Washington Air Company is considering the purchase of a helicopter for connecting services between the company's base airport and the new intercounty airport being built about 30 miles away. It is believed that the chopper will be needed only for six years until the Rapid Transit Connection is phased in. The estimates on two types of helicopters under consideration, the Whirl 2B and the ROT 8, are given in the table below. Assuming that the Whirl 2B will be available in the future with identical costs, what is the annual cost advantage of selecting the ROT 8? (Use an interest rate of 13%.) Click the icon to view the estimates on two types of helicopters under consideration Click the icon to view the interest factors for discrete compounding when i = 13% per year. The annual cost advantage of selecting the ROT 8 is $ . (Round to the nearest dollar.) i More Info . X i More Info -X Single Payment Equal Payment Series The Whirl 2B The ROT 8 Compound Present Compound inking Present capital Amount Worth Amoun Worth Recovery First cost $94,000 $113,000 Factor Factor Factor Factor Factor Factor Annual (F/P, i, N) (P/F, i, N FIA, i, N) A/F, i, N) (P/A, i, N) A/P, i, N) maintenance $2,500 $7,500 1.1300 0.8850 1.0000 1.0000 0.8850 1.1300 Salvage value $17,000 $27,000 1.2769 .783 2.1300 0.4695 1.6681 Useful life in 0.599 years UA W N - Z 1.4429 0.693 3.4069 0.2935 2.3612 0.4235 1.6305 0.6133 4.8498 0.2062 2.9745 1.8424 0.5428 6.4803 0.1543 3.5172 .2843 Print Done 2.0820 0.4803 8.3227 .120 3.9975 0.2502 2.3526 0.4251 10.4047 0.0961 4.4226 0.226 2.6584 0.3762 12.7573 0.0784 4.7988 0.2084 3.0040 0.332 15.415 0.0649 5.1317 0.1949 3.3946 0.2946 18.4197 0.0543 5.4262 0. 1843 Print DoneA large land-grant university that is currently facing severe parking problems on its campus is considering constructing parking decks off campus. A shuttle service could pick up students at the off campus parking deck and transport them to various locations on campus. The university would charge a small fee for each shuttle ride, and the students could be quickly and economically transported to their classes. The funds raised by the shuttle would be used to pay for trolleys, which cost about $170,000 each. Each trolley has a 12-year service life, with an estimated salvage value of $12,000. To operate each trolley, additional expenses will be incurred, as given in the table below. If students pay 10 cents for each ride, determine the annual ridership per trolley (number of shuttle rides per year) required to justify the shuttle project, assuming an interest rate of 6%. BEClick the icon to view the additional expenses. Click the icon to view the interest factors for discrete compounding when i= 6% per year. The annual number of shuttle rides per year required to justify the shuttle project is | | million. (Round to three decimal places.) i More Info X i More Info - X Single Payment Equal Payment Series Compound Present Compound Sinking Present Capital Item Annual Expense ($) Amount Worth Amoun Fund Worth Recovery Drive $70,000 Factor Facto Factor actor Factor Factor (F/P, i, N) F/A, i, N) (A/F, i, N A/P, i, N) Maintenance 15,00 (P/F, i, N) (P/A, i, N) - 2 1.0600 Insurance $5,000 0.9434 1.0000 0.9434 1.0600 1.1236 0.8900 2.0600 0.4854 1.8334 0.5454 1.1910 0.8396 3.1836 0.3141 2.6730 0.3741 Print Done 1.2625 0.7921 4.374 0.2286 3.465 0.2886 1.3382 0.7473 5.6371 0.1774 4.2124 0.2374 1.4185 .705 6.9753 0. 1434 4.9173 0.2034 1.5036 0.6651 8.3938 0.119 5.5824 0. 1791 1.5938 0.6274 9.8975 0.1010 6.2098 0.1610 1.689 0.5919 11.4913 0.087 3.8017 0.1470 1.7908 0.5584 3.1808 0.0759 7.3601 0.1359 1.8983 0.5268 14.9716 0.0668 8869 0. 1268 2.012 0.4970 6.8699 0.059 3.3838 0.1193 2.132 0.4688 8.8821 0.0530 3.8527 0.1130 2.2609 0.4423 21.0151 0.0476 9.2950 0.1076 2.3966 0.4173 23.2760 0.0430 9.7122 0.1030The cash ows in the table below represent the potential annual savings associated with two different types of production processes, each of which requires an investment of $33,000. Assume an interest rate of 7%. a Click the icon to view the data for cash flows. 5 Click the icon to view the interest factors for discrete compounding when i = 7% per year. (a) Determine the equivalent annual savings for each process. The equivalent annual savings for process A are $ . (Round to the nearest dollar.) 0 Morelnfo o More Info - $33,000 -$33,000 $18,530 $16,950 $16,860 $16,950 $15,190 $16,950 $13,520 $16,950 10000 1.0000 0.0000 2.0700 0.4831 0.8734 3.2149 0.3111 2.5060 4.4399 0.2252 4.7947 7 5.7507 0.1739 7.6467 Print H Done l 7.1533 0.1398 10.9764 8.6540 0.1156 14.7149 10.2598 0.0975 18.7889 11.9780 0.0335 23.1404 13.8164 0.0724 27.7156 Print H Done