Your firm is thinking about investing $250,000 in the overhaul of a manufacturing cell in a lean environment. Revenues are expected to be $39,000 in year one and then increasing by $13,000 more each year thereafter. Relevant expenses will be$15,000 in year one and will increase by $7,500 per year until the end of the cell's nine-year life. Salvage recovery at the end of year nine is estimated to be $10,000. What is the annual equivalent worth of the manufacturing cell if the MARR is9% per year? N12345678910Single PaymentCompoundAmountPresentFactor Worth FactorTo Find FGiven PF/P1.09001.18811.29501.41161.53861.67711.82801.99262.17192.3674To Find PGiven FP/F0.91740.84170.77220.70840.64990.59630.54700.50190.46040.4224Discrete Compounding; i = 9%Uniform SeriesCompoundAmountFactorTo Find FGiven AFIA1.00002.09003.27814.57315.98477.52339.200411.028513.021015.1929PresentWorth FactorTo Find PGiven AΡΙΑ0.91741.75912.53133.23973.88974.48595.03305.53485.99526.4177SinkingFundFactorTo Find AGiven FA/F1.00000.47850.30510.21870.16710.13290.10870.09070.07680.0658CapitalRecoveryFactorTo Find AGiven PA/P1.09000.56850.39510.30870.25710.22290.19870.18070.16680.1558Uniform GradientGradientGradient UniformPresentSeriesFactorTo Find AGiven GA/G0.00000.47850.94261.39251.82822.24982.65743.05123.43123.7978Worth FactorTo Find PGiven GP/G0.00000.84172.38604.51137.111010.092413.374616.887720.571124.3728

Given that, Initial Cost = 250,000 Year 1 revenue = 39,000 and then increasing by 13,000 per year…

fracturing cell in a lean Revenues are expec be $39,000 in year one creasing by $13,000 more each year thereafter. Relevant expenses will Your firm is thinking about investing $250,000 in $15,000 in year one and will increase by $7,500 per year until the end of the cell's nine-year life. Salvage recovery at the end of year nine. estimated to be $10,000. What is the annual equivalent worth of the manufacturing cell if the MARR is 9% per year?

fracturing cell in a lean Revenues are expec be $39,000 in year one creasing by $13,000 more each year thereafter. Relevant expenses will Your firm is thinking about investing $250,000 in $15,000 in year one and will increase by $7,500 per year until the end of the cell's nine-year life. Salvage recovery at the end of year nine. estimated to be $10,000. What is the annual equivalent worth of the manufacturing cell if the MARR is 9% per year?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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