Solve These:-
An industrial engineer at a fiber-optic manufacture ing company is considering two robots to reduce costs in a production line. Robot X will have a first cost of $82,000, an annus and opera- tion (M.&Oj cost of $30,000, and salvage values of $50,000, $42,000, and $35,000 after 1, 2, and years, respectively. Robot Y will have a first cost of $97,000, an annual M&( cost of $27,000, and salvage values of $60,000, $51,000, and $42,000 after 1, 2, and 3 years, respectively. Which robot should be selected if a 2-year study period is speci- fied at an interest rate of 15% per year and replace- ment after I ye an option? A 3-year-old machine purchased for $140,000 is not able to meet today's market demands. The machine can be upgraded wow for $70,000 or sold to a sub- contracting company for $40,000. The current ma- chine will have an annual operating cost of $85,000 per year and a $30,000 salvage value in 3 years. If upgraded, the presently owned machine will be re- taimed for only 3 more years, then replaced with a machine to be used in the man facture of several other product lines. Th which will serve the company now and for at least years, will cost $220,000. Its salvage value will be $50 000 for years I through 4: $20,000 after 5 years; and $10,000 thereafter. It will have an estimated op- erating cost of $65,000 per year. You want to per- form an economic analysis at 15%% per year using a 3-year planning horizon. a) Should the company replace the presently owned machine now, or do it 3 years from now? [bj Compare the capital recovery requirements for the replacement machine (challenger) over the study period and an expected life of 8 years.Keep or Replace the Kiln Case PE In Example 1 1.8, the in-place kiln and replacement killm (GH) were evaluated using a fixed study pe- riod of & years. This is a significantly shortened period compared to the expected 12-year life of the challenger. Use the best estimates available throughout this case to determine the impact on the capital recovery amount for the GH kiln of short- ening the evaluation time from 12 to 6 years. Nabisco Bakers currently employs staff to operate the equipment used to sterilize much of the mixing, baking, and packaging facilities in a large cookie and cracker manufacturing plant in lowa. The plant manager, who is dedicated to cutting costs but not sacrificing quality and hygiene, has the projected data shown in the table below if the current system were retained for up to its maximum expected life of 3 years. A contract company has proposed a turnkey sanitation system for $5 0 million per year if Nabisco signs on for 4 to 10 years, and $5.$ mil- ion per year for a shorter number of years. Retained AM, $ per Year Close.Down Expense, $ -3,000,000 -2,300,000 -2 500,000 -2,300,000 -2 000,000 -3,000,000 -1,000 00D -3,000,000 -1,000,000 -3 5001000 -500,000 (4) At a MARR = 8% per year, perform a re- placement study for the plant manager with fixed study period of 3 years, when it is an- ticipated that the plant will be shut down due to the age of the facility and projected tech- nological obsolescence. As you perform the study, take into account that regardless of the number of years that the current sanitation system is retained, a one-time close-down\fIn conducting a replacement study wherein the planning horizon is unspecified, list three assump- tions that are inherent in an annual worth analysis of the defender and challenger. A civil engineer who owns his own design/build/ operate company purchased a small crane 3 years ago at a cost of $60,000. At that time, it was ex- pecied to be used for 10 years and then traded in for its salvage value of $10,000. Due to increased construction activities, the company would prefer in trade for a new, larger crane now that will cost $80 000. The company estimates that the old crane can be used, if necessary, for another 3 years, at which time it would have a $23,000 estimated market value. Its current market value is estimated in be $39,000, and if it is used for another 3 years, it will have M&O costs (exclusive of operator costs of $17,000 per year. Determine the values of P. w. S, and ADC that should be used for the exist- ing crane in a replacement analysis.\f
