Problem 06.031 - Comparison of two sealing solutions based on incremental rate of return The manager of Liquid Sleeve Inc., a company that makes a sealing solution for machine shaft surfaces that have been compromised by abrasion, high pressures, or inadequate lubrication, is considering adding Al or Fe nanoparticles to its solution to increase the product's performance at high temperatures. The costs associated with each are shown below. The company's MARR is 20% per year. Determine which nanoparticle type the company should select using an incremental rate of return analysis. Type AI -291,000 Type Fe First cost, $ -140,000 Annual operating cost, -78,000 $ per year Salvage value, $ 30,000 Life, years 2 -74,000 70,000 4 The incremental rate of return is % Select type Fe Problem 06.030 - Comparison of two designs based on incremental rate of return The Texas Department of Transportation (TxDOT) is considering two designs for crash barriers along a reconstructed portion of I-10. Design 2B will cost $3 million to install and $139,500 per year to maintain. Design 4R will cost $3.7 million to install and $55,000 per year to maintain. Determine which design should be selected based on a rate of return analysis if TxDOT uses a MARR of 6% per year and a 20- year project period. The rate of return is %. s Design 4R is selected. Problem 06.031 - Comparison of two sealing solutions based on incremental rate of return The manager of Liquid Sleeve Inc., a company that makes a sealing solution for machine shaft surfaces that have been compromised by abrasion, high pressures, or inadequate lubrication, is considering adding Al or Fe nanoparticles to its solution to increase the product's performance at high temperatures. The costs associated with each are shown below. The company's MARR is 20% per year. Determine which nanoparticle type the company should select using an incremental rate of return analysis. Type AI -291,000 Type Fe First cost, $ -140,000 Annual operating cost, -78,000 $ per year Salvage value, $ 30,000 Life, years 2 -74,000 70,000 4 The incremental rate of return is % Select type Fe Problem 06.030 - Comparison of two designs based on incremental rate of return The Texas Department of Transportation (TxDOT) is considering two designs for crash barriers along a reconstructed portion of I-10. Design 2B will cost $3 million to install and $139,500 per year to maintain. Design 4R will cost $3.7 million to install and $55,000 per year to maintain. Determine which design should be selected based on a rate of return analysis if TxDOT uses a MARR of 6% per year and a 20- year project period. The rate of return is %. s Design 4R is selected