Question: An engineer must decide between two ways to pump concrete to the top of a seven-story building. Plan 1 requires the leasing of equipment

An engineer must decide between two ways to pump concrete to the top of a seven-story building. Plan 1 requires the leasing of equipment for $60,000 initially and will cost between $0.40 and $0.95 per metric ton to operate, with a most likely cost of $0.50 per metric ton. The pumper can pump 100 metric tons per 8-hour day. If leased, the asset will have a contract period of 5 years. Plan 2 is a rental option that will cost $16000 per year. In addition, an extra $18.50 per hour labor cost will be incurred for operating the rented equipment per 8-hour day. Which plan should the engineer recommend if the equipment will be needed for 50.0 days per year? The MARR is 13.00% per year. (Round the final answers to three decimal places.) (Include a minus sign if necessary.) The annual worth of plan 1 lease optimistic is $ The annual worth of plan 1 most likely is $ The annual worth of plan 1 pessimistic is $ The annual worth of plan 2 rental is $ Plan 1 lease optimistic is (Click to select) than rental of plan 2. Plan 1 most likely is (Click to select) than rental of plan 2. Plan 1 lease pessimistic is [(Click to select) than rental of plan 2.

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 Accounting Questions!

Describe the major principles in classical and operant conditioning. What are the similarities and differences between the two? Describe the three systems of memory and explain how they are connected...

An engineer must decide between two ways to pump concrete to the top of a seven-story building. Plan 1 requires the leasing of equipment for $60,000 initially and will cost between $0.40 and $0.95...

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

A horizontal cantilever beam of length l and of uniform cross-section carries a uniformly distributed load of w per unit length for the full span. The cantilever is supported by a rigid prop at a...

On January 1, Hannah Company signed a 1-year rental for a total of $60,000, with quarterly payments of $15,000 due at the end of each quarter. In addition, the renter must pay contingent rent of 4%...

30. Write an assembly language program that corresponds to the following C program: int num; int main () { scanf("%d", &num); num = num / 16; printf("num = %d", num); return 0; }

What are some of the distinguishing features of third-force psychology?

What activities are involved in the selection process? Think of the last time you were hired for a job. Which of those activities were used in selecting you? Should the organization that hired you...

On January 1, 2018, the Shagri Company began construction on a new manufacturing facility for its own use. The building was completed in 2019. The only interest-bearing debt the company had...

The sale price of a product is $200, which is 40% off the regular selling price. Find the regular selling price. Answer = $ (rounded to the nearest cent)

Intermediate accounting 1 682 Chapter 13 prevailing market rate on January 1 of that year. Eden also entered into an interest rate swap agreement related to this loan. Under the terms of the swap...

For each of the following, Draw T-v and P-v Phase diagrams of the processes A. Compressed liquid at state (1) is heated at constant pressure to a saturated mixture at state (2). B. Saturated Liquid...

Healthcare Providers and Nonbinary Patients The importance for adherence by those professionals to that code; Choose two principles from the code you chose to illustrate the values these...

Brewer Corporation. has the following information for August: The Decorating Department had 600 wreaths in process at the beginning of the month that were 80 percent complete s to material and 90...

All products and services move through the PRODUCT LIFE CYCLE What are the phases of the PRODUCT LIFE CYCLE? Chose a product or a service of a company in the sporting goods industry. Designate the...

Question 2 Most of the current organizations are relying on IT services to process their daily operational and business processes. However, on the other hand, some of these organizations do not fully...

The population of Detroit, Michigan, decreased from 1,027,974 in 1990 to 688,701 in 2013 (Source: U.S. Census Bureau). Find the average rate of change in the population of Detroit, Michigan, over the...

Research has linked watching a lot of television during the toddler years with later attention problems. How common is this practice? Has this increased or decreased in recent years? What advice do...

Researchers found that spanking causes increases in childrens aggression and oppositionality, at least in some families. How did the researchers establish that spanking caused the aggression, and not...

Some television shows featuring people helping families cope with their disruptive children have become popular in the United States. Have you ever seen them? Is disruptive behavior in children on...