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UPS Freight plans to spend $100 million on new long haul tractor-trailers. Some of theses vehicles will include a new Shelving design with adjustable shelves to transport irregularly sized freight that requires special handing during loading and unloading The following two mutually exclusive designs and B) with the cost details in the table below are to be compared for finalselection Round up your values to the nearest dollar Factors Design A Movable shelves Design B Adjustable frames First Cost (Thousand 5) -500 - 1000 -145 Annual operating Cost (Thousand $ /year) Annual Revenue (Thousand S/year) - 70 813 685 Salvage Value (Thousand S) a. Using the ranking approach, what values would you compare if you were to base your comparison of the two designs on an annual worth analysis at a MARR of 10 percent per year? A (Round your answers to two decimal places in thousand dollars) b. Using the ranking aproach, what values would you compare if you were to buse your comparison of the two designs on a present worth analysis at a MARR of 10 percent per year? (Round your answer to two decimal places in thousand dollars) Click to select your answer(s). Annual operating Cost (Thousand $ year Annual Revenue (Thousand year) 685 Salvage Value (Thousand $) Useful Life (years) c. Using the ranking approach what values would you compare if you were to base your comparison of the two designs on a capitalized worth analysis per year? a MARR of 10 percent (Round your answer to two decimal places in thousand dollars) d Select the equation which when solved will result in the incremental rate of return (IRRA ) for the two design alternatives? OA - 1000 (AP, 1,6)-(-500 (NP. 4) 53 (AF.1.6) (28 (NF 1,4))*53.0 Solve for IRR (ABY OB -1000 (AP. 16)(-500 (AP.14) 53 (AF, 16)- (28 (AF, 4))+53:0 Solve for IRR (A-8)= 1 O C - 1000 (NF, 16 -500 (A/F, 4)+53 (A/F, 1.6) (28 (NF 4))*530 Solve for IRR (A-3)=1 OD. -1000 (AP. 16H-500 (W/P, 14)+53 (A/P, 1,6)-(28 (AP i 4))+53=0 Solve for IRR (A B)=1 UPS Freight plans to spend $100 million on new long haul tractor-trailers. Some of theses vehicles will include a new Shelving design with adjustable shelves to transport irregularly sized freight that requires special handing during loading and unloading The following two mutually exclusive designs and B) with the cost details in the table below are to be compared for finalselection Round up your values to the nearest dollar Factors Design A Movable shelves Design B Adjustable frames First Cost (Thousand 5) -500 - 1000 -145 Annual operating Cost (Thousand $ /year) Annual Revenue (Thousand S/year) - 70 813 685 Salvage Value (Thousand S) a. Using the ranking approach, what values would you compare if you were to base your comparison of the two designs on an annual worth analysis at a MARR of 10 percent per year? A (Round your answers to two decimal places in thousand dollars) b. Using the ranking aproach, what values would you compare if you were to buse your comparison of the two designs on a present worth analysis at a MARR of 10 percent per year? (Round your answer to two decimal places in thousand dollars) Click to select your answer(s). Annual operating Cost (Thousand $ year Annual Revenue (Thousand year) 685 Salvage Value (Thousand $) Useful Life (years) c. Using the ranking approach what values would you compare if you were to base your comparison of the two designs on a capitalized worth analysis per year? a MARR of 10 percent (Round your answer to two decimal places in thousand dollars) d Select the equation which when solved will result in the incremental rate of return (IRRA ) for the two design alternatives? OA - 1000 (AP, 1,6)-(-500 (NP. 4) 53 (AF.1.6) (28 (NF 1,4))*53.0 Solve for IRR (ABY OB -1000 (AP. 16)(-500 (AP.14) 53 (AF, 16)- (28 (AF, 4))+53:0 Solve for IRR (A-8)= 1 O C - 1000 (NF, 16 -500 (A/F, 4)+53 (A/F, 1.6) (28 (NF 4))*530 Solve for IRR (A-3)=1 OD. -1000 (AP. 16H-500 (W/P, 14)+53 (A/P, 1,6)-(28 (AP i 4))+53=0 Solve for IRR (A B)=1

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