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1.) What are the 3 assumptions that must be considered when using the LCM approach in comparing PW of different
life alternatives?
Question 2 in image, thank you.
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- A company is going to buy a new machine for manufacturing its products. Five machines are available. Data is as follows: A B C D E First Cost 25,200 31,800 38,500 46,600 52,500 Power per year 1,300 1,450 2,600 2,300 2,300 Labor per year 10,500 9,200 6,200 3,900 2,350 Maintenance per year 2,800 1,800 1,400 1,300 850 Taxes per year 3% 3% 3% 3% 3% Life, years 5 5 5 5 5 If money is worth 15% before taxes to the company, which machine should be chosen? Use Annual Cost MethodBVM manufactured and sold 25,000 small statues this past year. At that volume, the firm was exactly in a breakeven situation in terms of profitability. BVM’s unit costs are expected to increase by 30% next year. What additional information is needed to determine how much the production volume/sales would have to increase next year to just break even in terms of profitability? (a) Costs per unit (b) Sales price per unit and costs per unit (c) Total fixed costs, sales price per unit, and costs per unit (d) No data is needed, the volume increase is 25, 000 + 25, 000(0.30) = 32, 500 units.2-A company has requested price offers from two companies for the equipment they will purchase. Estimated cash flows based on the price offers of both companies are as follows. MCFO = %10 А В Initial investment cost,$ -1500000 -2250000 Annual operating cost, $ -700000 -600000 Scrap value, $ Service Life, $ 100000 50000 8 8 a)Using Annual Value Analysis, find out which option will be more economical. b) Solve with esent value analysis.
- 2-17 Consider the accompanying breakeven graph for an investment, and answer the following questions. $40 $35 $30 Total Revenue $25 $20- Total Cost $15 $10 -- $5 $0 0. 250 500 750 1000 1250 1500 1750 Output (units/year) (a) Give the equation for total revenue for x units per year. (b) Give the equation for total costs for x units per year. (c) What is the "breakeven" level of x? :11 ou hove a Dollars (X104)Question 5: A metallurgical engineer is considering two materials for use in a space vehicle. All estimates are made. (a) Which should be selected on the basis of a present worth comparison at an interest rate of 12% per year? Vishes First cost, $ Maintenance cost, $ per year Salvage value, $ Life, years Material X Material Y -15,000 -35,000 -9,000 2,000 -7,000 20,000 5 5Question 3 low-cost range for multiple alternatives. variable location fixed cost cost/unit elm 125 .01 ferry 50 .03 getty 75 .02 if expected output is 4000, the best alternative if quantity is 7000 is location
- Golf International Division designs and manufactures small engines for golf turf maintenance equipment. A robotics-based testing system with support equipment will ensure that their new signature guarantee program entitled "Always Insta-Start" does indeed work for every engine produced. (a) Compare the annual worth of the two systems at MARR = 10% per year. Select the better system. Construct the cash flow diagram. (b) Determine the salvage value for the T System that will make the company indifferent between the two systems.ENGINEERING ECONOMY RATE WILL BE GIVEN. WRITE THE COMPLETE SOLUTIONS/EXPLANATION LEGIBLY OR TYPEWRITTEN. GIVE STRAIGHT TO THE POINT EXPLANATION. The world price of zinc has increased to the point where “moth balled” zinc mines in east Tennessee have been reopened because of their potential profitability. (a) What is the estimated annual profit for a mine producing 20,000 tons per year (which is at 100% capacity) when zinc sells for $1.00 per pound? There are variable costs of $30 million at 100% capacity and fixed costs of $10 million per year. (b) If production is 21,000 tons per year, will the mine be profitable?For the below ME alternatives, which machine should be selected based on the PW analysis. MARR-10% First cost, $ Annual cost, $/year Salvage value, $ Life, years Machine A Answer the below questions: A- PW for machine A 27,500 8,282 4,000 Machine B 30000 6,000 5,000 Machine C 10000 4,000 1,000
- The data provided by a company for the year 2021 - 2022 to carry out Break Even Analysis. Provide the results, complete analysis and suggestions. The data is as follows: The fixed cost of the year is 80000.0 R.O The estimated sales are 400000.0 R.O Material Cost / unit 10.0 R.O Production cost / unit 1S 20.0 R.O Transportation & other Misc Cost / unit (Approx) 5.00 R.O Marketing and advertisement cost / unit 3 R.O Each unit is sold at price 50.0 R.O 1. Construct the B.E.P chart on a graph sheet and indicate, B.B.P, M.o.s. 2. Indicate B.E.P & M.o.S after the improvement measures has been taken (With different colours). 3. Determine the profit before and after the measures taken.7 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)A seasonal bus tour firm has 5 buses with a capacity of 60 people each. Each customer pays $25 for a one-day tour. Records show $360,000 in fixed costs per season, incremental costs of $5 per customer, and an average daily occupancy of 80%. The number of days of operation necessary each season to break even is closest to which value? (a) 50 days (b) 75 days (c) 100 days (d) 120 days?