Please, show the formulas and step by step on how to find the answer!!
Use PW analysis
PW of A = -2000 + 800(P/A, 5%, 3)
= -2000 + 800*(1.05^3-1)/(0.05*1.05^3)
= 178.60
PW of B = -2800 + 1100(P/A, 5%, 3)
= -2800 + 1100*(1.05^3-1)/(0.05*1.05^3)
= 195.57
Since PW of B is greater than PW of A select B.
Please, show the formulas and step by step on how to find the answer!! Consider the...
Please, show the formulas and step by step on how to find the answer!! Two mutually exclusive alternatives of A and B have both useful lives of 5 years. For Alternative A, there is an initial cost of $2,500 and annual benefits of $746. For Alternative B, there is an initial cost of $6,000 and annual benefits of $1,664. By following each of the following methods, define which alternative should be chosen? (30 pts) i. Annual Cash Flow Analysis (the...
Please, show the formulas and step by step on how to find the answer!!
1) Consider these two machines (alternatives): (12 Points) B A $5000 $1750 $700 $8200 $1850 $500 First Cost Uniform annual benefit Salvage Value Useful Life, in Years 4 If the MARR (minimum attractive rate of return) -7 % , which alternative should be selected? Use the Present worth Analysis method. 1) Consider these two machines (alternatives): (12 Points) B A $5000 $1750 $700 $8200 $1850 $500 First Cost Uniform annual benefit Salvage Value Useful Life, in Years 4 If the...
Please show how the IRR formula is done. Thank you! Problem 7-63] If 8% is considered the minimum attractive rate of return, which alternative should be selected using an incremental analysis? Year X -$5000 0 -$5000 1 -3000 2000 2 4000 2000 3 4000 2000 4 4000 2000
Please, show the formulas and step by step on how to find the answer!! A mining company makes annual deposits of $240,000 into a reclamation fund for 20 years. What interest should the investment earn if the company must have $10 million when the mine is closed? (15 pts)
1. Given the costs and benefits of two water pumps, what is the rate of return on the difference of these alternatives? Year -$3000 +800 +800 +800 +800 +800 -$3800 +1200 +1200 +1200 +1200 +1200 What is your choice of these 2 alternatives and why? 2. The manager of a local restaurant is trying to decide whether to buy a charcoal broiling unit or an electric grill for cooking hamburgers. A market study shows customers prefer charcoal broiling but the...
please show excel formulas so I can understand the problem THANKS 9-50 Consider four mutually exclusive alternatives: (Α) A B C D Cost $75.0 $50.0 $15.0 $90.0 Uniform annual 18.8 13.9 4.5 23.8 benefit Each alternative has a 5-year useful life and no sal- vage value. The MARR is 10%. Which alternative should be selected, based on (a) The payback period (b) Future worth analysis (c) Benefit-cost ratio analysis
Please show all of your work! Thank you [Problem 7-63] If 8% is considered the minimum attractive rate of return, which alternative should be selected using an incremental analysis? Year 0 1 х -$5000 -3000 4000 4000 4000 -$5000 2000 2000 2000 2000
This is my 3rd time posting .. Please show step by ste how the answer is solved as in show what was clicked in SOLVER and which cells were selected . USE SOLVER IN EXCEL TO ANSWER PROBLEM. Show step by step how you got your answer SOLVER | 387 18-2. Seven new projects are being proposed for our division. Each would require investments over the next three years, but each ultimately would result in a positive return on our...
Please show all the steps you've done to reach the final answer. I am trying to learn, so please show your work. Typing your answer is important. You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for manufacturing high-pressure hydraulic hoses. The parameters associated with each alternative have been estimated. Which one should be selected on the basis of a present worth comparison at an interest rate of 13% per year? Why is...