NPW of A = -800 + 125 * (P/A, 8%,6) + 40 * (P/A, 8%,6) * (P/F, 8%,6)
= -800 + 125 * 4.622880 + 40 * 4.622880 * 0.630170
= -105.61
NPW of B = -800 + 150 * (P/A, 8%,6) + 80 * (P/A, 8%,6) * (P/F, 8%,6)
= -800 + 150 * 4.622880 + 80 * 4.622880 * 0.630170
= 126.48
NPW of C = -800 + 100 * (P/A, 8%,6) + 120 * (P/A, 8%,6) * (P/F, 8%,6)
= -800 + 100 * 4.622880 + 120 * 4.622880 * 0.630170
= 11.87
NPW of D = -800 + 125 * (P/A, 8%,6) + 50 * (P/A, 8%,6) * (P/F, 8%,6)
= -800 + 125 * 4.622880 + 50 * 4.622880 * 0.630170
= -76.48
NPW of E = -800 + 150 * (P/A, 8%,6) + 50 * (P/A, 8%,6) * (P/F, 8%,6)
= -800 + 150 * 4.622880 + 50 * 4.622880 * 0.630170
= 39.09
As NPW of B is highest it should be selected
5-68 Consider A-E, five mutually exclusive alternatives: A B C D E Initial cost $800 $800...
QUESTION 6 Data for two mutually exclusive alternatives are given below. Alternatives B $4,000 $800 А Initial Cost $5,000 Annual Benefits (beginning at end of $1,500 year 1) Annual Costs (beginning at end of year $500 1) Salvage Value $500 Useful Life (years) 5 $200 $0 10 Compute the net present worth for each alternative and choose the better alternative. MARR = 8%
international genetic technologies inc. (InGen) is examining the following three mutually exclusive alternatives. 3) Using benefit-cost ratio analysis, a 10-year useful life and a MARR of 25%, determine which of the following mutually exclusive models should be selected. А в C D E Initial Cost $100 $200 $300 $400 $500 $37 $60 $83 $137 $150 Annual Benefits 4) A big box company is using a benefit-cost ratio analysis to select which one of the 3 alternatives shown below should be...
A small construction project having a useful life of 5 years has five mutually exclusive alternatives. With an MARR of 6% and using incremental IRR which alternative should be selected? Note: First solve for the IRR for each alternative. You may use a spreadsheet to iterate to solve, but solve for the IRR for Alternative II 'by hand' by iterating between the interest rate tables in the back of the book. Alternatives III $400 $90 Initial Cost Uniform Annual Benefit...
2) [Problem 9-50) Consider four mutually exclusive alternatives: A B C D Cost $65 $55 $25 $80 Uniform annual benefit 16.3 15.1 2 5. 2 1.3 AL Each alternative has a 6-yeatuseful life and no salvage value. The MARR is 9%. Which alternative should be selected, based on, ? a) The payback period b) Future worth analysis c) Benefit-cost ratio analysis
Three mutually exclusive alternatives are being considered: Initial cost Benefit at end of the first $500 $400 $300 200 200 200 year Uniform benefit at end of 100 125 100 subsequent years Useful life, in years 4 At the end of its useful life, an alternative is not replaced. If the MARR is 10%, which alternative should be selected (a) Based on the payback period? (b) Based on benefit-cost ratio analysis?
9-54 Three mutually exclusive alternatives are beine A considered: $500 $400 $300 200 100 Initial cost Benefit at end of the first 200 200 year Uniform benefit at end of 100 125 subsequent years Useful life, in years 4 At the end of its useful life, an alternative is not replaced. If the MARR is 10%, which alternative should be selected (a) Based on the payback period? (b) Based on benefit-cost ratio analysis? 9-54 Three mutually exclusive alternatives are beine...
Need cash flow diagram 04) Three mutually exclusive alternative are being considered Initial Cost Benefit at the end of the first Year Uniform Annual Benefits at end of subsequent years Useful Life in years $500 $200 $100 $400 $200 $125 $300 $200 $100 At the end of its useful life, an alternative is not replaced. If MARR is 10%, which alternatives should be selected? a) Based on the payback period? b) Based on benefit-cost ratio analysis c) Benefit/Costs Analysis using...
Do not use Excel or tables 9-54 Three mutually exclusive alternatives are being considered: Initial cost Benefit at end of the first $500 $400 $300 200 200 200 100 4 year Uniform benefit at end of 100 125 subsequent years Useful life, in years At the end of its useful life, an alternative is not replaced. If the MARR is 10%, which alternative should be selected (a) Based on the payback period? (b) Based on benefit-cost ratio analysis?
Consider three mutually exclusive alternatives, each with a 15-year useful life. If the MARR is 12%, which alternative should be selected? Solve the problem by using benefit-cost ratio analysis, Net Present Value, and Internal Rate of Return. A B C Cost $800 $300 $150 Uniform Annual Benefit 130 60 35
2. Consider the following two mutually exclusive alternatives: Cost, $ Uniform annual benefit, $ Useful life, years 100,000 16,000 150,000 24,000 Using a 10% interest rate, and an annual cash flow analysis, determine which alternative should be selected. Draw the CFD.