A major hospital can purchase and install a used chiller unit for $192k. This unit could...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A major hospital can purchase and install a used chiller unit for $192k. This unit could be in service for five more years, after which another used chiller could replace it. The alternative is to purchase a new unit having a ten year life for $360k. • The used chiller will have a scrap value of $20k at end of life. O&M costs for the used chiller are expected to be $40k next year, increasing by $10k every year thereafter. • For the new chiller the figure is $30k scrap at end of life. The anticipated O&M costs for the new chiller are $10k in year two, with a $5k annual increment thereafter. The hospital's MARR is 4% annually. Write a memorandum in which you recommend a course of action, supported by economic calculations in an attachment. A major hospital can purchase and install a used chiller unit for $192k. This unit could be in service for five more years, after which another used chiller could replace it. The alternative is to purchase a new unit having a ten year life for $360k. • The used chiller will have a scrap value of $20k at end of life. O&M costs for the used chiller are expected to be $40k next year, increasing by $10k every year thereafter. • For the new chiller the figure is $30k scrap at end of life. The anticipated O&M costs for the new chiller are $10k in year two, with a $5k annual increment thereafter. The hospital's MARR is 4% annually. Write a memorandum in which you recommend a course of action, supported by economic calculations in an attachment.
Expert Answer:
Answer rating: 100% (QA)
YEARS PARTICULARS PVF USED CHILLER IN 000 PV OF USED CHILLER CASHFLOW in 000 NEW CHILLER IN 00... View the full answer
Related Book For
Operations and Supply Chain Management
ISBN: 978-0077403652
13th edition
Authors: F. Robert Jacobs, Richard Chase
Posted Date:
Students also viewed these accounting questions
-
In Figure after switch S is closed at time t = 0, the emf of the source is automatically adjusted to maintain a constant current i through S.(a) Find the current through the inductor as a function of...
-
You invest $1,000 a year for ten years at 10 percent and then invest $2,000 a year for an additional ten years at 10 percent. How much will you have accumulated at the end of the 20 years?
-
It currently costs $500 to install a new shower in your house. A new law requires each new shower to come with digital hot and cold water controls instead of the old-fashioned knobs that everyone...
-
The table lists the actual annual cost y to drive a midsize car 15,000 miles per year for selected years X. (a) Predict whether the correlation coefficient is positive, negative, or zero. (b) Find a...
-
Identify three contracts you have experienced or observed. Select one that is expressed in writing, one expressed orally, and one implied in fact from conduct. Classify each as to parties bound,...
-
Reading numbers from file "3nums.txt" done. 3+ 4+ 512
-
An experienced senior auditor was assigned to investigate a possible fraudulent situation characterized by extremely high, unexplained merchandise shortages at one location of the companys department...
-
Inventory Errors At December 31, 2010, Dwight Corporation reported current assets of $390,000 and current liabilities of $200,000. The following items may have been recorded incorrectly. Dwight uses...
-
All the following is true about LIFO except: Question 10Answer a. The last item put into inventory is the first item used from the inventory. b. LIFO generates an inventory of older items. c. Unit...
-
On 1 January 20x6, Company X acquires the entire share capital of $500,000 comprising of 500,000 ordinary shares in Company Y. Retained earnings as that date amounted to $100,000. In previous years,...
-
Explain what tools/services allow for central management in VMware vSphere. Also, name a few of the logical groupings that are available once using central management (think Datacenter, Cluster,...
-
Provide a statement of need and "hypothetical" data substantiating the need of remote work during a pandemic.The data should clearly serve as a basis for the selection of the program content.
-
Pick one theoritical framework of your choice to explain a behavior and how it may affect development ?
-
Discuss a competency for a position, and describe some of the indicators used to determine if the competency is present. There should be five indicators.
-
If you worked for one of the oil companies and were tasked to negotiate an oil contract with the Nigerian government, how would you go about it? What would you recommend your company do? Why?
-
Suppose that a person has an average heart rate of 62.0 beats/min. How many beats does he or she have in 1.0 y? Incorrect not valid decimal or scientific notation. In 1.00 y?
-
Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 2.05. Now suppose you decided to sell one of the stocks in...
-
Q1) What is the a3 Value Q2) What is the a7 Value Q3) What is the a4 Value Q4) What is the b3 Value Q5) What is the b2 Value Q6) What is the sign of 2nd constraint? A pastry chef at a bakery wants to...
-
Comment on the following: a. "Work measurement is old hat. We have automated our office, and now we run every bill through our computer (after our 25 clerks have typed the data into our computer...
-
Can a factory be fast, dependable, flexible, produce high-quality products, and still provide poor service from a customer's perspective?
-
Under what conditions is the assignment method appropriate?
-
Characterize the organizational structure of the information system function.
-
Describe the purpose of the internal audit function.
-
Characterize an organization's internal control structure.
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App