Data Review View Acrobat General -u. . . A. A. : 11wrap Text # cut Calibri a Cop
ID: 2781963 • Letter: D
Question
Data Review View Acrobat General -u. . . A. A. : 11wrap Text # cut Calibri a Copy Paste Form,Panter K16 Q2. (20 pts) You are looking to purchase new pipe fittings for your plant. You have collected the following information from five different vendors. Assume that the fittings from all vendors last 10 years, after which they can be salvaged. Use an interest rate of 10%. Part 1: Use present worth analysis to select a vendor Part 2: Calculate and use the EUAWs to select a vendor. 3 Vendor Name Initial Cost Annual Maintenance Cost 4 Ajax 5 Best Pipe 6 Central Annual Repair Cost Salvage Value 900 900 19700 17000 2200 2300 Denver Piping 8 Excelsior 1000 1100 300 19000 2500 13Explanation / Answer
Ajax:
PW = -19,700 – (3100/0.10)*(1 – 1/1.10^10) + 300/1.10^10 = -38632.50
PW = (EUAW/0.10)*(1 – 1/1.10^10) = 6.144567 EUAW
EUAW = -6287.26
Similarly, for others in excel table
In terms of worth, higher is better.
Vender Name Initial Cost Annual Maintenance Cost Annual Repair Cost Salvage Value PW EUAW Ajax 19,700 2,200 900 300 -38,632.50 -6,287.26 Best Pipe 17,000 2,300 900 500 -36,469.84 -5,935.30 Central 19,000 1,000 900 1,000 -30,289.13 -4,929.42 Better Dember Piping 19,000 2,500 700 1,100 -38,238.52 -6,223.14 Excelsior 14,000 2,100 600 300 -30,474.67 -4,959.61Related Questions
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