Question
In: Finance
Data for two machines is as shown below: Machine X Machine Y Initial Cost $125,000 $195,000...
Data for two machines is as shown below:
| Machine X | Machine Y | |
| Initial Cost | $125,000 | $195,000 |
| Life | 6 | 12 |
| Salvage | 12% | 12% |
| First year cost | $12,000 | $15,000 |
| Increase in cost per year | $1,000 | $1,000 |
| Rate (p.y.c.y.) | 5% | 5% |
Which of the following statements is TRUE if the price of Machine X is estimated to remain the same over the foreseeable future?
| A. |
The EUAC for both the machines is the same. |
|
| B. |
The EUAC of X is greater than that of Y by $3,600. |
|
| C. |
The EUAC of X is less than that of Y by $3,600. |
|
| D. |
The EUAC for the machines cannot be determined based on the information provided. |
Solutions
Expert Solution
Option C. The EUAC of X is less than that of Y by $3,600
jeff jeffy answered 3 years agoRelated Solutions
Data for two machines P and Q are as shown below. At what MARR will both...
Data for two machines P and Q are as shown below. At what MARR
will both machines be equally attractive for installation?
Machine P
Machine Q
Initial cost
$160,000
$315,000
Life in years
4
6
Inflation per year (for all costs)
3.00%
Benefit increase per year
6.00%
MARR per year compounded yearly
14.00%
Project life in years
12
First year estimated costs
$43,200
$72,450
First year estimated benefits
$83,200
$129,150
Salvage value of machine (% of initial cost)
13.50%
10.00%...
Consider the following data on x and y shown in the table below, x 2 4...
Consider the following data on x and y shown in the table
below,
x
2
4
7
10
12
15
18
20
21
25
y
5
10
12
22
25
27
39
50
47
65
Fit the model E(y)=β0+β1x to the data, and plot
the residuals versus x for the model on Minitab. Do you detect any
trends? If so, what does the pattern suggest about the model?
Given the net cash flow for two machines as shown below, what is the benefit cost...
Given the net cash flow for two machines as shown below, what is
the benefit cost ratio for the difference in the benefits and costs
for the higher initial cost machine and the lower initial cost
machine if the MARR is 12%?
Machine A
Machine B
Years
CF Costs
CF Benefits
CF Costs
CF Benefits
0
($67,000)
$0
($121,000)
$0
1
($17,600)
$65,000
($15,200)
$48,600
2
($72,458)
$65,000
($15,656)
$48,600
3
($18,672)
$65,000
($16,126)
$48,600
4
($76,871)
$65,000
($16,609)
$48,600...
A company plans to invest in one of the two machines. Machine X has capital cost...
A company plans to invest in one of the two machines. Machine X
has capital cost of $115,000 and annual operation & maintenance
cost is $6,000. Income is $45,000 per year. Machine Y will have an
initial cost of $105,000. The maintenance fee is $5,000 and the
revenue is $25,000 for each year. Both projects have 10 years life.
The salvage value is $5,000 for X and $6,000 for Y at the end of
its lifetime. Using Present Worth Analysis,...
The data shown below for the dependent variable, y, and the independent variable, x, have been...
The data shown below for the dependent variable, y, and the
independent variable, x, have been collected using simple random
sampling.
x
10
13
16
11
20
17
16
13
16
17
y
90
50
30
80
10
10
40
70
20
30
a.
Develop a simple linear regression equation for these data.
b.
Calculate the sum of squared residuals, the total sum of
squares, and the coefficient of determination.
c.
Calculate the standard error of the estimate.
d.
Calculate...
The data shown below for the dependent variable, y, and the independent variable, x, have been...
The data shown below for the dependent variable, y, and the
independent variable, x, have been collected using simple random
sampling. x 10 15 17 11 19 18 17 15 17 18 y 120 150 170 120 170 180
160 140 180 190 a. Develop a simple linear regression equation for
these data. b. Calculate the sum of squared residuals, the total
sum of squares, and the coefficient of determination. c. Calculate
the standard error of the estimate. d. Calculate...
For the data set shown below, complete parts (a) through (d) below. x y 20 102...
For the data set shown below, complete parts (a) through (d)
below. x y 20 102 30 95 40 91 50 81 60 68 (a) Use technology to
find the estimates of beta 0 and beta 1. beta 0 ~ b 0=_____(Round
to two decimal places as needed.) beta 1 ~ b 1=_____(Round to two
decimal places as needed.) (b) Use technology to compute the
standard error, the point estimate for o' (o with a little tag on
the top)...
The two data sets in the table below are dependent random samples. The population of (x−y)(x-y)...
The two data sets in the table below are dependent random
samples. The population of (x−y)(x-y) differences is approximately
normally distributed. A claim is made that the mean difference
(x−y)(x-y) is not equal to -23.5.
x
60
62
46
45
37
45
46
46
y
79
77
75
86
83
71
76
77
For each part below, enter only a numeric value
in the answer box. For example, do not type "z =" or
"t =" before your answers. Round...
The two data sets in the table below are dependent random samples. The population of (x−y)(x-y)...
The two data sets in the table below are dependent random
samples. The population of (x−y)(x-y) differences is approximately
normally distributed. A claim is made that the mean difference
(x−y)(x-y) is greater than 17.9.
x
67
79
68
52
56
78
78
78
y
30
50
32
49
31
51
37
35
For each part below, enter only a numeric value
in the answer box. For example, do not type "z =" or
"t =" before your answers. Round each...
X and Y are the future lifetimes of two machines. The joint PDF of the two...
X and Y are the future lifetimes of two machines. The joint PDF
of the two random variables is f(x, y) = 12(x+y+1)^-5, x>),
y>0. Calculate E(X|Y = 2).
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