Question

A company must select between two air scrubbers required by the EPA for the life of...

A company must select between two air scrubbers required by the EPA for the life of the facility. Scrubber A has an initial cost of $140,000, costs $15,000 per year to operate, and has a salvage value of $12,000. Scrubber A has a useful life of 8 years. Scrubber B has an initial cost of $95,000, costs $19,000 per year to operate, and has a salvage value of $5,000. Scrubber B has a useful life of 9 years. The MARR for this project is 8%. Based on EUAC, which scrubber should be selected?

Please solve by hand, I am not allowed to use excel.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Machine X has an initial cost of $12,000 and annual maintenance of $700 per year. It...
Machine X has an initial cost of $12,000 and annual maintenance of $700 per year. It has a useful life of four years and no salvage value at the end of that time. Machine Y costs $22,000 initially and has no maintenance costs during the first year. Maintenance is $200 at the end of the second year and increases by $200 per year thereafter. Machine Y has a useful life of eight years and an anticipated salvage value of $5,000...
Use an 8 year project life and a 15% MARR to determine which alternative should be...
Use an 8 year project life and a 15% MARR to determine which alternative should be selected. Use the present worth criteria. A B First Cost $5,300 $10,700 Net Annual Benefit $1,800 $2,600 Salvage Value $3,000 $3,200 Useful Life in years 4 8 Please solve by hand, i am not allowed to use excel
A company is trying to decide between two machines that are necessary in its manufacturing facility....
A company is trying to decide between two machines that are necessary in its manufacturing facility. If management has minimum attractive rate of return (MARR) of 15%, which of the following machine should be chosen? Use annual cash flow analysis method Machine A Machine B First cost $45,000 $24,000 Annual Cost $31,000 $35,000 Overhaul in Year 4 $3,000 $5,000 Salvage Value 0 0 Useful Life 8 years 6 years
The initial cost of a new machine is 10, 000. the annual maintenance cost is 2000...
The initial cost of a new machine is 10, 000. the annual maintenance cost is 2000 for the first two years, then increases 1000 every year after that. The machine has 10 years useful life with salvage value of 4000. Calculate EUAC for keeping the machine
A chemical mixer was purchased 8 years ago for $100,000. If retained, it will require an...
A chemical mixer was purchased 8 years ago for $100,000. If retained, it will require an investment of $50,000 to upgrade it; if upgraded, it will cost $35,000/year to operate and maintain (O&M) and will have a negligible salvage value after 5 years. A new mixer can be purchased for $120,000; it will have an annual O&M cost of $15,000 and a salvage value of $40,000 after 5 years. Alternatively, a mixer can be leased with 5 beginning-of-year lease payments...
Exercise 6.4: Ajax Corporation would like to purpose a machine for $375,000 with a life span...
Exercise 6.4: Ajax Corporation would like to purpose a machine for $375,000 with a life span of 10 years. They estimate the salvage value to be 6% of the initial machine cost. If other operating costs are estimated to be $32,500 for the first year and increasing by 10% each year, what are the capital recovery cost and the equivalent uniform annual cost (EUAC) for total costs? The interest the company uses to justify their investments is 18% per year...
A machine costs $150,000 has a life of 10 years, costs $2,500 per year in maintenance...
A machine costs $150,000 has a life of 10 years, costs $2,500 per year in maintenance and has a salvage value of $30,000. At the end of years 4 and 8, it requires major servicing costing $20,000 and $10,000, respectively. At the end of year 5, it needs a major overhaul costing $45,000. What is its EUAC?         a) 24, 695         b) 26,112         c) 27,113         d) 35,987 SHOW YOUR WORK PLEASE !!
Tulsa Company is considering investing in new bottling equipment and has two options: Option A has...
Tulsa Company is considering investing in new bottling equipment and has two options: Option A has a lower initial cost but would require a significant expenditure to rebuild the machine after four years; Option B has higher maintenance costs, but also has a higher salvage value at the end of its useful life. Tulsa’s cost of capital is 11 percent. The following estimates of the cash flows were developed by Tulsa’s controller:   A B Initial Investment 320,000 454,000 Annual Cash...
"An existing asset that cost $18,000 two years ago has a market value of $11,000 today,...
"An existing asset that cost $18,000 two years ago has a market value of $11,000 today, an expected salvage value of $1,900 at the end of its remaining useful life of six more years, and annual operating costs of $4,000. A new asset under consideration as a replacement has an initial cost of $19,100, an expected salvage value of $3,200 at the end of its economic life of three years, and annual operating costs of $2,200. It is assumed that...
A contractor must choose between buying or renting a crane for the duration of a 3...
A contractor must choose between buying or renting a crane for the duration of a 3 year construction project. The contractor uses an MARR of 8%. At the end of the project, the crane can be sold for 32% of its initial cost. The cost to operate and maintain the crane is $220,000 per year. Renting the crane costs $300,000 per year including all operating and maintenance costs. Determine the maximum amount the contractor should pay to purchase the crane...