9 Concurris Prototyping is committed to using the newest and finest equipment in its labs. Accordingly, Wilma, a senior engineer, has recommended that a 2-year-old piece of precision measurement equipment be replaced immediately. She believes it can be demonstrated that the proposed equipment is economically advantageous at a 15%-per year return and a planning horizon of 5 years. Perform the replacement analysis using the annual worth method, a 5-year study period, and the estimates below. Was Wilma correct? Equipment Current Proposed Original purchase price, $ -30,000 -41,000 02:48:38 Current market value, $ 15,000 Remaining life, years 5 15 Estimated value in 5 years, $ 7.000 10,000 Salvage value after 15 years, $ 5,000 AOC, $ per year -12,000 -3,000 The AW of the defender is $- and the AW of the challenger is $-[ Wilma (Click to select) correctIf the inflation rate is 6% per year, how many (future) dollars will be required 10 years from now to buy the same things that 10 $41,500 buys now? The (future) dollars required to buy the same things that $41,500 buys now is $ 02:40:3311 Required information How much money can the Eastman Land and Cattle Company afford to spend now for a tractor trailer in lieu of spending $59,000 three years from now, if the interest rate is 13% per year and the inflation rate is 5.1% per year? 3 02:48:28 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Solve by factors. The Eastman Land and Cattle Company can afford to spend $O 12 Required information As indicated, some of the cash flows are expressed in future (then-current) dollars and others in current-value (today's) dollars. Use a real interest rate of 10% per year and an inflation rate of 6% per year. 3 02:48:22 Year Cash Flow. $ Expressed As O 17.500 Today's 3 38,500 Then-current 4 20,500 Then-current 28,500 Today's NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Find the present worth of the estimated cash flows. The present worth of the estimated cash flows is $Cyber Manufacturing is purchasing a complete video borescope system for applications that require work in places that eyes cannot 13 see. The purchase price is $7,700, shipping and delivery is $300, installation cost is $1,350, tax recovery period is 5 years, book depreciation period is 10 years, salvage value is estimated to be $500, and operating cost (with technician) will be $45,000 per year. For MACRS depreciation of the system, what are the values of basis (B), salvage value (S), and recovery period (n)? The value of basis is $ 02.48:18 The salvage value is $ The recovery period is years14 Required information Equipment for immersion cooling of electronic components has an installed value of $185,000 with an estimated trade-in value of $37.500 after 15 years. 8 02:48:12 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. For years 2 and 10, use DDB book depreciation to determine the depreciation by equations The depreciation in the second year is $[ The depreciation in the tenth year is $15 Required information An engineer with Accenture was asked by her client to help understand the difference between DDB and 150% DB depreciation. Answer his questions if original (8) - $170,000. depreciable life (m) # 12 years, and salvage value (S) = $24,000 2 02-48:07 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Which of the two methods, when calculated correctly considering $ $24.000. write off more of the first cost over the 12 years? Multiple Choice O DB method O DDB method8 A piece of equipment that was purchased 2 years ago by Toshiba Imaging for $50,000 was expected to have a useful life of 5 years with a $5000 salvage value. Its performance was less than expected, and it was upgraded for $20,000 one year ago. Increased demand now requires that the equipment be upgraded again for another $11,500 so that it can be used for 3 more years. If upgraded, its M&O costs will be $33,000 and it will have a $13,500 salvage after 3 years. Alternatively, it can be replaced with new equipment priced at $65,000 with M&O costs of $14,000 per year and a salvage value of $23,000 after 6 years. If replaced now, the existing equipment will be sold for $7000. Determine the values of P. S, M&O, and n for the defender in a replacement study. 02:48:43 The value of Pis $-[ The value of Sis $ The value of M&O is $- per year. The value of n is years