kindly solve these problems
The cost characteristics of a CO testing machine at Dytran Instruments are shown below. The cost of a new fester is $100,000. The equation for determin- ing the AW of keeping the tester for 2 years is: (a] AW = -100,1004/PAS) - [42,010(P/F,1) + 4700(P/F31 4/PS) +40,000(4/F,5) (8) AW = -100,000(4/P12) - [42000(P/F,1) + 47000(P/F12)](4/P13) + 4000(4/F 2) (C) AW = -100,000(4/242) - 47,000 () AW = -100,000(4/243) - 42,000 Machine Age, MBO Costs, Salvage Value Years $ per Year at End of Wear, $ -42,000 -47.0DO -49.000 31,000 -90,000 24,030 -52,000 15 030 -54,000 -63,000 -67,000We continue with the progressive example of possibly replacing a kiln at B&T Enterprises. A marketing study revealed that the improving business activity on the west coast implies that the revenue profile between the installed kiln (PT) and the proposed new one (GH) would be the same, with the new kiln possibly bringing in new revenue within the next couple of years. The president of B&T decided it was time to do a replacement study. Assume you are the lead engineer and that you previously completed the ESL analysis on the challenger (Exam- ple 11 3) It indicates that for the GH system the ESL is its expected useful life. Challenger: ESLA = 12 years with total equivalent annual cost AW= $-12.32 million The president asked you to complete the replacement study, stipulating that, due to the rapidly rising annual operating costs (AOC), the defender would be retained a maximum of 6 years. You are expected to make the necessary estimates for the defender (PT) and perform the study at a 15%% per year retum.As the price of gasoline goes up, people are will- ing to drive farther to fill their tank in order to save money. Assume you had been buying gasoline for $2.90 per gallon and that it went up to $2.98 per gallon at the station where you usually go. If you drive an F-150 pickup that gets 18 miles per gal- lon, what is the round-trip distance you can drive to break even if it will take 20 gallons to fill your tank? Use an interest rate of 8%6 per year. An automobile company is investigating the ad- visability of converting a plant that manufactures economy cars into one that will make retro sports cars. The initial cost for equipment conversion will be $200 million with a 20% salvage value anytime within a 5-year period. The cost of pro- ducing a car will be $21,000, but it is expected to have a selling price of $33,000 to dealers. The production capacity for the first year will be 4000 units. At an interest rate of 12% per year, by what uniform amount will production have to in- crease each year in order for the company to re- cover its investment in 3 years?\f\f
