answer 54 please
6-51 The manager in a canned food processing plant is trying to decide between two labeling machines. S5000 1500 Cost Uniform annual benefit Useful life, in years $18,000 6,000 Machine A Machine B 10 $15,000 1.600 $25,000 400 6-55 First cost Maintenance and operating costs Annual benefit Salvage value Useful life, in years 8,000 3,000 13.000 6,000 10 Assume an interest rate of 6%. Use annual cash flow analysis to determine which machine should be chosen. 6-52 A college student has been looking for new tires. The student feels that the warranty period is a good estimate of the tire life and that a 10% interest rate is appropriate. Using an annual cash flow analysis, which tire should be purchased? Tire Warranty (months) Price per Tire $39.95 36 59.95 69.95 90.00 A small manufacturing company is evaluating tru for delivering their products. Truck A has a first of $32,000, its operating cost will be $5500 per y and its salvage after 3 years will be $7000. Tn B has a first cost of $37.000, an operating cost SS200, and a resale value of $12.000 after 4 years. an interest rate of 12% which model should be e sen? Contributed by Hamed Kashani, Saeid Sac and Baabak Ashuri, Georgia Institute of Technol Dick Dickerson Construction, Inc. has asked to help them select a new backhoe. You have choice between a wheel-mounted version, wh costs $60,000 and has an expected life of 5 ye and a salvage value of S2000, and a track-moun one, which costs $80,000, with a 7-year life and expected salvage value of $10,000. Both machi will achieve the same productivity. Interest is & Which one will you recommend? Use an ann worth analysis. A job can be done with Machine A that costs $12,4 and has annual end-of-year maintenance costs $5000, its salvage value after 3 years is $2000. the job can be done with Machine B, which ce $15.000 and has end-of-year maintenance ce of $4000 and a salvage value of $1500 at the of 4 years. These investments can be repeated the future, and your work is expected to contir indefinitely. Use present worth, annual worth, a capitalized cost to compare the machines. The int est rate is 5%/year. Contributed by D. P. Lowe Cornell University Hospitality Enterprises is planning to build a m 112 room inn in Martin. The initial cost of la leases and construction is anticipated to be s million. The annual operating and maintenar costs are expected to average $25,000 for 1 20-year life of the inn. Every 4 years the inter of the inn must be painted at a cost of $15,000.1 exterior must be painted and refurbished every years at a cost of $60,000. The carpet and furniti must be replaced every 6 years at a cost of $100.0% Every 8 years $80,000 will be spent on paving a striping the parking areas. The inn will have a 6-53 Carp, Inc. wants to evaluate two methods of packag- ing their products. Use an interest rate of 15% and annual cash flow analysis to decide which is the most desirable alternative. First cost O&M costs (yr 1) + Cost gradient Annual benefit Salvage value Useful life, in years $700.000 18,000 +900/yr 154,000 142,000 10 $1,700,000 29,000 +750/ 303.000 210.000 654 The analysis period is 10 years, but there will be no replacement for Alternative B after 5 years. Based on a 15% interest rate, which alternative should be selected? Use an annual cash flow analysis
