ANSWER:
1) We will eliminate do nothing because ror of the alternatives is greater then marr.
2) Eliminate b because its ror < marr that is 13% < 15%
3) Eliminate c Because it is dominated by a
Alternative A is selected as all the other alternatives have been eliminated.
Imaginary Inc. is considering three mutually exclusive brands of state-of-the-art laptops for its employees to increase...
Final Finishing is considering three mutually exclusive alternatives for a new polisher. Each alternative has an expected life of 10 years and no salvage value. Polisher 1 requires an initial investment of $20,000 and provides annual benefits of $4,465. Polisher 2 requires an initial investment of $10,000 and provides annual benefits of $1,770. Polisher 3 requires an initial investment of $15,000 and provides annual benefits of $3,580. MARR is 15%/year. Show the comparisons and internal rates of return used to...
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 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...
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...
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...
I only need help with doing Part C manually
4-1 You are considering three mutually exclusive design alternatives. Do nothing is also an option. MARR is 15%. A B Category First cost, $ Annual Expense, $/yr Annual revenue, $/yr Salvage value, $ Useful life, yrs ROR 26,000 12,500 20,000 5,000 10 26.60% 52,000 12,000 25,000 9,000 10 22.13% 40,000 21,000 29,000 8,000 10 16.30% a. What is the present worth of each alternative? Which would you choose? b. Perform an...