Question

QUESTION 3

For the below ME alternatives , which machine should be selected based on the PW analysis.

	Machine A	Machine B	Machine C
First cost, $	21,929	30000	10000
Annual cost, $/year	8,702	6,000	4,000
Salvage value, $	4,000	5,000	1,000
Life, years	3	6	2

Answer the below questions :

A- PW for machine A=

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QUESTION 4

For the below ME alternatives , which machine should be selected based on the PW analysis.

	Machine A	Machine B	Machine C
First cost, $	15000	28,881	10000
Annual cost, $/year	8,994	6,000	4,000
Salvage value, $	4,000	5,000	1,000
Life, years	3	6	2

Answer the below questions :

B- PW for machine B=

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QUESTION 5

1. For the below ME alternatives , which machine should be selected based on the PW analysis.

   	Machine A	Machine B	Machine C
   First cost, $	15000	30000	12,373
   Annual cost, $/year	15,805	6,000	4,000
   Salvage value, $	4,000	5,000	1,000
   Life, years	3	6	2

   Answer the below questions :

   C- PW for machine C =

D- Based on the PW value you got in the previous questions, which machine we should select? type you explanation below

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QUESTION 7

1. for th below two machines and based on CC analysis which machine we should select?

   	Machine A	Machine B
   First cost, $	28,321	100,000
   Annual cost, $/year	11,988	7,000
   Salvage value, $	5,755	-
   Life, years	3	infinite

   Answer the below question:

   A- the CC for machine A=

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QUESTION 8

1. For th below two machines and based on CC analysis which machine we should select?

   	Machine A	Machine B
   First cost, $	22,294	117,224
   Annual cost, $/year	14,745	7,540
   Salvage value, $	5,001	-
   Life, years	3	infinite

   Answer the below question:

   B- the CC for machine B=

Answer 1

Question No.3

Assumed i = 10% per year

PW of Machine A

Year	Cost	Annual Cost	Salvage Value	Total Cost	PVF @10%	Present Value
0	$21,929.00			$21,929.00	1.0000	$    21,929.00
1		$   8,702.00		$   8,702.00	0.9901	$      8,615.84
2		$   8,702.00		$   8,702.00	0.9803	$      8,530.54
3		$   8,702.00	$    -4,000.00	$   4,702.00	0.9706	$      4,563.71
				Total Cost		$    43,639.09

PW of Machine A = $43,639.09

Question 4

Year	Cost	Annual Cost	Salvage Value	Total Cost	PVF @10%	Present Value
0	$28,881.00			$28,881.00	1.0000	$    28,881.00
1		$   6,000.00		$   6,000.00	0.9901	$      5,940.59
2		$   6,000.00		$   6,000.00	0.9803	$      5,881.78
3		$   6,000.00		$   6,000.00	0.9706	$      5,823.54
4		$   6,000.00		$   6,000.00	0.9610	$      5,765.88
5		$   6,000.00		$   6,000.00	0.9515	$      5,708.79
6		$   6,000.00	$    -5,000.00	$   1,000.00	0.9420	$         942.05
				Total Cost		$    58,943.63

PW of Machine B = $58,943.63

Question 5

Year	Cost	Annual Cost	Salvage Value	Total Cost	PVF @10%	Present Value
0	$12,373.00			$12,373.00	1.0000	$    12,373.00
1		$   4,000.00		$   4,000.00	0.9901	$      3,960.40
2		$   4,000.00	$    -1,000.00	$   3,000.00	0.9803	$      2,940.89
				Total Cost		$    19,274.28

PW of Machine C = $19,274.28

Based on PW Value Machine -C should be selected since the cost of Machine is less.

Please post the other Questions seperately, we can answer the same as well. All the best :)