Two flash vaporizer machines are considered for the upgrade of biodiesel production. An engineer is asked to perform analyses to select the best machine. He prepares the following information for the...


Two flash vaporizer machines are considered for the upgrade of biodiesel production. An engineer is asked to perform analyses to select the best machine. He prepares the following information for the evaluation. Machine X has a useful life of 8 years and machine Y<br>has a useful life of 11 years.<br>Machine<br>$32,000<br>$12,000<br>First costs<br>$29,000<br>Net annual revenue<br>$10,500<br>Market value at the end of the<br>useful life<br>$6900<br>$6000<br>Life, years<br>8<br>11<br>Please calculate your answer to the nearesr dollar. Format 0000 No commas<br>Note you may have to use Excel to calculate the discount factor if no textbook table value exists. (Use 4 decimal places)<br>a) The PW of the CR(8) for Machine Y is? S<br>b) The PW of the MV(8) for Machine Y is? S<br>c) The imputed market value, IMV of Machine Y at the end of year 8 is? S<br>d) The AW of Machine X is? S<br>e) The AW of Machine Y is? S<br>f) Which machine should be selected using an interest rate of 13% per year and a study period of 8 years<br>O A.<br>O B. Machine Y because AW(X) > AW(Y)<br>OC. Machine Y because PW(Y) > PW (X)<br>OD. Machine X because AW(X) < AW(Y)<br>

Extracted text: Two flash vaporizer machines are considered for the upgrade of biodiesel production. An engineer is asked to perform analyses to select the best machine. He prepares the following information for the evaluation. Machine X has a useful life of 8 years and machine Y has a useful life of 11 years. Machine $32,000 $12,000 First costs $29,000 Net annual revenue $10,500 Market value at the end of the useful life $6900 $6000 Life, years 8 11 Please calculate your answer to the nearesr dollar. Format 0000 No commas Note you may have to use Excel to calculate the discount factor if no textbook table value exists. (Use 4 decimal places) a) The PW of the CR(8) for Machine Y is? S b) The PW of the MV(8) for Machine Y is? S c) The imputed market value, IMV of Machine Y at the end of year 8 is? S d) The AW of Machine X is? S e) The AW of Machine Y is? S f) Which machine should be selected using an interest rate of 13% per year and a study period of 8 years O A. O B. Machine Y because AW(X) > AW(Y) OC. Machine Y because PW(Y) > PW (X) OD. Machine X because AW(X) <>

Jun 03, 2022
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