BY HAND. Thanks
Quest io n 12 A manufacturer can sell a certain product for R80 per unit. Total cost consists of a fixed overhead of R4, 500 plus production costs of R50 per unit. (a) How many units must the manufacturer sell to bre ak even? (b) What is the manufact urer's profit or loss if 200 units are sold? (c) How many units must the manufacturer sell to realize a profit of R900? Hint Express the cost function C (r), the revenue function R(r) and the profit function P(r) as line ar functions, where r is the number of units.
8-19 Andrews Manufacturing offers three models for one of its products to its customers. You have been asked to analyze the choices from the customer's perspec- tive. Which model should a customer choose if each model has a life of 12 years? Doing nothing is an alternative. Alternative Deluxe Regular Economy First cost $220,000 S125,000 43,000 13,000 $75,000 28,000 8,000 Annual benefit 79,000 Maintenance and 38,000 operating costs Salvage value 16,000 6,900 3,000 (a) Construct a choice table for interest rates from 0% to 100%. (b) MARR analysis, which alternative, if any, should the 15%. Using incremental rate of return customer choose?