Question: solve these problems:- An engineer with Haliburton calculated the AW values shown for a presently owned machine by using estimates be obtained from the vendor
solve these problems:-





An engineer with Haliburton calculated the AW values shown for a presently owned machine by using estimates be obtained from the vendor and company records. Retention AW Value. Period, Years 5 per Year -RI, OOD -87,DOD -890OD -95,000 A challenger has an economic service life of 7 years with an AW of $ 86,000 per year. Assume that used machines like the one presently owned will always be available and that the MARR is 12%% per year. If all future costs remain as esti- mated for the analysis, the company should pur- chase the challenger: [a) Now (b) After 2 years [o) After 3 years () NeverWe continue with the progressive example of possibly replacing a kiln at B&T Enterprises. A marketing study revealed that the improving business activity on the west coast implies that the revenue profile between the installed kiln (PT) and the proposed new one (GH) would be the same, with the new kiln possibly bringing in new revenue within the next couple of years. The president of B&T decided it was time to do a replacement study. Assume you are the lead engineer and that you previously completed the ESL analysis on the challenger (Exam- ple 11 3) It indicates that for the GH system the ESL is its expected useful life. Challenger: ESLA = 12 years with total equivalent annual cost AW= $-12.32 million The president asked you to complete the replacement study, stipulating that, due to the rapidly rising annual operating costs (AOC), the defender would be retained a maximum of 6 years. You are expected to make the necessary estimates for the defender (PT) and perform the study at a 15%% per year retum.\f\f\f
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
