ISE
Selected Solutions - 6

Selected Solutions - 6 - SOLUTIONS TO SELECTED PROBLEMS...

• Homework Help
• 2

This preview shows pages 1–2. Sign up to view the full content.

SOLUTIONS TO SELECTED PROBLEMS Student: You should work the problem completely before referring to the solution. CHAPTER 6 Solutions included for problems 1, 4, 7, 10, 13, 16, 19, 22, 25, 28, and 31 6.1 The estimate obtained from the three-year AW would not be valid, because the AW calculated over one life cycle is valid only for the entire cycle , not part of the cycle. Here the asset would be used for only a part of its three-year life cycle. 6.4 AW centrifuge = -250,000(A/P,10%,6) – 31,000 + 40,000(A/F,10,6) = \$-83,218 AW belt = -170,000(A/P,10%,4) – 35,000 – 26,000(P/F,10%,2)(A/P,10%,4) + 10,000(A/F,10%,4) = \$-93,549 Select centrifuge. 6.7 AW X = -85,000(A/P,12%,3) – 30,000 + 40,000(A/F,12%,3) = \$-53,536 AW Y = -97,000(A/P,12%,3) – 27,000 + 48,000(A/F,12%,3) = \$-53,161 Select robot Y by a small margin. 6.10 AW C = -40,000(A/P,15%,3) – 10,000 + 12,000(A/F,15%,3) = \$-24,063 AW D = -65,000(A/P,15%,6) – 12,000 + 25,000(A/F,15%,6) = \$-26,320

This preview has intentionally blurred sections. Sign up to view the full version.

This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Select machine C. 6.13 AW land = -110,000(A/P,12%,3) – 95,000 + 15,000(A/F,12%,3) = \$-136,353 AW incin = -800,000(A/P,12%,6) – 60,000 + 250,000(A/F,12%,6) = \$-223,777 AW contract = \$-190,000 Use land application. 6.16 AW 100 = 100,000(A/P,10%,100) = \$10,001 Chapter 6 1 AW ∞ = 100,000(0.10) = \$10,000 Difference is \$1. 6.19 AW = -100,000(0.08) –50,000(A/F,8%,5) = -100,000(0.08) –50,000(0.17046) = \$-16,523 6.22 Find P in year –1, move to year 9, and then multiply by i. Amounts are in \$1000. P-1 = [100(P/A,12%,7) – 10(P/G,12%,7)](F/P,12%,10) = \$1055.78 A = 1055.78(0.12) = \$126.69 6.25 Find PW in year 0 and then multiply by i. PW = 50,000 + 10,000(P/A,10%,15) + (20,000/0.10)(P/F,10%,15) = \$173,941 6.28 Note: i = effective 10% per year. A = [100,000(F/P,10%,5) – 10,000(F/A,10%,6)](0.10) = \$8389 6.31 AW = -800,000(0.10) – 10,000 = \$-90,000 Answer is (c) Chapter 6 2...
View Full Document

• Fall '07
• CPKoelling
• three-year life cycle

{[ snackBarMessage ]}

What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern