Questions from Engineering

Q: The following estimates (in $1000 units) have been developed

The following estimates (in $1000 units) have been developed for a security system upgrade at Chicago’s O’Hare Airport. (a) Calculate the conventional B/C ratio at a discount rate of 10% per year. Is...

Q: A large, standby electricity generator in a hospital operating room has

A large, standby electricity generator in a hospital operating room has a first cost of $70,000 and may be used for a maximum of 6 years. Its salvage value, which decreases by 15% per year, is describ...

Q: A piece of equipment has a first cost of $150,

A piece of equipment has a first cost of $150,000, a maximum useful life of 7 years, and a market (salvage) value described by the relation S = 120,000 – 20,000k, where k is the number of years since...

Q: In Example 11.3, the market value (salvage value

In Example 11.3, the market value (salvage value) series of the proposed $38 million replacement kiln (GH) dropped to $25 million in only 1 year and then retained 75% of the previous year’s market val...

Q: State what is meant by the cash flow approach and list two

State what is meant by the cash flow approach and list two of its limitations in a replacement study.

Q: A presently owned machine can last 3 more years, if properly

A presently owned machine can last 3 more years, if properly maintained at a cost of $15,000 per year. Its AOC is $31,000 per year. After 3 years, it can be sold for an estimated $9000. A replacement...

Q: State-of-the-art digital imaging equipment purchased 2

State-of-the-art digital imaging equipment purchased 2 years ago for $50,000 had an expected useful life of 5 years and a $5000 salvage value. After its installation the performance was poor, and it w...

Q: The plant manager has asked you to do a cost analysis to

The plant manager has asked you to do a cost analysis to determine when currently owned equipment should be replaced. The manager stated that under no circumstances will the existing equipment be reta...

Q: A presently owned machine has the projected market value and M&

A presently owned machine has the projected market value and M&O costs shown below. An outside vendor of services has offered to provide the service of the existing machine at a fixed price per ye...

Q: Randall-Rico Consultants, 5 years ago, purchased for $

Randall-Rico Consultants, 5 years ago, purchased for $45,000 a microwave signal graphical plotter for corrosion detection in concrete structures. It is expected to have the market values and annual op...