# Explanation aw 600000 a p 15 10 210000 174000 a f 15

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Explanation: AW = -\$600,000 A P , 15%, 10 - \$210,000 + \$174,000 A F , 15%, 10 AW = -\$600,000 × (0.199) - \$210,000 + \$174,000 × (0.049) AW = \$-320,981 -320,981 ± 2% ( ) ( ) Processing math: 100%
6/22/2020 Assignment Print View 3. Award: 10 out of 10.00 points U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless steel round bars that is expected to cost \$14 million now and another \$10 million 1 year from now. If total operating costs will be \$1.3 million per year starting 1 year from now, and the estimated salvage value of the plant is virtually zero, how much must the company make annually in years 1 through 12 to recover its investment plus a return of 23% per year?
5/17 References Worksheet Difficulty: Medium Chapter: 06 Annual Worth Analysis Section: 06.01 Advantages and Uses of Annual Worth Analysis U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless steel round bars that is expected to cost \$14 million now and another \$10 million 1 year from now. If total operating costs will be \$1.3 million per year starting 1 year from now, and the estimated salvage value of the plant is virtually zero, how much must the company make annually in years 1 through 12 to recover its investment plus a return of 23% per year? The company must make \$ million annually in years 1 through 12 to recover its investment plus a return of 23% per year. Explanation: CR = -\$14 - \$10 P F , 23%, 1 A P , 23%, 12 CR = (-\$14 - \$10 × (0.813)) × (0.251) CR = \$5.553 The revenue required is \$5,553,011 per year. 5.553 ± 2% ( ( ))( ) Processing math: 100%
6/22/2020 Assignment Print View 6/17 The Briggs and Stratton Commercial Division designs and manufacturers small engines for golf turf maintenance equipment. A robotics-based testing system with support equipment will ensure that their new signature guarantee program entitled "Always Insta-Start" does indeed work for every engine produced. Pull System Push System First cost of equipment \$-1,850,000 \$-2,300,000 AOC per Year \$-760,000 \$-560,000 Salvage Value \$95,000 \$130,000 Estimated Life 8 years 8 years References Section Break Diﬃculty: Medium Chapter: 06 Annual Worth Analysis Section: 06.02 Calculation of Capital Recovery and AW Values Processing math: 100%
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