Question: answer these fA recent environmental engineering graduate is try- ing to decide whether he should keep his presently owned car or purchase a more environmentally
answer these





\fA recent environmental engineering graduate is try- ing to decide whether he should keep his presently owned car or purchase a more environmentally friendly hybrid. A new car will cost $26,000 and have annual operation and maintenance costs of $1200 per year with an $8000 salvage value in 3 years ( which is its estimated connomic service life) The presently owned car has a resale value now of $5000; one year from now it will be $3000, two years from now $2500, and 3 years from now $2200. Its operating cost is expected to be $1900 this year, with costs increasing by $200 per year. The presently owned car will definitely not be kept longer than 3 more years. Assuming used cars like the one presently owned will always be available, should the presently owned car be sold now, I year from now, 2 years from now, or 3 years from now? Use annual worth calculations at I = 10% per year and show your work.Keep or Replace the Kiln Case PE In Example 1 1.8, the in-place kiln and replacement killm (GH) were evaluated using a fixed study pe- riod of & years. This is a significantly shortened period compared to the expected 12-year life of the challenger. Use the best estimates available throughout this case to determine the impact on the capital recovery amount for the GH kiln of short- ening the evaluation time from 12 to 6 years. Nabisco Bakers currently employs staff to operate the equipment used to sterilize much of the mixing, baking, and packaging facilities in a large cookie and cracker manufacturing plant in lowa. The plant manager, who is dedicated to cutting costs but not sacrificing quality and hygiene, has the projected data shown in the table below if the current system were retained for up to its maximum expected life of 3 years. A contract company has proposed a turnkey sanitation system for $5 0 million per year if Nabisco signs on for 4 to 10 years, and $5.$ mil- ion per year for a shorter number of years. Retained AM, $ per Year Close.Down Expense, $ -3,000,000 -2,300,000 -2 500,000 -2,300,000 -2 000,000 -3,000,000 -1,000 00D -3,000,000 -1,000,000 -3 5001000 -500,000 (4) At a MARR = 8% per year, perform a re- placement study for the plant manager with fixed study period of 3 years, when it is an- ticipated that the plant will be shut down due to the age of the facility and projected tech- nological obsolescence. As you perform the study, take into account that regardless of the number of years that the current sanitation system is retained, a one-time close-down\f\f
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
