Homework Answers
Repeat the cycle of project A two times.
Compare the PW of A and B
PW (A) = -5000 - 5000(P/F, 8%, 5) + 860(P/A, 8%, 10) + 550(P/F, 8%, 5) + 550(P/F, 8%, 10)
= -5000 - 5000*1.08^-5 + 860*(1.08^10 - 1)/(0.08*1.08^10) + 550*1.08^-5 + 550*1.08^-10
= -$2003.
PW (B) = -10500 + 1600(P/A, 8%, 10) + 820(P/F, 8%, 10)
= -10500 + 1600*(1.08^10 - 1)/(0.08*1.08^10) + 820*1.08^-10
= $616
Since PW (A) < PW (B) we select B
Add Answer to:
solve by hand
Mountain Environmental Consulting may buy some field equipment. Consider the following two mutually...
Consider the mutually exclusive alternatives given in the table below: A B Capital investment $250,000 $400,000...
Consider the mutually exclusive alternatives given in the table below: A B Capital investment $250,000 $400,000 $500,000 Uniform annual savings $131,900 $40,690 $44,050 Useful life (years) 10 20 5 Assuming repeatability, which alternative should the company select? (Choose the one best answer from the choices given below.) Do nothing Alternative A Alternative B Alternative C
Consider the mutually exclusive alternatives given in the table below: A B Capital investment $250,000 $400,000 $500,000 Uniform annual savings $131,900 $40,690 $44,050 Useful life...
4. (10 points) A firm is considering three mutually exclusive alternatives as part of a production...
4. (10 points) A firm is considering three mutually exclusive alternatives as part of a production improvement program. The alternatives are: Initial Cost $20,000 $30,000 $50,000 Uniform Annual Benefit $4,000 $5,000 $6,500 Useful Life Salvage Value $2,000 $9,000 The MARR is 10%. Which alternative do you recommend? Be sure to use the proper technique when comparing alternatives with different useful lives.
QUESTION 6 Data for two mutually exclusive alternatives are given below. Alternatives B $4,000 $800 А...
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%
Problem (2): Consider the following three mutually exclusive alternatives. MARR is 10%. Alternative 1 10,000 Alternative...
Problem (2): Consider the following three mutually exclusive alternatives. MARR is 10%. Alternative 1 10,000 Alternative 2 14,500 Alternative 3 20,000 $3,000 increasing by 500 each year thereafter negligible $5,000 Initial investment Annual yielded returns Salvage Value Service life $5,000 $5,000 negligible 6 a) Compute the payback (PB) period and discounted PB period of each alternative. Based on the PB period, which alternative do you recommend? b) Using Annual-worth analysis, which alternative do you recommend?
Two mutually exclusive design alternatives are being considered for purchase. Doing nothing is also an option....
Two mutually exclusive design alternatives are being considered for purchase. Doing nothing is also an option. The estimated cash flows for each alternative are given below. The MARR is 10% per year. Using the PW method, which alternative, if either, should be recommended? Capital Investment Annual Revenues Annual Expenses MV at end of useful life Useful Life IRR Alternative 1 $15,000 $8,000 $2,900 $2,000 4 years 17.2% Alternative 2 $23,000 $12,000 S3,000 $800 12 years 38.4%
QUESTION 2 Consider the following mutually exclusive alternatives: Alternative A Alternative B Capital investment $473,000 $1,114,000...
QUESTION 2 Consider the following mutually exclusive alternatives: Alternative A Alternative B Capital investment $473,000 $1,114,000 Net annual receipts $104,100 $235,000 Both alternatives have a useful life of 20 years and no market value at that time. The MARR is 20 % per year. Determine the annual worth (AW) of the most profitable course of action. (Enter your answer as a number without the dollar sign.)
selected? urm is considering three mutually exclusive alter- atives as part of a production improvement program....
selected? urm is considering three mutually exclusive alter- atives as part of a production improvement program. The alternatives are as follows: First cost $15,000 Maintenance 1,600 and operating Annual benefit 8,000 Salvage value 3,000 Useful life, in years4 Installed cost Uniform annual benefit Useful life, in years A B C $10,000 $15,000 $20,000 1.625 1.625 1,890 10 20 For each alternative, the salvage value at the end of useful life is zero. At the end of 10 years, Alt. A...
Consider the mutually exclusive alternatives given in the table below. MARR is 8 % per year....
