Engineering Economic Analysis

Problems 393 12-34 A profitable wood products corporation is consid- ering buying a parcel of land for $50,000, building a small ...

394 INCOME TAXES .., 5 years. Capital gains are taxed at 20%. Detennine the following: (a)The annual depreciation. (b) The capit ...

Problems 395 inflation, how large an investment in the new equip- ment can be eQonomically justified by savings ob- tained by el ...

396 INCOME TAXES 'I Ann Arbor Municipal Bonds:A bond with a face value of $1000 pays $60 per annum. At the end of 15 years, the ...

Problems 397 12-56 Assume that you are debating whether to lease a car or buy one to U$e exclusively in business. The es- timate ...

1 J I ;,~~-~... ,, ;..-~': -.,=-~-. - J;.A- :~. .~ ~ ...u...~ After Completing This Chapter... The student should be able to: · ...

... -- - -- -- -- I l Replacement Analysis The $2 Billion Upgrade In February 2003, Intel. CorPoration announced it was planning ...

, 400 REPLACEMENTANALYSIS Up to this point in our economic analysis we have considered the evaluation and selection ofnewalterna ...

.. ..- ....-......... What Is the Basic Comparison? 401 Replacement analysis may, therefore, produce a recommendation that certa ...

402 REPLACEMENTANALYSIS Mutually Exclusive Set of Challengers "Current Champion" Asset (previously implemented) ~ '<cc,. ~ "' ...

-. What Is the Basic Comparison? 403 to "race" against the defender (in Figure 13-2) is the one having the lowest minimum ...

404 REPLACEMENTANALYSIS l EUAC of Capital Recovery EUAC 9fMllintenance and Repair #EUAC ofpperating --t- Total EUAC ,,: ~ >,r ...

r What Is the Basic Comparison? 405 A new piece of production machinery has the following costs. Investment cost. =$25,000 Annua ...

406 REPLACEMENT ANALYSIS l Do WeHave Marginal Cost Data for the Defender? Our decision map indicates that it is necessary to ...

-.. .----.....-.. .. - ... .-. -. .- .--- What Is the BasicComparison? 407 After-Tax Replacement Analysis Defender Marginal Cost ...

408 REPLACEMENTANALYSIS A minimumEUAGof $15,430is attainedfor the challengerat Year5, whichis the challenger's minimum cost life ...

... .... .-. -.-.......- What Is the Basic Comparison? 409 ~I Given that the defender will ultimately be replaced with the curre ...

410 REPLACEMENTANALYSIS -t. i i j Year,n 1 2 3 4 5 Lowest EUAC of the Defender Ownership H KeptnYears $16,000 15,070 14,618 ...

l' What Is the Basic Comparison? 411 -. co~t again expeeds t}lechall~nger's minimum EUAC. We emphasize that this analysis is val ...

p'. , I; , . j 1 ! iI jj ! j ! i :! i I I jI ! I ,I i I J '1 (^412) REPLACEMENTANALYSIS FIGURE 13-4 EUAGvalues for different re ...