Homework Answers
AW of A = -40000*(A/P, 8%,8) - 12000
= -40000*0.174015 - 12000
= -18960.59
AW of B = -80000*(A/P, 8%,8) - 8000
= -80000*0.174015 - 8000
= -21921.18
AW of C = -60000*(A/P, 8%,8) - 10000
= -60000*0.174015 - 10000
= -20440.89
AW of D = -90000*(A/P, 8%,8) - 6000
= -90000*0.174015 - 6000
= -21661.33
As annual cost of A is lowest, it should be selected
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2. Using a MARR of 8%, a study period of 8 years, and an equivalent worth...
2. Using a MARR of 8%, a study period of 8 years, and a rate of...
2. Using a MARR of 8%, a study period of 8 years, and a rate of return method, determine which among the alternatives in the table below is the best choice: Capital Annual Alternative Investment Expenses $12000 $8000 $10,000 $6000 $40,000 $80,000 $60,000 $90,000 ABCD
Can someone help me with this problem 115 1. Explain the differences between evolutionary (spiral) and incremental life...
Can someone help me with this problem
115 1. Explain the differences between evolutionary (spiral) and incremental lifecycles 2. Using a MARR of 8%, a study period of 8 years, and a rate of return method, determine which among the alternatives in the table below is the best choice: Alternative Capital Investment $40,000 $80,000 $60,000 $90,000 Annual Expenses $12000 $8000 $10,000 $6000
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
Compare alternatives A and B with the present worth method if the MARR is 11% per year. Which one would you recommend? Assume repeatability and a study period of 12 years. $25,000 $10,000 at end of y...
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3. Compare the two following two alternatives using an equivalent worth method and a MARR of 12%. The repeatability ass...
3. Compare the two following two alternatives using an equivalent worth method and a MARR of 12%. The repeatability assumption is acceptable. Aternative I: Initial investment of $45,000, net revenue the first year of $8,000, increasing $4,000 per year for the six year useful life. Salvage value is estimated to be $6500. Alternative II: Initial investment of $60,000, uniform annual revenue of $12,000 for the five year useful life. Slavage value is estimated to be $9,000.
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...
Compare alternatives A and B with the present worth method if the MARR is 10% per year. Which one would you recommend? Assume repeatability and a study period of 20 years $15,000 $45,000 Capital Inve...
Compare alternatives A and B with the present worth method if the MARR is 10% per year. Which one would you recommend? Assume repeatability and a study period of 20 years $15,000 $45,000 Capital Investment Operating Costs $4,000 at end of year 1 and increasing by $400 per year thereafter $4,000 every 5 years 20 years $8,000 at end of year 1 and increasing by $800 per year thereafter None Overhaul Costs Life 10 years Salvage Value $8,000 if just...
site The estimated negative cash flows for three design alternatives are shown below. The MARR is...
site The estimated negative cash flows for three design alternatives are shown below. The MARR is 10% per year and the study period is six years. Which alternative is best based on the IRR method? Doing nothing is not an option. Alternative FOY A $80,900 0 $63,000 $70,400 Capital investment Annual expenses 1-6 6,900 11,100 9,150 Which alternative would you choose as a base one? Choose the correct answer below. O A. Alternative B OB. Alternative C OC. Alternative Analyze...
Comparing MEAS with equal lives. When lives are equal adjustments to cash flows are not required....
Comparing MEAS with equal lives. When lives are equal adjustments to cash flows are not required. The MEAs can be compared by directly comparing their equivalent worth (PW,凡V, or A calculated using the MARR. The decision will be the same regardless of the equivalent worth method you use. For a MARR of 12%, select from among the MEAs below. Alternatives 8 Capital investment-$150,000$85,000$75,000 $120,000 Annualrevenues$28,000 $16000 $5000 $22,000 -$700 Annual expenses Market Value (EOL $20.000 $ Lire lyears -$1.000 -$550...
For the following table, assume a MARR of 9% per year and a useful life for each alternative of six years that equals t...
For the following table, assume a MARR of 9% per year and a useful life for each alternative of six years that equals the study period. The rank-order of alternatives from least capital investment to greatest capital investment is Do Nothing A CB. Complete the IRR analysis by selecting the preferred alternative. Do Nothing A A C CB - $15,000 A Capital investment A Annual revenues A Annual costs - $3,250 - $2,000 4,000 900 460 -1,000 6,000 - 150...
2. Using a MARR of 8%, a study period of 8 years, and a rate of return method, determine which among the alternatives in the table below is the best choice: Capital Annual Alternative Investment Expenses $12000 $8000 $10,000 $6000 $40,000 $80,000 $60,000 $90,000 ABCD
Can someone help me with this problem
115 1. Explain the differences between evolutionary (spiral) and incremental lifecycles 2. Using a MARR of 8%, a study period of 8 years, and a rate of return method, determine which among the alternatives in the table below is the best choice: Alternative Capital Investment $40,000 $80,000 $60,000 $90,000 Annual Expenses $12000 $8000 $10,000 $6000
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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...
Compare alternatives A and B with the present worth method if the MARR is 10% per year. Which one would you recommend? Assume repeatability and a study period of 20 years $15,000 $45,000 Capital Investment Operating Costs $4,000 at end of year 1 and increasing by $400 per year thereafter $4,000 every 5 years 20 years $8,000 at end of year 1 and increasing by $800 per year thereafter None Overhaul Costs Life 10 years Salvage Value $8,000 if just...
site The estimated negative cash flows for three design alternatives are shown below. The MARR is 10% per year and the study period is six years. Which alternative is best based on the IRR method? Doing nothing is not an option. Alternative FOY A $80,900 0 $63,000 $70,400 Capital investment Annual expenses 1-6 6,900 11,100 9,150 Which alternative would you choose as a base one? Choose the correct answer below. O A. Alternative B OB. Alternative C OC. Alternative Analyze...
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