Question
1. Two methods can be used for injection molding insulin injection pens. Method A Molding costs $120,000 initially and will have a $30,000 salvage value
1. Two methods can be used for injection molding insulin injection pens. Method A Molding costs $120,000 initially and will have a $30,000 salvage value after 5 years. The operating cost with this method will be $20,000 per year. Method B Molding will have a first cost of $150,000, an operating cost of $15,000 per year, and a $40,000 salvage value after its 6 - year life. Determine which method should be selected at a MARR of 10%.
- Use Annual Worth Analysis
2. Two methods can be used for injection molding insulin injection pens. Method A Molding costs $120,000 initially and will have a $30,000 salvage value after 5 years. The operating cost with this method will be $20,000 per year. Method B Molding will have a first cost of $150,000, an operating cost of $15,000 per year, and a $40,000 salvage value after its 6 - year life. Determine which method should be selected at a MARR of 10%.
- Use Present Worth Analysis
3. How much is the FIRST year's interest for the following car loan? Total Amount borrowed = $18,000, Loan Term = 5 years, Interest Rate = 3% per year coupounded monthly, loan payment = monthly.
4. What is the capitalized cost of the project with interest rate 10% per year compounded monthly? The proposed payment schedule is $400,000 now, $200,000 five years from now, $5,000 every 10 years and an annual amount of $6,000 beginning 12 years from now and continuing indefinitely.
All solved in Excel
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