AN INDUSTRIAL PLANT IS CONSIDERING THE PURCHASE OF A CENTRIFUGAL PUMP. THREE OFFERS WERE RECEIVED AND BASIS OF SELECTION HAVE BEEN TABULATED AS FOLLOWS: OFFER A OFFER B OFFER C PRICE OF PUMP P 60,000.00 P 96,000.00 P 120,000.00 ECONIMIC LIFE (YEARS) 3 5 10 SALVAGE VALUE @ END OF ECONOMIC LIFE P 5,000.00 P 10,000.00 P 8,000.00 YEARLY MAINTENANCE COST 10,000.00 6,000.00 5,000.00 IF COST OF MONE

Q: O $80,000 ي A = yr 10,000 اگ او A- د 30,000 د یا د

A: Given Cash flow  Initial investment=80000 Annual revenue for 15 years=10000 per year From 16 years…

Q: A new lock is being considered for a dam, and it will cost $650,000 to design and build. Every 10…

A: here we calculate the given by following method as follow;

Q: N INVESTMENT OF P270,000.00 ON SHOP WITH THE FOLLOWING DATA: UNIFORM ANNUAL REVENUE - P185,000.00…

A: Given: Initial investment=270000 Revenue for 5 years=P 185000 Taxes=5% of first cost Salvage…

Q: A firm is considering the purchase of a new machine to increase the output of an existing production…

A:

Q: sidering the purchase of a new machine to increase the output of an existing production proce ovides…

A: *Answer:

Q: 1 The owner of a business is considering investing $55,000 in new equipment. He estimates that the…

A: (a) Calculate the annual capital cost for annuity factor for 12% and 10 years =$55000-$6000AP,12%,10…

Q: Consider the three small mutually exclusive investment alternatives in the table below. The feasible…

A:

Q: A steel company is trying to decide between two industrial type cranes. Crane A and Crane B are…

A: In the present worth method, we find the present values of all the cash flows.

Q: Let PW be present worth, let AW be annualized worth, let FW be future worth, B benefits, C costs.…

A: PW is the  calculation at present time for the  evaluation of  any project with n years of life…

Q: The following pair of assets differ only in the MARR. The problem asks you to determine the effect…

A: To find the economic life of an asset , we find the annual worth of cumulative operating costs and…

Q: A firm is considering the purchase of a new machine to increase the output of an existing production…

A: The Minimum Attractive Rate of Return (MARR) is a suitable rate of return that is used to evaluate…

Q: PLEASE SHOW COMPLETE SOLUTION, NO EXCEL.

A: As a reasonable rate of return, the Minimum Attractive Rate of Return (MARR) can be used to assess…

Q: A chemical plant is considering installing a new water purification system that costs $21 500. The…

A: Given information Initial cost=21500 Salvage value determined by 20% declining balance method Annual…

Q: Serseman Company has three potential projects from which to choose. Selected information on each of…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: A method of economy studies that does not take into consideration the economic life of the physical…

A: Present worth method of economy studies that do not take into consideration the economic life of the…

Q: "Kim has $20301 to invest for 7 years. She has the following options: [AJterm deposit at 3.8%…

A: Given: Amount invested=$20301 Option A: 3.8% compounded annually Option B: 3.78% compounded quartely…

Q: tion c

A: The profit maximizing level of output  for a monopolist is at point where MR is equal to MC Given MR…

Q: Mustang Auto Parts, Inc. is considering one oftwo forklift trucks for its assembly plant.• Truck A…

A: Time period is denoted by n and interest rate is denoted by i. Annual expense (AE) of the alternate…

Q: In replacement analysis, the "economic lifetime" of a capital equipment is A. the service life that…

A: The time value of money refers to the concept that cash received today has a higher value than cash…

Q: A machine costing P 480,000 has a life expectancy of 12 years with a salvage value of 10% of the…

A: Machine Cost = 480,000 Life expectancy = 12 years Salvage Value = 10%*480,000 = 48,000

Q: 1. A building owner is planning a renovation to an existing building, at an MARR of 10%. As part of…

A: In the header row of the relevant table, the derivation of computations in each necessary column has…

Q: A brass pump and a stainless-steel pump are being compared for an application in which their…

A: This will be solved by comparing the value below:

Q: A computer engineer is considering the purchase of a laptop whose operating characteristics are…

