A piece of production equipment is to be replaced immediately because it no longer meets quality requirements for the en

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A Piece Of Production Equipment Is To Be Replaced Immediately Because It No Longer Meets Quality Requirements For The En 1 (46.6 KiB) Viewed 14 times

A piece of production equipment is to be replaced immediately because it no longer meets quality requirements for the end product. The two best alternatives are a used piece of equipment (E1) and a new automated model (E2). The economic estimates for each are shown in the accompanying table. The MARR is 12% per year. Capital investment Annual expenses Useful life (years) Market value (at the end of useful life) Alternative E1 E2 $13,000 $65,000 $14,000 $8,000 20 $13,000 5 $7,500

N 123 4567 ∞ a 2 8 9 10 11 12 13 14 15 16 17 18 19 20 Single Payment Compound Amount Present Factor Worth Factor To Find F Given P F/P 1.1200 1.2544 1.4049 1.5735 1.7623 Discrete Compounding; i = 12% Compound Amount Factor 1.9738 2.2107 2.4760 2.7731 3.1058 3.4785 3.8960 4.3635 4.8871 5.4736 6.1304 6.8660 7.6900 8.6128 9.6463 To Find P Given F P/F 0.8929 0.7972 0.7118 0.6355 0.5674 0.5066 0.4523 0.4039 0.3606 0.3220 0.2875 0.2567 0.2292 0.2046 0.1827 0.1631 0.1456 0.1300 0.1161 0.1037 To Find F Given A FIA 1.0000 2.1200 3.3744 4.7793 6.3528 8.1152 10.0890 12.2997 14.7757 17.5487 20.6546 24.1331 28.0291 32.3926 37.2797 42.7533 48.8837 55.7497 63.4397 72.0524 Uniform Series Present Worth Factor To Find P Given A P/A 0.8929 1.6901 2.4018 3.0373 3.6048 4.1114 4.5638 4.9676 5.3282 5.6502 5.9377 6.1944 6.4235 6.6282 6.8109 6.9740 7.1196 7.2497 7.3658 7.4694 Sinking Fund Factor To Find A Given F A/F 1.0000 0.4717 0.2963 0.2092 0.1574 0.1232 0.0991 0.0813 0.0677 0.0570 0.0484 0.0414 0.0357 0.0309 0.0268 0.0234 0.0205 0.0179 0.0158 0.0139 Capital Recovery Factor To Find A Given P A/P 1.1200 0.5917 0.4163 0.3292 0.2774 0.2432 0.2191 0.2013 0.1877 0.1770 0.1684 0.1614 0.1557 0.1509 0.1468 0.1434 0.1405 0.1379 0.1358 0.1339

a. Which alternative is preferred, based on the repeatability assumption? The AW of the alternative E1 is $ Round to the nearest hundreds.) The AW of the alternative E2 is $ Which alternative is preferred? Choose the correct answer below. Alternative E2 Alternative E1 Round to the nearest hundreds.) b. Which alternative is preferred, based on the coterminated assumption with a five-year study period and an imputed market value for the Alternative E2? The AW of the alternative E2 is $ - (Round to the nearest hundreds.) Which alternative is preferred? Choose the correct answer below. Alternative E2 Alternative E1