kindly solve these problems
The initial cost of a bridge that is expected to be in place forever is $70 million. Maintenance can be done at I-, 2-, 3-, or 4-year intervals, but the longer the interval between servicing, the higher the cost. The costs of servicing are estimated at $83,000, $91,000, $125 000, and $183,000 for intervals of i through 4 years, respectively. What interval should be scheduled for maintenance to minimize the overall equivalent annual cost? The interest rate is 8%% per year. A construction company bought a 180,000 metric ton earth sifter at a cost of $65,000. The company expects to keep the equipment a maximum of 7 years. The operating cost is expected to follow the series described by 40,000 + mojoout, where & is the number of years since it was purchased (t = 1, 2, . . . . 7). The salvage value is estimated to be $30,000 for years I and 2 and $20 000 for years 3 through 7. At an interest rate of 10%% per year, deter- mine the economic service life and the associated equivalent annual cost of the sifter.A machine that cost $120,000 three years ago can be sold now for $34,000. Its market value for the next 2 years is expected to be $40,000 and $20,000 one year and 2 years from now, respectively. Its operating cost was $18,000 for the first 3 years of its life, but the M&( cost is expected to be $23,000 for the next 2 years. A new improved ma- chine that can be purchased for $138,000 will have an economic life of 5 years, an operating cost of $9000 per year, and a salvage value of $32,000 after 5 years. At an interest rate of 10% per year, determine if the presently owned ma- chine should be replaced now, I year from now, or 2 years from now. The projected market value and MA( costs asso- ciated with a presently owned machine are shown (next page). An outside vendor of services has of- fered to provide the service of the existing ma- chine at a fixed price per year. If the presently owned machine is replaced now, the cost of the fixed-price contract will be $33,000 for each of the next 3 years. If the presently owned machine isIn 2008, Amphenol Industrial purchased a new quality inspection system for $530,000. The esti- mated salvage value was $30,000 after 8 years. Currently the expected remaining life is 3 years with an AOC of $27,000 per year and an estimated salvage value of $30,000. The new president has recommended early replacement of the system with one that costs $400,000 and has a 5-year economic service life, a $45,000 salvage value, and an estimated AOC of $50,000 per year. If the MARR for the corporation is 12% per year, find the minimum trade-in value now necessary to make the president's re economically advantageous A CNC milling machine purchased by Proto Tool and Die 10 years ago for $75,000 can be used for } more years. Estimates are an annual operating cost of $63,000 and a salvage value of $25,000. A chal- longer will cost $130,000 with an economic life of 6 years and an operating cost of $32,000 per year Its salvage value will be $45,000. On the basis ofDetermine the profitability index at 10% per year interest for a project that has a first cost of $200,000 in year O and $200,000 in year 2, an an- nual operating cost of $80,000 per year, revenue of $170,000 per year, and a salvage value of $60,000 after its 3-year life. The budget limit is $120,000, and the interest rate is 10% per year. All projects have a 10-year life. Use (a) the PI method and (b) the IROR method to rank and select from the independent projects. (c) Are different projects selected using the two methods? Net Income Project First Cost, S $ per Year IROR, %% - 18,000 4,000 -15,000 2300 13.3 -35,000 12,600 341 -60.000 13.000 173 -50 000 8,000Providing restrooms at parks, zoos, and other city- owned recreation facilities is a considerable ex- pense for municipal governments. City councils usually opt for permanent restrooms in larger parks and portable re smaller ones. The cost of renting and servicing a portable restroom 15 57300 per year. In one northeastern municipal- ity, the parks director informed th that the cost of constru restroom is $218,000 and the is $12,000. He remarked that the rather high cost is due to the necessity to use c e materials that are tailored to minimize damage from vandalism that often oc- curs in unattended public facilities. If the useful life of a permanent restroom is assumed to be 20 years, how many portable restrooms could the city afford to rent each year and break even with the cost of one permanent facility? Let the interest rate be 6% per year
