Required information Problem 05.030 DEPENDENT MULTI-PART PROBLEM - ASSIGN ALL PARTS An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $33,000, an annual operating cost (AOC) of $4,000, and a service life of 2 years. Method B will cost $76,000 to buy and will have an AOC of $3,500 over its 4-year service life. Method C costs $143,000 initially with an AOC of $6,000 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 12% of its first cost. Problem 05.030.b Future Worth Analysis Perform a present worth analysis to select the method at i = 13% per year. The present worth of method A is $ The present worth of method B is $ The present worth of method C is $ Method (Click to select) v is selected.

Required information Problem 05.030 DEPENDENT MULTI-PART PROBLEM - ASSIGN ALL PARTS An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $33,000, an annual operating cost (AOC) of $4,000, and a service life of 2 years. Method B will cost $76,000 to buy and will have an AOC of $3,500 over its 4-year service life. Method C costs $143,000 initially with an AOC of $6,000 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 12% of its first cost. Problem 05.030.b Future Worth Analysis Perform a present worth analysis to select the method at i = 13% per year. The present worth of method A is $ The present worth of method B is $ The present worth of method C is $ Method (Click to select) v is selected.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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! Required information An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $40,000, an annual operating cost (AOC) of $12,000, and a service life of 2 years. Method B will cost $70,000 to buy and will have an AOC of $6,000 over its 4-year service life. Method C costs $125,000 initially with an AOC of $3,500 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 7% of its first cost. Perform a present worth analysis to select the method at /= 12% per year. The present worth of method A is $ The present worth of method B is $ The present worth of method C is $ ✓is selected. Method C
! Required information An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $41,000, an annual operating cost (AOC) of $13,000, and a service life of 2 years. Method B will cost $82,000 to buy and will have an AOC of $4,500 over its 4-year service life. Method C costs $117,000 initially with an AOC of $4,500 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 9% of its first cost. Perform a future worth analysis to select the method at i = 8% per year. The future worth of method A is $ 65,832.64 The future worth of method B is $ 98,183.44 The future worth of method C is $ 157,622.43 > Method с Return to question is selected.
! Required information An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $31,000, an annual operating cost (AOC) of $5,000, and a service life of 2 years. Method B will cost $71,000 to buy and will have an AOC of $3,500 over its 4-year service life. Method C costs $117,000 initially with an AOC of $3,500 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 7% of its first cost. Perform a present worth analysis to select the method at i = 9% per year. The present worth of method A is $ -114,678.6 The present worth of method B is $ -140,668.2 The present worth of method C is $ -132261.24 Method A is selected.
Chambers Company has just gathered estimates forconducting a break-even analysis for a new product.Variable costs are $7 a unit. The additional plant willcost $48,000. The new product will be charged $18,000a year for its share of general overhead. Advertisingexpenditures will be $80,000, and $55,000 will be spenton distribution. If the product sells for $12, what is thebreak even point in units? What is the break even pointin dollar sales volume?
9. A machine part can be exhausted either from aluminum or steel. There is an order of 8,000 units.Steel costs 3.80Php/kg, while aluminum cost 8.70Php/kg. If steel is used, the steel per unit weighs110g and 30g for aluminum. In production, steel is 50 units/hr and 80units/hr with an aid of a toolcosting 640Php, which will be useless after the 8,000 units are finished. The cost of the machineoperator is 10.80Php/hr. if all other costs are identical, which material is more economical?
Kaneb is evaluating two alternative pipeline welders. Welder A costs $310,000, has a 7-year life, and is expected to generate net cash inflows of $78,000 in each of the 7 years. Welder B costs $320,000, has a 5-year life, and is expected to generate annual net cash inflows of $68,900 in each of the 5 years. Kaneb's cost of capital is 16%. Using the equivalent annual annuity method, which alternative should be chosen and what is its NPV?
Required information An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $38,000, an annual operating cost (AOC) of $10,000, and a service life of 2 years. Method B will cost $79,000 to buy and will have an AOC of $3,000 over its 4-year service life. Method C costs $143,000 initially with an AOC of $3,000 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 6% of its first cost. Perform a future worth analysis to select the method at i= 13% per year. The future worth of method A is $55118 The future worth of method B is $ The future worth of method C is $ Method B is selected.
Precision Engineering Factory consumes 50,000 units of a component per year. The ordering, receiving and handling costs are Rs 3 per order while the trucking costs are Rs 12 per order. Further details are as follows: deterioration and obsolescence cost Rs 0.004 per unit per year; interest cost Re 0.06 per unit per year; storage cost Rs 1,000 per year for 50,000 units. Calculate the economic order quality.
The fixed costs at Harley Motors are $1million annually. The main product hasrevenue of $8.50 per unit and $4.25 variablecost. Determine the following.(a) Breakeven quantity per year.(b) Annual profit if 200,000 units are soldand if 350,000 units are sold. 2. For the estimates below, calculate thefollowing.(a) Breakeven quantity per month.(b) Profit (loss) per unit at sales levelsthat are 10% above and 10% belowbreakeven.r = $39.95 per unit v = $24.75 per unitFC =$4,000,000 per year
Help....... Solve Write Company has a maximum capacity of 200,000 units per year. Variable manufacturing costs are $12 per unit. Fixed overhead is $600,000 per year. Variable selling and administrative costs are $5 per unit, and fixed selling and administrative costs are $300,000 per year. The current sales price is $23 per unit. A. What is the breakeven point in (a) sales units and (b) sales dollars? B. How many units must the Write Company sells to earn a profit of $240,000 per year?
Required information Poly-Chem Plastics is considering two types of injection molding machines: hydraulic and electric. The hydraulic press (HP) will have a first cost of $675,000, annual costs of $200,000, and a salvage value of $70,000 after 5 years. Electric machine technology (EMT) will have a first cost of $800,000, annual costs of $150,000, and a salvage value of $130,000 after 5 years. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Use an AW-based equation to determine the ROR on the extra investment required for the EMT alternative. The ROR on the extra investment for the EMT alternative is
ENGINEERING ECONOMY RATE WILL BE GIVEN. WRITE THE COMPLETE SOLUTIONS/EXPLANATION LEGIBLY OR TYPEWRITTEN. GIVE STRAIGHT TO THE POINT EXPLANATION. A tire manufacturer produces tires at a variable cost of $25 per unit. The plant has annual sales of $480,000 at a price of $40 per unit. Find the breakeven point in units of production. The annual fixed costs for the plant are $150,000.