Consider four alternatives, each of which has an 8-year useful life: Initial cost Annual benefit Salvage...
Consider four alternatives, each of which has an 8-year useful life: Initial cost Annual benefit Salvage Value $100 $12.20 $75.00 $80 $12.00 $50.00 $60 $9.70 $50.00 $50 $12.20 $0 a. Construct a plot with interest rate on the x axis and PW on the y axis. Plot the PW vs interest rate for all 4 alternatives. Label graphs and make sure the fonts are readable. If your computer chooses very light colors, please change them to darker or brilliant colors...
Consider four alternatives, each of which has an 8-year useful life: A B C D Initial cost $100 $80 $60 $50 Annual benefit $12.20 $12.00 $9.70 $12.20 Salvage Value $75.00 $50.00 $50.00 $0 a) Construct a plot with interest rate on the x axis and PW on the y axis. Plot the PW vs interest rate for all 4 alternatives. Label graphs and make sure the fonts are readable. If your computer chooses very light colors,...
Consider the four independent alternatives that have 5-year useful life and no salvage value. Alternatives: A B C D Initial Cost (A)$400,000 (B)$100,000 (C)$200,000 (D)$500,000 Uniform Annual Benefit (A)$100,900 (B)$27,700 (C)$46,200 (D)$125,200 ROR (A)8.3% (B)11.9% (C)5% (D)8% Write an equation to determine what alternative to select if MARR is 6%. What is your recommendation if MARR is 10%? And if MARR is 15%?
Quiz 7 Consider three alternatives, each with a 10-year useful life. If the MARR is 10%, which alternative should be selected? Solve the problem by benefit-cost ratio analysis. $800 Cost (in millions) Annual benefit (in millions) Annual Disbenefits (in millions) $300 60 $150 33.5 142 4 Quiz 7 Consider three alternatives, each with a 10-year useful life. If the MARR is 10%, which alternative should be selected? Solve the problem by benefit-cost ratio analysis. $800 Cost (in millions) Annual benefit...
2. Consider the following two mutually exclusive alternatives: Cost, $ Uniform annual benefit, $ Useful life, years 100,000 16,000 150,000 24,000 Using a 10% interest rate, and an annual cash flow analysis, determine which alternative should be selected. Draw the CFD.
5) Evaluate the following 3 alternatives. $1,500 initial cost $1,848 $3,048 annual benefit $1,400 $1,500 $1,200 useful life 2 years 6 years 3 years salvage value $1,000 1,000 $1,500 Identical replacements will be made for A and C at the end of useful lifes. What is the best choice? (i-10%/yr) a) C b)A c)B d) doing nothing 5) Evaluate the following 3 alternatives. $1,500 initial cost $1,848 $3,048 annual benefit $1,400 $1,500 $1,200 useful life 2 years 6 years 3...
Consider three mutually exclusive alternatives, each with a 15-year useful life. If the MARR is 12%, which alternative should be selected? Solve the problem by using benefit-cost ratio analysis, Net Present Value, and Internal Rate of Return. A B C Cost $800 $300 $150 Uniform Annual Benefit 130 60 35
13. Using benefit-cost ratio analysis, b 5 year useful life, and a 15% MARR, determine which of the following mutually exclusive alternatives should be selected. D 310 380 470 Cost Annual Benefit Salvage/Value Ule OS 8 90
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...
5-68 Consider A-E, five mutually exclusive alternatives: A B C D E Initial cost $800 $800 $800 $800 $800 Uniform annual benefits For first 6 years 125 150 100 125 150 For last 6 years 40 80 120 50 50 The interest rate is 8%. If all the alternatives have a 12-year useful life and no salvage value, which alternative should be selected?