Homework Answers
Base alternative is the alternative which has the lowest initial cost, then alternatives are arranged in increasing order of their initial cost
Here Base alternative is alternative D, Alternatives in increasing initial cost are D < C < A < E < B
So after arranging alternatives, and identifying base alternative, first comparision should be between C - D
So correct option is C ie. (C - D)
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The following mutually exclusive investment alternatives have been presented to you. The life of all alternatives...
engineering economy QUESTION 2 The following mutually exclusive investment alternatives have been presented to you A...
engineering economy
QUESTION 2 The following mutually exclusive investment alternatives have been presented to you A B C E Capital investment $60,000 $90,000 $40,000 $30,000 $70,000 Annual expenses $30,000 $40,000 $25,000 $15,000 $35,000 Annual revenues $50,000 $52,000 $38,000 $28,000 $45,000 MV at EOY 10 $15,000 $15,000 $10,000 $10,000 $15,000 IRR 31.5 % 7.4 % 30.8 % 42.5 % 9.2 % The life span of all alternatives is 10 years.. Using a MARR of 15 % per year, what is the...
You have been asked to evaluate these three mutually exclusive alternatives each with a different useful li...
You have been asked to evaluate these three mutually exclusive alternatives each with a different useful life. Your company's MARR is 20% $100,000 Project Initial Cost Annual Benefit Annual Cost Useful life $140,000 $75,000 $6,500 4 years $125,000 $60,000 $6,000 6 Years $4,000 3 years 1. Assuming repeatability, which project would you choose? 2. Using a study period of 6 years, find the FW of each project by extend both project A and B to the EOY 6 at MARR....
2) Two mutually exclusive design alternatives are being considered, with each one having a useful life...
2) Two mutually exclusive design alternatives are being considered, with each one having a useful life of 10 years. The estimated sales and cost data for each alternative are shown. Annual revenues are based on the number of units sold and the selling price. Annual expenses are based on the fixed and variable costs. If the MARR is 20% per year, determine which alternative is preferable based on the PW Method. 12 Investment cost Units to be sold each year...
2) Two mutually exclusive design alternatives are being considered, with each one having a useful life...
2) Two mutually exclusive design alternatives are being considered, with each one having a useful life of 10 years. The estimated sales and cost data for each alternative are shown. Annual revenues are based on the number of units sold and the selling price. Annual expenses are based on the fixed and variable costs. If the MARR is 20% per year, determine which alternative is preferable based on the PW Method. 12 Investment cost Units to be sold each year...
Three mutually exclusive design alternatives are being considered. The estimated cash flows for each alternative are...
Three mutually exclusive design alternatives are being considered. The estimated cash flows for each alternative are given next. The MARR is 20% per year. At the conclusion of the useful life, the investment will be sold. B Investment cost Annual expenses Annual revenues Market value Useful life $28,000 $15,000 $23,000 $6,000 10 years 10 years 10 years 26.4% $55,000 $40,000 $22,000 $32,000 $10,000 $13,000 $28,000 $8,000 24.7% 22.4% IRR A decision-maker can select one of these alternatives or decide to...
ANSWER THE FOLLOWING QUESTIONS:- Three mutually exclusive design alternatives are being considered. The estimated cash...
ANSWER THE FOLLOWING QUESTIONS:-
Three mutually exclusive design alternatives are being considered. The estimated cash flows for each alternative are given. The interest rate is 20% per year. At the conclusion of the useful life, the investment will be sold A C Investment cost $28,000 $55,000 $13,000 $28,000 $8,000 $40,000 Annual expenses Annual revenues $15,000 $23,000 $6,000 10 years $22,000 $32,000 13 $10,000 Salvage value Useful life 10 years 10 years A decision-maker can select one of these alternatives or...
A firm is considering three mutually exclusive alternatives as part of an upgrade to an existing...
A firm is considering three mutually exclusive alternatives as part of an upgrade to an existing transportation network. At EOY 10, alternative III would be replaced with another alternative Ill having the same installed cost and net annual revenues. If MARR is 10% per year, which alternative (if any) should be chosen? Use the incremental IRR procedure. $40,000 $6,500 $20,000 $5,200 Installed cost Net annual revenue Salvage value Useful life Calculated IRR $30,000 $5,600 0 20 years 18.0% 20 years...
Three mutually exclusive alternatives have the following cash flow and a life of 5 years. If...
Three mutually exclusive alternatives have the following cash flow and a life of 5 years. If the MARR is 15%, which project, using the B/C ratio should be selected? First Cost $100,000 $300,000 $500,000 Annual Benefit $37,000 $83,000 $150,000 Show details of calculations in the test paper to receive credit. ОА OO O None of them
0.9. The migration of Asian carp into the Great Lakes must be stopped. Two mutually exclusive alternatives with diff...
0.9. The migration of Asian carp into the Great Lakes must be stopped. Two mutually exclusive alternatives with different operational lifespan have been proposed to keep the carp from travelling further north: Fish Nets 1,250,000 Electric Barrier $2,000,000 Initial investment, $ Annual benefits less expenses. $ EOYI EOY 2 FOY 3 | ΕΟΥ 4 Useful life, years 500.000 800.000 400.000 1.200,000 1.100.000 500,000 100.000 If the MARR is 10%, which alternative should be chosen if it is specified that the...
Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The...
Consider the following EOY cash flows for two mutually
exclusive alternatives (one must be chosen). The MARR is 5% per
year.
I need the PW of the Lead Acid and Lithium Ion.
Problem 6-28 (algorithmic) EQuestion Help Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen) The MARR is 5% per year ead Acid $7,000 thium lon Capital investment Annual expenses Useful life Market value at end of useful life $13,000 $2.500 $2,750 12...
engineering economy
QUESTION 2 The following mutually exclusive investment alternatives have been presented to you A B C E Capital investment $60,000 $90,000 $40,000 $30,000 $70,000 Annual expenses $30,000 $40,000 $25,000 $15,000 $35,000 Annual revenues $50,000 $52,000 $38,000 $28,000 $45,000 MV at EOY 10 $15,000 $15,000 $10,000 $10,000 $15,000 IRR 31.5 % 7.4 % 30.8 % 42.5 % 9.2 % The life span of all alternatives is 10 years.. Using a MARR of 15 % per year, what is the...
You have been asked to evaluate these three mutually exclusive alternatives each with a different useful life. Your company's MARR is 20% $100,000 Project Initial Cost Annual Benefit Annual Cost Useful life $140,000 $75,000 $6,500 4 years $125,000 $60,000 $6,000 6 Years $4,000 3 years 1. Assuming repeatability, which project would you choose? 2. Using a study period of 6 years, find the FW of each project by extend both project A and B to the EOY 6 at MARR....
2) Two mutually exclusive design alternatives are being considered, with each one having a useful life of 10 years. The estimated sales and cost data for each alternative are shown. Annual revenues are based on the number of units sold and the selling price. Annual expenses are based on the fixed and variable costs. If the MARR is 20% per year, determine which alternative is preferable based on the PW Method. 12 Investment cost Units to be sold each year...
2) Two mutually exclusive design alternatives are being considered, with each one having a useful life of 10 years. The estimated sales and cost data for each alternative are shown. Annual revenues are based on the number of units sold and the selling price. Annual expenses are based on the fixed and variable costs. If the MARR is 20% per year, determine which alternative is preferable based on the PW Method. 12 Investment cost Units to be sold each year...
Three mutually exclusive design alternatives are being considered. The estimated cash flows for each alternative are given next. The MARR is 20% per year. At the conclusion of the useful life, the investment will be sold. B Investment cost Annual expenses Annual revenues Market value Useful life $28,000 $15,000 $23,000 $6,000 10 years 10 years 10 years 26.4% $55,000 $40,000 $22,000 $32,000 $10,000 $13,000 $28,000 $8,000 24.7% 22.4% IRR A decision-maker can select one of these alternatives or decide to...
ANSWER THE FOLLOWING QUESTIONS:-
Three mutually exclusive design alternatives are being considered. The estimated cash flows for each alternative are given. The interest rate is 20% per year. At the conclusion of the useful life, the investment will be sold A C Investment cost $28,000 $55,000 $13,000 $28,000 $8,000 $40,000 Annual expenses Annual revenues $15,000 $23,000 $6,000 10 years $22,000 $32,000 13 $10,000 Salvage value Useful life 10 years 10 years A decision-maker can select one of these alternatives or...
A firm is considering three mutually exclusive alternatives as part of an upgrade to an existing transportation network. At EOY 10, alternative III would be replaced with another alternative Ill having the same installed cost and net annual revenues. If MARR is 10% per year, which alternative (if any) should be chosen? Use the incremental IRR procedure. $40,000 $6,500 $20,000 $5,200 Installed cost Net annual revenue Salvage value Useful life Calculated IRR $30,000 $5,600 0 20 years 18.0% 20 years...
Three mutually exclusive alternatives have the following cash flow and a life of 5 years. If the MARR is 15%, which project, using the B/C ratio should be selected? First Cost $100,000 $300,000 $500,000 Annual Benefit $37,000 $83,000 $150,000 Show details of calculations in the test paper to receive credit. ОА OO O None of them
0.9. The migration of Asian carp into the Great Lakes must be stopped. Two mutually exclusive alternatives with different operational lifespan have been proposed to keep the carp from travelling further north: Fish Nets 1,250,000 Electric Barrier $2,000,000 Initial investment, $ Annual benefits less expenses. $ EOYI EOY 2 FOY 3 | ΕΟΥ 4 Useful life, years 500.000 800.000 400.000 1.200,000 1.100.000 500,000 100.000 If the MARR is 10%, which alternative should be chosen if it is specified that the...
Consider the following EOY cash flows for two mutually
exclusive alternatives (one must be chosen). The MARR is 5% per
year.
I need the PW of the Lead Acid and Lithium Ion.
Problem 6-28 (algorithmic) EQuestion Help Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen) The MARR is 5% per year ead Acid $7,000 thium lon Capital investment Annual expenses Useful life Market value at end of useful life $13,000 $2.500 $2,750 12...
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