A: Fundamentally, engineering economics entails defining, estimating, and evaluating economic…

Q: A reactor of special design un the major item of equipment in a small chemical plant The initial…

A: We assume straight-line method (SLM). If Annual depreciation be D, then Annual total cost including…

Q: A business industry has a new product whose sales are expected to be 1.2, 3.5, 7, 5, 3 million units…

A: A business is considered profitable when the net present worth is positive, that is, when the…

Q: A discounted at 12% for 270 days. How much is the proceed? A. P9,200 B. P9,100 P9 000

A: The discount rate is the financing cost charged to business banks and other monetary establishments…

Q: e) Given the following model; Qd= a-50 P Qs= -100 + 20P

A: We are given, Qd = a - 50P Qs = -100 + 20P The market will be in equilibrium when Qd = Qs From there…

Q: - The annual worth values for a defender, which can be replaced with a similar u asset, and a…

A: Business organizations utilize actual resources as machines and gear to deliver labor and products.…

Q: Given the following model; Qd= a-50 P Qs= -100 + 20P

A: Demand function is the function which shows relationship between quantity demanded and price of a…

Q: Mullet Technologies – Bond Refunding (15th ed) Mullet Technologies is considering whether or not to…

A: What is Bond Refunding, and How Does It Work? Bond refunding refers to the practice of repaying…

Q: If Qd = 25 -5P and Qs = P. Then, the choke price is_______

A: Given:  Qd = 25 - 5P Qs = P

Q: Assume the purchase price of a combine is $250,000. It is estimated to have a salvage value of…

A: please find the answer below.

Q: A firm is considering the purchase of a new machine to increase the output of an existing production…

A: A B Initial Investment 14,000 65,000 Annual Cost 14,000 9,000 MV 8,000 13,000

Q: Plz correct option

A: Unemployment rate represents the percentage of the total labor force that is unemployed but are…

Q: A project with uncertainty is under consideration for implementation. The values are shown in the…

A:

Q: A firm is considering the purchase of a new machine to increase the output of an existing production…

A:

Q: MKBIC Systems is evaluating four projects A, B, C and D that have risks associated with the…

A: To find whether which project is the best alternative, we will add all the events of probability and…

Q: A firm is considering the purchase of a new machine to increase the output of an existing production…

A: We are going to apply repeatability assumption to make useful life of these projects equal and then…

Q: Who doesn't love food trucks? Imagine you are being offered to invest in a food truck as part of a…

A: Given information First cost=$100000 Salvage value=$5000 O& M cost =$5000 Overhaul cost=$20000…

Q: An American manufacturing company has new equipment with a first cost of $ 25,000, an estimated…

A: Given:- First cost=$25,000 Salvage value=$1500 Recovery period=9 years To calculate:- Book value at…

Q: A small manufacturing firm is considering the purchase of a new machine to modernize one of its…

A: The firm has three decision alternatives: To buy machine A To buy machine B To lease machine A To…

Q: A computer engineer is considering the purchase of a laptop whose operating characteristics are…

A: Fundamentally, engineering economics entails defining, estimating, and evaluating economic…

Q: 12. A Solar Sea Power Plant (SSPP) is being considered in a North American location known for its…

A: The term payback period refers to the amount of time it takes to recover the cost of an investment.…

Q: Improvement and expansion of a production facility are being given economic consideration. At the…

A: Given, There are three projects given A, B, and C and every project has three option @ 15% rate…

Q: a. A project costs $10 up front and has net benefits of $15 with probability 0.8 at the end of the…

A: Net present value (NPV) can be calculated by using the following formula.

Q: A copying machine has a useful life of 3 years and a salvage value of P 20,000 was bought for P…

A: Given: The cost of the machine was = P135,000 The salvage value is = P20,000 Useful life = 3 years…

Q: Who doesn't love food trucks? Imagine you are being offered to invest in a food truck as part of a…

A: Given information First cost=$100000 Salvage value=$5000 O& M cost =$5000 Overhaul cost=$20000…

Q: A VOM has a selling price of P 400. If its selling price is expected to decline at a rate of 10% per…

A: The formula used is: A=P(1-r)n where A is the selling price after n yearsP is the orignal selling…

Q: The following maintenance alternatives are considered for a new assembly line that has an a cost of…

A: Expected life = ∑Probability *Life  Regime  Service life by probability      Expected Life   0…