Consider the mutually exclusive alternatives given in the table below. MARR is 8 % per year. Assuming repeatability, what is the equivalent annual worth of the most profitable alternative? (Do not enter the dollar sign $ with your answer.) _____________________________________________________________ X Y Z _____________________________________________________________ Capital investment $80,000 $40,000 $64,000 Annual savings $24,000 $12,800 $19,200 Useful life (years) 8 12 16
0.6. Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen):...
0.6. Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen): Solar Panel A Solar Panel B Capital investment, $ 7,000 13.000 Annual operating expenses, SL 2.200 2.000 Market value, $ 1.000 2.30) Useful life, years 12 The MARR is 12% per year. Determine (using FW method) which alternative should be selected if the analysis period is 18 years, the repeatability assumption does not apply, and a solar panel can be leased for $6,000 per...
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...
Consider the mutually exclusive alternatives given in the table below: A B Capital investment $250,000 $400,000 $500,000 Uniform annual savings $131,900 $40,690 $44,050 Useful life (years) 10 20 5 Assuming repeatability, which alternative should the company select? (Choose the one best answer from the choices given below.) Do nothing Alternative A Alternative B Alternative C
Consider the mutually exclusive alternatives given in the table below: A B Capital investment $250,000 $400,000 $500,000 Uniform annual savings $131,900 $40,690 $44,050 Useful life...
4. (10 points) A firm is considering three mutually exclusive alternatives as part of a production improvement program. The alternatives are: Initial Cost $20,000 $30,000 $50,000 Uniform Annual Benefit $4,000 $5,000 $6,500 Useful Life Salvage Value $2,000 $9,000 The MARR is 10%. Which alternative do you recommend? Be sure to use the proper technique when comparing alternatives with different useful lives.
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%
Problem (2): Consider the following three mutually exclusive alternatives. MARR is 10%. Alternative 1 10,000 Alternative 2 14,500 Alternative 3 20,000 $3,000 increasing by 500 each year thereafter negligible $5,000 Initial investment Annual yielded returns Salvage Value Service life $5,000 $5,000 negligible 6 a) Compute the payback (PB) period and discounted PB period of each alternative. Based on the PB period, which alternative do you recommend? b) Using Annual-worth analysis, which alternative do you recommend?
Two mutually exclusive design alternatives are being considered for purchase. Doing nothing is also an option. The estimated cash flows for each alternative are given below. The MARR is 10% per year. Using the PW method, which alternative, if either, should be recommended? Capital Investment Annual Revenues Annual Expenses MV at end of useful life Useful Life IRR Alternative 1 $15,000 $8,000 $2,900 $2,000 4 years 17.2% Alternative 2 $23,000 $12,000 S3,000 $800 12 years 38.4%
QUESTION 2 Consider the following mutually exclusive alternatives: Alternative A Alternative B Capital investment $473,000 $1,114,000 Net annual receipts $104,100 $235,000 Both alternatives have a useful life of 20 years and no market value at that time. The MARR is 20 % per year. Determine the annual worth (AW) of the most profitable course of action. (Enter your answer as a number without the dollar sign.)
selected? urm is considering three mutually exclusive alter- atives as part of a production improvement program. The alternatives are as follows: First cost $15,000 Maintenance 1,600 and operating Annual benefit 8,000 Salvage value 3,000 Useful life, in years4 Installed cost Uniform annual benefit Useful life, in years A B C $10,000 $15,000 $20,000 1.625 1.625 1,890 10 20 For each alternative, the salvage value at the end of useful life is zero. At the end of 10 years, Alt. A...
0.6. Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen): Solar Panel A Solar Panel B Capital investment, $ 7,000 13.000 Annual operating expenses, SL 2.200 2.000 Market value, $ 1.000 2.30) Useful life, years 12 The MARR is 12% per year. Determine (using FW method) which alternative should be selected if the analysis period is 18 years, the repeatability assumption does not apply, and a solar panel can be leased for $6,000 per...
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...
Most questions answered within 3 hours.
-
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 7 minutes ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 1 hour ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 1 hour ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 1 hour ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 1 hour ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 2 hours ago -
Explain in steps on the following code
What would be the output when executed
using System;...
asked 2 hours ago -
Given the information in the table, which of the following
statements is CORRECT?
Stock A
Stock...
asked 2 hours ago -
Write MARIE assembly language programs that do the following:
Write a program that inputs an integer...
asked 2 hours ago -
Explain an understanding of services and protocols.
Explain the job of DNS.
Explain the three email...
asked 2 hours ago -
(As soon as possible) Balance each of the following equations
according to the half-reaction method:
H2O2(aq)...
asked 2 hours ago -
A thin rod with a mass of 3.5kg and a length L=1.5 m is oriented
horizontally....
asked 2 hours ago