(subject engineering economy) USE EXCEL SPREADSHEET AND EQUESTIONS TO SOLVE THE
ID: 2743607 • Letter: #
Question
(subject engineering economy) USE EXCEL SPREADSHEET AND EQUESTIONS TO SOLVE THE PROBLEM
Epsilon Airlines is considering installing winglets on airplane to save fuel. Winglets come in two designs. Put are not necessary for the piano to operate. Cost and savings for a single aircraft are shown below. Use rate-of-return analysis over an eight year planning horizon to determine which winglets if any to purchase, assuming MARR is 18%. What are the first two alternatives to analyze? Analyze the first two alternatives and identify the survivor: Which alternative do you keep: Analyze the next two alternatives and select: the best alternative:Explanation / Answer
A.) Bent and Split Wings
b.)
Bent wings is the survivor in terms of MARR.
c.) what exactly Do you want as all required calculations are complete.
Bent wings Split Wings Incremental Year Costs Savings Net profit Costs Savings Net profit Cash flow (a-b) 0 $ 650,000.00 $ (650,000.00) $ 1,100,000.00 $ (1,100,000.00) $ (450,000.00) 1 $ 10,000.00 $ 180,000.00 $ 170,000.00 $ 30,000.00 $ 270,000.00 $ 240,000.00 $ 70,000.00 2 $ 10,000.00 $ 189,000.00 $ 179,000.00 $ 30,000.00 $ 283,500.00 $ 253,500.00 $ 74,500.00 3 $ 10,000.00 $ 198,450.00 $ 188,450.00 $ 30,000.00 $ 297,675.00 $ 267,675.00 $ 79,225.00 4 $ 10,000.00 $ 208,372.50 $ 198,372.50 $ 30,000.00 $ 312,558.75 $ 282,558.75 $ 84,186.25 5 $ 10,000.00 $ 218,791.13 $ 208,791.13 $ 30,000.00 $ 328,186.69 $ 298,186.69 $ 89,395.56 6 $ 10,000.00 $ 229,730.68 $ 219,730.68 $ 30,000.00 $ 344,596.02 $ 314,596.02 $ 94,865.34 7 $ 10,000.00 $ 241,217.22 $ 231,217.22 $ 30,000.00 $ 361,825.82 $ 331,825.82 $ 100,608.61 8 $ 10,000.00 $ 253,278.08 $ 243,278.08 $ 30,000.00 $ 379,917.11 $ 349,917.11 $ 106,639.04 Total $ 988,839.60 $ 1,238,259.40 $ 249,419.80 IRR 24.66% 19.04% 10.15%Related Questions
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