Locations under consideration for a border patrol station have their costs estimated by the federal government. Use the B/C ratio method at an interest rate of 11% per year to determine which location to select, if any. Location North N South S Initial Cost, $ 1,360,000 2,900,000 Annual Cost, $ per Year 480.000 365,000 Disbenefits, $ per Year 70,000 24,000 Life, Years 00 The AB/C ratio is Select location N
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- 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-ENational homebuilders Inc plans to purchase new rain gutter forming equipment. Two manufacturers offered the following estimates, First Cost, $ Annual Operating Cost, $/year Salvage Value, $ Life, years Vendor A 15,000 3500 1000 6 Vendor B 18,000 3100 2000 9 a. Determine which vendor should be selected on the basis of a PW comparison, if the MARR is 15% per year. b. National Homebuilders has a standard practice of evaluating all options over a 5-year period. If a study period of 5 years is used and the salvage values are not expected to change, which vendor should be selected?In most engineering economy studies, the best alternative is the one which:a. Will last the longest timeb. Is the easiest to implementc. Costs the leastd. Is the most politically correct
- A buyer placed an initial order with a supplier named Ronco that makes brake assenblies. The order was for 100 pieces at a per-unit price of $281. The buyer collected the following costs from Ronco: Direct Matevial Costs $100/mit Direct Labor Costs $50/unit (5 hours/unit at $10/hour labor rate Overhead Costs $75/anit Icalculated at 150% of direct labor) Total Costs of Goods Sold $225/unit Seller's Profit (25% of total $56 cost makup Total price per unit $281 At 200 units, what should the buyer erpect to pay for these units whon factoring in a 20 productivity ienprovenent deaning atai O Not enou Information avalable O 1250un O $266.75nicCompare the alternatives below using AW and i = 10% per year D -350,000 -35,000 35,000 ∞ First Cost, $ Annual operating cost, $/year Salvage value, $ Life, years с -150,000 - 10,000 15,000 10A diagram is needed for (a) and (b)
- A start-up chemical company has an average cost of capital of 15% per year.Additionally, it has a long-term goal of making at least a 20% per year rate of return onall investments; however, because of market opportunity the ROR can be reduced for thecurrent project by 3%. If the company acquired $50 million in venture capital, how muchdid it have to earn in the first year?Interest is a manifestation of what general concept in engineering economy?Discuss the importance of alternative identification in the engineering economic process.
- In decision making process, the most important role of engineering economist is to define feasible alternatives. Select one: True FalseAn engineer has the option of deciding the number of turbines for the power plant he/she works at. Fixed costs and potential power output range are as follows: Number of Turbines Total annual Corresponding power fixed cost (USD) output range (MW) 1 9600 0-300 2 15000 301-600 3 20000 601-900 Variable cost is 10 USD/MW and revenue is 40 USD/MW The breakeven point for 1-turbine system is: MW The breakeven point for 2-turbine system is: MW The breakeven point for 3-turbine system is: MW If the demand is below 300 MW, does it make sense to build a turbine? If the demand is 580 MW, how many turbines are needed? If the demand is 620 MW, would you use the 3-turbine system? If projected annual demand is between 580 and 660 MW, how many turbines should be built?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 annualmaintenance 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 PlanA = (2 decimal placesCC Plan B = (2 decimal places)