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A delivery car had a first cost of $26,000, an annual operating cost of $13,000, and an estimated $4000 salvage value after its 6year life.
A delivery car had a first cost of $26,000, an annual operating cost of $13,000, and an estimated $4000 salvage value after its 6year life. Due to an economic slowdown, the car will be retained for only 3 years and must be sold now as a used vehicle. At an interest rate of 13% per year, what must the market value of the used vehicle be in order for its AW value to be the same as the AW if it had been kept for its full life cycle? The market value of the used vehicle is determined to be $ |:|. White Oaks Properties builds strip shopping centers and small malls. The company plans to replace its refrigeration, cooking, and HVAC equipment with newer models in one entire center built 9 years ago. 9 years ago, the original purchase price ofthe equipment was $675,000 and the operating cost has averaged $245,000 per year. Determine the equivalent annual cost of the equipment ifthe company can now sell it for $194,000, The company's MARR is 23% per year. The equivalent annual cost of the equipment is determined to be $ . Required information The Briggs and Stratton Commercial Division designs and manufacturers small engines for golf turf maintenance equipment. A robotics-based testing system with support equipment will ensure that their new signature guarantee program entitled "Always Insta-Start" does indeed work for every engine produced. Pull System Push System First cost of $-1,500,000 $-2,250,000 equipment AOC per Year $-700,000 $-600,000 Salvage Value $100,000 $50,000 Estimated Life 8 years 8 years Compare the annual worth of the two systems at MARR = 10% per year. Select the better system. The (Click to select) | is determined to be the better system
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