Question: 1. (1 point for each answer) A new computer system will process forms automatically and save your company $300,000 per year. The cost of the

1. (1 point for each answer) A new computer system will process forms automatically and save your company $300,000 per year. The cost of the new system is $900,000. Utilities costs will be $25,000 per year. Your MARR is 8% and the life of the system is 4 years. There is no salvage value as the computer system will be obsolete. Run a Sensitivity Analysis: a. Determine Breakeven Present Worth b. Determine Breakeven Percentage Change on investment cost c. Determine Breakeven Percentage Change on savings. 2. (3 points) Suppose that there are two alt electric motors that provide 100hp output. An Alpha motor can be purchased for $12,500 and has an efficiency of 74%, and estimated life of 10 yrs, and estimated maintenance cost of $500/yr. A Beta motor will cost $16,000 and has an efficiency of 92%, a life of 10 yrs, and annual maintenance costs of $250. Annual taxes and insurance costs on either motor will be 1.5% of the investment. Assume that SV for both motors are negligible and that electricity costs $0.05/kw hr. Note: Electrical Eff = output power/input power, and 1 hp = 0.746 kW If the MARR is 15%, how many hrs/yr would the motors have to be operated at full load for the annual costs to be equal?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

\f