Two alternative pumps are being compared. Pump A costs $5200, will save $1275 per year in...

Two alternative pumps are being compared. Pump A costs $5200, will save $1275 per year in operating and maintenance expenses, and is expected to last 6 years. Pump B costs $6000, will save $1550 per year, and is also expected to last for 6 years. If the cost of capital is 12%, which has the better discounted payback period? no excel

Expert Solution

jeff jeffy answered 2 years ago

Two alternative pumps are being compared... Pump A costs $4000, will Save $1200 per year in...

Two alternative pumps are being compared... Pump A costs $4000, will Save $1200 per year in operating and maintenance, and is expected to last 6 years Pump A costs $4800, will Save $1400 per year in operating and maintenance, and is expected to last 6 years If the cost of capital is 16%, which alternative has the better discounted payback period.? Do not post excel sheet, i need equations to follow the work

Two alternative pumps are being compared. Pump A costs $4000, will save $1200 per year in...

Two alternative pumps are being compared. Pump A costs $4000, will save $1200 per year in operating and maintenance expenses, and is expected to last for 6 years. Pump B costs $4800, will save $1400 per year, and is also expected to last for 6 years. If the cost of capital is 16%, which has the better discounted payback period?

Alternative A has fixed initial costs of $ X per year and variable costs of $45...

Alternative A has fixed initial costs of $ X per year and variable costs of $45 per unit. Alternative B has fixed costs $20,000 per year and variable costs of $30 per unit. Determine the value of X, if the breakeven quantity is 900. Assume there is no any other cost.

Toledo Pump Company manufactures two different types of pumps: centrifugal and displacement. The Company uses an...

Toledo Pump Company manufactures two different types of pumps: centrifugal and displacement. The Company uses an activity-based costing system to allocate production overhead costs. The following are the estimated cost data for the period. The number of units to be produced during the period are Centrifugal 1,800 units; Displacement 1,200 units. Raw materials and direct labor costs per unit are as follows: Direct Costs per Unit Centrifugal Displacement Raw Materials (cost per unit) $120 $160 Direct Labor (cost per unit)...

Two kinds of thread are being compared for strength.

A. Two kinds of thread are being compared for strength. Fifty pieces of each type of thread are tested under similar conditions. Brand A had an average: tensile strength of 78.3 kilograms with a standard deviation of 5.6 kilograms, while brand B had an average tensile strength of 87.2 kilograms with a standard deviation of 6.3 kilograms. Construct a 95% confidence interval for the difference of the population means.B. In a hatch chemical process, two catalysts arc being compared for...

A specialized automatic machine costs $100,000 and is expected to save $19,700 per year while in...

A specialized automatic machine costs $100,000 and is expected to save $19,700 per year while in operation. Using a 5 % interest rate, what is the discounted payback period (in years).

Two semiconductor factories are being compared to see if there is a difference in the average...

Two semiconductor factories are being compared to see if there is a difference in the average defect rates of the chips they produce. In the first factory, 250 chips are sampled. In the second factory, 350 chips are sampled. The proportions of defective chips are 4.0% and 6.0%, respectively. Using a confidence level of 95%, which of the following statements is supported by the data? Group of answer choices There is not sufficient evidence to show a significant difference in...

Two pumps are being considered for service in Africa. Each can draw water from a depth...

Two pumps are being considered for service in Africa. Each can draw water from a depth of 39 meters and both pumps deliver 60 horsepower (output) to the pumping operation. One of the pumps must be selected. It is expected that the pump will be in use 600 hours per year. The following data are available. LOADING... Click the icon to view the alternatives description. If electricity costs $0.16 per kilowatt-hour, which pump should be selected if the MARR is...

Two catalysts in a batch chemical process, are being compared for their effect on the output...

Two catalysts in a batch chemical process, are being compared for their effect on the output of the process reaction. A sample of 12 batches was prepared using catalyst 1, and a sample of 10 batches was prepared using catalyst 2. The 12 batches for which catalyst 1 was used in the reaction gave an average yield of 85 with a sample standard deviation of 4, and the 10 batches for which catalyst 2 was used gave an average yield...

Two mutually exclusive alternative are being considered. Both have lives of 10 years. Alternative A has...

Two mutually exclusive alternative are being considered. Both have lives of 10 years. Alternative A has a fist cost of $10,000 and annual benefits of $4500. Alternative B costs $25,000 and has annual benefits of $8800. If the minimum attractive rate of return is 6%, which alternative should be selected? Solve the problem by a) Present worth analysis. b) Annual cash flow analysis. c) Rate of return analysis.

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