Question: An engineer must recommend one of two rapid prototyping machines for integration into an upgraded manufacturing line. She obtained estimates from salespeople from two companies.

An engineer must recommend one of two rapid prototyping machines for integration into an upgraded manufacturing line. She obtained estimates from salespeople from two companies. Salesman A gave her the estimates in constant-value (today's) dollars, while saleswoman B provided the estimates in future (then-current) dollars. The company's MARR is equal to the real rate of return of 20% per year, and inflation is estimated at 4% per year. Use PW analysis to determine which machine the engineer should recommend.

Step by Step Solution

★★★★★

3.47 Rating (173 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Use the real i for salesman A and inflated if for Sale... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

217-B-E-M (1553).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

An environmental engineer must recommend one of two methods for monitoring high colony counts of E. coli and other bacteria in watershed area hot spots. Estimates are tabulated, and the MARR is 10%...

An assistant to Stacy gave her the PW values for four alternatives they are comparing for the development of a remote control vibration control system for offshore platform application. The results...

Use the PW method at 8% per year to select up to three projects from the four available ones if no more than $20,000 can be invested. Estimated lives and annual net cash flowsvary. Initial Net Cash...

Hand written solution and an explanation is required, do NOT use Excel functions to solve. An engineer must recommend one of two rapid prototyping machines for integration into an upgraded...

Problem 5 ( 15 points) An engineer must recommend one of two rapid prototyping machines for integration into an upgraded manufacturing line. She obtained estimates from salespeople from two...

3. An engineer must recommend one of two rapid- prototyping machines for integration into an up- graded manufacturing line. She obtained estimates from salespeople from two companies. Salesman A gave...

9. An engineer must recommend one of two machines for integration into an upgraded manufacturing line. She obtains estimates from two salespeople. Salesman A gives her the estimates in future...

An engineer must recommend one of two machines for integration into an upgraded manufacturing line. She obtains estimates from two salespeople. Saleswoman A gives her the estimates in future...

HBSP Product Number TCG 333 THE CRIMSON PRESS CURRICULUM CENTER THE CRIMSON GROUP, INC. Note on Strategic DecisionMaking in Healthcare Organizations During the next several decades, healthcare...

Use Excel to answer MC- 4. Round to the nearest dollar.

Cooperative Games (e-Nash) 10 points (i) = 10 V i v(12) = 40, v(13) = 30,v(23) = 25, v(123) = 70 a) Find the reasonable set and core for above imputations b) What is the least core? c) What is the...

1 . Which of the following disclosures provides investors and stakeholders with reliable, relevant, useful, and transparent financial and nonfinancial information for making sound decisions? a ....

Assume you have to design a study that will examine why some people vote in national elections while others do not. Name two independent variables that would be appropriate to use in this study. What...

A sum of money Q will be received 6 years from now. At 5% annual interest the present worth now of Q is $60. At the same interest rate, what would be the value of Q in 10 years?

In 1995 an anonymous private collector purchased a painting by Picasso entitled Angel Fernandez De Soto for $29,152,000. The picture depicts Picasso's friend Desoto seated in a Barcelona cafe...

(a) If $100 at Time "0" will be worth $110 a year hence and was $90 a year ago, compute the interest rate for the past year and the interest rate next year. (b) Assume that $90 invested a year ago...

The executive management team of Damrin Company is discussing their budget for the next year. They decided to break into two smaller teams to provide sales estimates for the larger group to consider....

Sales of Sony Blu-Ray Disc Players at Bob's Appliance Mart 1,000 812 800 601 600 400 200 Last Year This Year (a) What kind of display is this? O Line chart O Column chart with pictures for columns...

Create a stack visualization using JavaScript as per the following requirements and UI guideline. Submit one HTML file only with the name your-name.html . On startup, the stack should be empty (see...