The Bureau of Indian Affairs provides various services to American Indians and Alaskan Natives. The Director of Indian Health Services is working with chief physicians at 230 clinics nationwide to select the better of two medical X-ray system alternatives to be located at secondary level clinics. At 5% per year, select the more economical system. Del Medical Siemens First cost, $ -250,000 -224,000 -231,000 -235,000 Annual operating cost, $ Overhaul in year 3, $ -26,000 -140,000 Overhaul in year 4, $ Salvage value, $ 50,000 10,000 Life, years 6 6
6. Heyden Motion Solutions ordered $7 million worth of seamless tubes for manufacturing their high performance and precision linear motion products. If their annual operating costs are $860,000 per year, how much annual revenue is required over a 3-year planning period to recover the initial investment and operating costs at the company's MARR of 15% per year?
8. A company that manufactures magnetic flow meters expects to undertake a project that will have the cash flows below. At an interest rate of 10% per year, what is the equivalent annual cost of the project? Project First cost, $ 800,000 Equipment replacement cost in year 2, $ 300,000 Annual operating cost, $ 950,000 Salvage value, $ 250,000 Life, years 4
