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Ul tle ulesel engines? 6.27 Certain parts for NASA\'s reusable space exploration

ID: 2797098 • Letter: U

Question

Ul tle ulesel engines? 6.27 Certain parts for NASA's reusable space exploration Salvag vehicle can either be anodized or powder coated. Some of the costs for each process are shown. 6.30 Anodize Powder Coat First cost,S Annual cost, $ per year Resale value, $ Life, years -65,000 -21,000 6,000 The incremental AW cash flow equation associ- ated with (Powder Coat-Anodize) is 0 =-14.000(A/Par*,3) + 5000 +2000(A/F,Ai*,3) What is (a) the first cost for anodizing, (b) the an nual cost for powder coating, and (c) the resale value of the anodized parts?

Explanation / Answer

a.) On observing the equation, we can detemine the missing values,

First cost of annodizing,

-65,000 - y = -14,000

=> y = -65,000 + 14,000

=> y = -51,000

b.) Annual Cost of Powder Coating be y

y - (-21,000) = 5,000

y = 5,000 - 21,000

y = -16,000

c.) Resale value of annodized parts be y

6,000 - y =2,000

y = 6,000 - 2,000

y = 4,000