ABC company wants to replace equipment at least every two years utilizing the lease contract. The...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
ABC company wants to replace equipment at least every two years utilizing the lease contract. The initial lease payment is $60,000. After that, the equipment price increases by 2% every year, and the trade-in credit for equipment used for one year is 30% of the equipment price and 10% for two years of use. ABC company wants to minimize the leasing costs over the next five years when replacing one's equipment under plan 2. a) Define the decision variables (1 point) a. Xij- Initially acquire at the beginning of the year (i) and then replace at the beginning of the year (j) i. Xij=1 ii. Xij-0 b) Define the objective function (4 points) Min=42,000x12 + 54,000x13+ 43,260x23+55,620x24+ 44,557.80x34 +57,288.60x35 + 45,894.53x45 c) Define the constraints (4 points) a. 1-(x12+x13)=0 b. X12-(x24+x23)=0 c. X23+x13-(x34+x35)=0 d. X24+x34+x35=0 e. X45+x35-1=0 f. Xij- Binary d) Determine an optimal solution using Solver (4 points) a. ABC company wants to replace equipment at least every two years utilizing the lease contract. The initial lease payment is $60,000. After that, the equipment price increases by 2% every year, and the trade-in credit for equipment used for one year is 30% of the equipment price and 10% for two years of use. ABC company wants to minimize the leasing costs over the next five years when replacing one's equipment under plan 2. a) Define the decision variables (1 point) a. Xij- Initially acquire at the beginning of the year (i) and then replace at the beginning of the year (j) i. Xij=1 ii. Xij-0 b) Define the objective function (4 points) Min=42,000x12 + 54,000x13+ 43,260x23+55,620x24+ 44,557.80x34 +57,288.60x35 + 45,894.53x45 c) Define the constraints (4 points) a. 1-(x12+x13)=0 b. X12-(x24+x23)=0 c. X23+x13-(x34+x35)=0 d. X24+x34+x35=0 e. X45+x35-1=0 f. Xij- Binary d) Determine an optimal solution using Solver (4 points) a.
Expert Answer:
Answer rating: 100% (QA)
To determine the optimal solution for minimizing leasing costs over the next five years using Solver we need to set up the decision variables objectiv... View the full answer
Related Book For
Posted Date:
Students also viewed these general management questions
-
Early in 2015, Mr. Bourne bought 12,000 common shares in a public company for $10/share. These shares have an annual guaranteed eligible dividend of $6,000. It is January 1, 2020 and Mr. Bourne would...
-
ASAP Delivery is a small company that transports business packages between San Francisco and Los Angeles. It operates a fleet of small vans that moves packages to and from a central depot within each...
-
Need help asap with physics questions 1. a) Write down the three lepton conservation laws, taking care to define all the terms. {3} b) For the neutrinos in the following reactions, assign the...
-
Translate the seven steps to Java code.
-
At the present time, one can enter five- year swaps that exchange LIBOR for 8 percent. An off-market swap would then be defined as a swap of LIBOR for a fixed rate other than 8 percent. For example,...
-
In order to test the applicability of the ideal gas equation of state to calculate the density of saturated steam, compare the specific volume of saturated steam obtained from the steam table with...
-
What does integrity mean in the context of data management?
-
For a recent year, Target Corporation reported revenue of $69,865 million. Its gross profit was $22,005 million. What was the amount of Targets cost of merchandise sold?
-
A U.S. consumer observes that a golf club costs $300. Currently in the spot market, 1 euro can be exhanged for $1.3602. If purchasing power parity (PPP) holds, how many euros should you expect to pay...
-
Mid-Valley Travel Agency (MVTA) has offices in 12 cities. The company believes that its monthly airline bookings are related to the mean income in those cities and has collected the following data:...
-
Problem: Installment Liquidation On November 10, 2016, Ed, Fin, and Jim, partners had capital account balances of $20,000, $25,000 and $9,000 respectively, and share profits or losses in a 4:2:1...
-
Suppose a seven-year $1,000 bond with a 7.04% coupon rate and semiannual coupons is trading with a yield to maturity of 4.87% a. Is this bond currently trading at a discount, at par, or at a premuim?...
-
Building Your Marketing Plan Part 3 Step 3: Research the following questions to be used in your marketing plan. A new product line for BMW could be a line of electric vehicles How do you plan to...
-
Two cars collide at an icy intersection and stick together afterward. The first car has a mass of 1450 kg and is approaching at 9.5 m/s due south. The second car has a mass of 650 kg and is...
-
When people feel empowered at work, it is associated with stronger job performance, job satisfaction, and commitment to the organization. Many leaders today often try to empower their employees by...
-
Calculate: a) Bank One-Two ROA b) Bank One-Two ROE c) Bank One-Two Capital Adequacy Ratio (Basel 1) In the context of Asset and Liability Management and Capital Management, Bank One-Two intends to...
-
To bring innovation and inspiration to every athlete in the world'- is the vision statement of Nike, Critically evaluate this Vision statement based on your understanding f the concept and also...
-
Fill in each blank so that the resulting statement is true. A solution to a system of linear equations in two variables is an ordered pair that__________ .
-
Fellowes and Associates Chartered Accountants is a successful mid-tier accounting firm with a large range of clients across Canada. During the 2011 financial year, Fellowes and Associates gained a...
-
Describe the expectation gap.
-
The sales transactions at Alberta Park, a new audit client, are handled by a software application that is not supported by very detailed documentation. The audit partner requests that the team...
-
What happens if you specify an invalid format string?
-
What does argv provide to our program?
-
Are the input specifiers for scanf() identical to the output specifiers for printf()?
Study smarter with the SolutionInn App