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Your answer is partially correct. Please view the following video before answering this question. Click here to watch the video Click here to access the TVM Factor Table Calculator Parker County Community College (PCCC) is trying to determine whether to use no insulation or to use insulation that is either 1 inch thick or 2 inches thick on its steam pipes. The heat loss from the pipes without insulation is expected to cost $1.25 per year per foot of pipe. A 1-inch thick insulated covering will eliminate 89% of the loss and will cost $0.40 per foot. A 2-inch thick insulated covering will eliminate 93% of the loss and will cost $0.80 per foot. PCCC Physical Plant Services estimates that there are 250,000 feet of steam pipe on campus. The PCCC Accounting Office requires a 10%/year return to justify capital expenditures. The insulation has a life expectancy of 10 years. Show the internal rates of return used to make your decision: Comparison 1: No insulation versus 1-inch insulation IRR 1: 89 Comparison 2: 1-inch insulation versus 2-inch insulation IRR 2: 92 % Determine which insulation (if any) should be purchased using an internal rate of return analysis. 2-inch insulation Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is +0.2.Consider the following cash flow profile and assume MARR is 10%/year. EOY NCF -$80 $30 2 $30 3 $30 4 $30 5 $30 6 $30 Part a Determine the ERR for this project. % Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is +0.2.The Petersikfamily is considering purchasing a second home to use for short term rentals near the beach. If it purchases the house, they will place a down payment of $60,000 on the house. They estimate they will get an annual net rental prot of $9,500 after their mortgage and expenses are paid. After 18 years, they plan to pass the rental home along to their children, so assume the home has negligible salvage value. What would be the ERR if the Petersik family decides to invest in a rental home, assuming they keep the home for 18 years? Assume their MARR is 11%. Click here to access the TVM Factor Table calculator. 11.6 % Carry all interim calculations to 5 decimal places and then round your nal answer to 1 decimal place. The tolerance is $0.2. Should the Petersik family invest in the rental home? Yes V x Your answers are incorrect. A company is trying to decide whether it should upgrade a machine it has or purchase a newer version of the machine. It will need to use the machine for the next 4 years. If it upgrades the machine it already owns, this would cost $39,000; the machine it owns would cost $9,700 per year to operate and maintain. At the end of4 years, the machine would have a salvage value of $1,800. Alternatively, it could trade in the machine it owns for $13,000 and purchase a new machine for $94,000. The new machine would cost $2,400 per year to operate and maintain. At the end of 4 years, the machine would have a salvage value of $14,000. Assuming the company has a MARR of 8%, compute the EUAC of both the upgraded and new machine using the insider perspective. Click here to access the TVM Factor Table Calculator. EUACirebund $ mm $ Carry all interim calculations to 5 decimal places and then round your nal answers to a whole number. The tolerance i5 :5. Which alternative would you recommend? Trade in current machine and purchase a new one V Upgrade current machine 1 Either alternative is ne i Trade in current machine and purchase a new one . .- . Allen Construction purchased a crane 6 years ago for $130,000. They need a crane of this capacity for the next 5 years. Normal operation costs $35,000 per year. The current crane will have no salvage value at the end of 5 more years. Allen can trade in the current crane for its market value of $40,000 toward the purchase of a new one, which costs $150,000. The new crane will cost only $8,000 per year under normal operating conditions and will have a salvage value of $55,000 after 5 years. If MARR is 20%, determine which option is preferred. Click here to access the TVM Factor Table Calculator Parta x Your answer is incorrect. Use the cash ow approach (insider's viewpoint approach). Show the EUAC values used to make your decision: Keep existing crane: $ 65043 Replace with new crane: $ 65597 Carry all interim calculations to 5 decimal places and then round your nal answer to the nearest dollar. The tolerance is 1-10. Preferred option? Replace with new crane V X Your answer is incorrect. A semi-tractor costs $190,000. The driver of the truck plans to use the truck for 6 years, after which point it will have a salvage value of $30,000. The cost to operate and maintain the truck each year is $10,000. If the driver has a MARR of 6%, what is the capital recovery cost of the semi-tractor? Click here to access the TVM Factor Table Calculator. $ 44338 Carry all interim calculations to 5 decimal places and then round your nal answer to a whole number. The tolerance is :5