a. Hidromek is a globally known manufacturer of construction machinery. The company wants to build a...
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a. Hidromek is a globally known manufacturer of construction machinery. The company wants to build a spare part storage facility in the Ankara. A civil engineer who is alumni of YTU has identified four different location options. The initial cost of earthwork and prefab building and the annual net cash flow estimates are given in following table. The annual net cash flow series vary due to differences in maintenance, labor costs, transportation charges etc. If the MARR is 10%, use incremental ROR analysis to select the one economically best location. In the ROR analysis, use only present value analysis to compare alternatives. Initial Cost, S Annual Cash Flow Life, years (XY=21) b. Explain why we need incremental approach for ROR analysis. -200,000 - XY* 1000 +22,000 30 Single-Payment Compound- Amount Factor c. Give an example about a project that we need to use incremental ROR analysis. |F = P(1 + i)" = P(F/P,i,n) Capital Recovery Factor i (1+i)n [(1 + i) n − 1] A = P P [(1+i)n-1 B -250,000 - XY* 1000 +35,000 30 Single-Payment Present Worth Factor 1 (1 + i)" = F = F(P/F,i,n) Uniform-Series Present Worth Factor [(1 + i)" - 11 i (1 + i)n P= A(P/A, i,n) Uniform Gradient Series for Feature Factor P = A A = P(A/P, i, n) F = Gx Gx² - n] = G(F/G,i, n) F = A Uniform Series Compound Amount ” – ¹] C -190,000 - XY* 1000 +19,500 30 [(1 + i)n. i A = F n + G|₁/₁7 - A = A₁ + G A = A₁ + G(A/G, i, n) (1+i)n- r= (1 + 2)²-1 D -350,000 +42,000 30 Sinking Fund Factor i (1+i)n = = A(F/A, i, n) = F(A/F,i,n) Uniform Gradient Series Factor Uniform Gradient Series Factor A = A₁ - G G|- - A = A₁ - n (1+i)n G(A/G, i, n) r = (1 + ²)m_1 a. Hidromek is a globally known manufacturer of construction machinery. The company wants to build a spare part storage facility in the Ankara. A civil engineer who is alumni of YTU has identified four different location options. The initial cost of earthwork and prefab building and the annual net cash flow estimates are given in following table. The annual net cash flow series vary due to differences in maintenance, labor costs, transportation charges etc. If the MARR is 10%, use incremental ROR analysis to select the one economically best location. In the ROR analysis, use only present value analysis to compare alternatives. Initial Cost, S Annual Cash Flow Life, years (XY=21) b. Explain why we need incremental approach for ROR analysis. -200,000 - XY* 1000 +22,000 30 Single-Payment Compound- Amount Factor c. Give an example about a project that we need to use incremental ROR analysis. |F = P(1 + i)" = P(F/P,i,n) Capital Recovery Factor i (1+i)n [(1 + i) n − 1] A = P P [(1+i)n-1 B -250,000 - XY* 1000 +35,000 30 Single-Payment Present Worth Factor 1 (1 + i)" = F = F(P/F,i,n) Uniform-Series Present Worth Factor [(1 + i)" - 11 i (1 + i)n P= A(P/A, i,n) Uniform Gradient Series for Feature Factor P = A A = P(A/P, i, n) F = Gx Gx² - n] = G(F/G,i, n) F = A Uniform Series Compound Amount ” – ¹] C -190,000 - XY* 1000 +19,500 30 [(1 + i)n. i A = F n + G|₁/₁7 - A = A₁ + G A = A₁ + G(A/G, i, n) (1+i)n- r= (1 + 2)²-1 D -350,000 +42,000 30 Sinking Fund Factor i (1+i)n = = A(F/A, i, n) = F(A/F,i,n) Uniform Gradient Series Factor Uniform Gradient Series Factor A = A₁ - G G|- - A = A₁ - n (1+i)n G(A/G, i, n) r = (1 + ²)m_1
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Modern Database Management
ISBN: 978-0133544619
12th edition
Authors: Jeff Hoffer, Ramesh Venkataraman, Heikki Topi
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