Homework Answers
$ 40,831
Working:
| Present value | = | Annual Cash flows *Present value of annuity of 1 | ||||||
| = | $ 17,000 | * | 2.4018 | |||||
| = | $ 40,831 | |||||||
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Present Value of 1 Factor Present Value of an Annuity of 1 Factor Period 1/2 Yr...
Present Value of Present Value of 1 Factor an Annuity of 1 Factor Period 1/2Yr Full-Yr...
Present Value of Present Value of 1 Factor an Annuity of 1 Factor Period 1/2Yr Full-Yr 1/2 Yr Full-Yr 0.9449 0.8929 0.9449 0.8929 0.8929 0.7972 1.8378 1.6901 0.8437 0.7118 2.6814 2.4018 0.7972 0.6355 3.4786 3.0373 0.7533 0.5674 4.2319 3.6048 0.7118 0.5066 4.9437 4.1114 2 4 6 Assumption: Required annual effective rate (EPR) of return is 12%. If an investment pays you $8,500 every 6 months for 3 years, starting at the beginning of each 6 month period, what is its...
Use the table below to answer the following questions: Present Value of an Annuity of 1...
Use the table below to answer the following questions: Present Value of an Annuity of 1 Factor Present Value of 1 Factor Period 1/2 Yr Full-Yr 1/2 Yr Full-Yr 0.9449 0.8929 0.9449 0.8929 0.8929 0.7972 1.8378 1.6901 0.8437 0.7118 2.6814 2.4018 0.7972 0.6355 3.4786 3.0373 0.7533 0.5674 4.2319 3.6048 0.7118 0.5066 4.9437 4.1114 Assumption: Required annual effective rate (EPR) of 2 4 6 return is 12%. If an investment pays you $51,000 at the end of 3 years, what is...
Please help!! Table included!! Engineering economics homework!! Three mutually exclusive earth-moving pieces of equipment are being...
Please help!! Table included!! Engineering economics
homework!!
Three mutually exclusive earth-moving pieces of equipment are being considered for several large building projects in India over the next five years. The estimated cash flows for each alternative are given below. The construction company's MARR is 12% per year. Which of the three alternatives, if any, should be adopted? Assume repeatability is appropriate for this comparison. Caterpillar Deere Case Capital investment $20,000 $26,000 $17,000 Net annual revenue $6,500 $10,000 $5,500 Salvage value...
Need assistance with this question. Part A is: What is the conventional payback period for Option...
Need assistance with this question.
Part A is:
What is the conventional payback period for Option A? Answer
-
What is the conventional payback period for Option B? Answer
-
Part B is:
What is the Present Worth of Option A? Answer -
What is the Present Worth of Option B? Answer -
I really appreciate the assistance
You are considering two investment options. In option A, you have to invest S5,500 now and $700 three years from now. In...
Most likely estimates for a project are as follows. MARR Useful life Initial investment Receipts -...
Most likely estimates for a project are as follows. MARR Useful life Initial investment Receipts - Expenses (R-E 12% per year 6 years $7,000 $1,300/year Determine whether the statement "If the profit (R-E) is decreased by 6%, this project is not profitable." is true or false, Click the icon to view the relationship between the PW and the percent change in parameter. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12%...
Problem 12-12 (algorithmic) Question Help The tree diagram in figure below describes the uncertain cash flows...
Problem 12-12 (algorithmic) Question Help The tree diagram in figure below describes the uncertain cash flows for an engineering project. The analysis period is two years, and MARR = 12% per year. Based on this information, a. What are the E(PW), V(PW), and SD(PW) of the project? b. What is the probability that PW20? WClick the icon to view the tree diagram. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12%...
A small high-speed commercial centrifuge has the following net cash flows and abandonment values over its useful life....
A small high-speed commercial centrifuge has the following net cash flows and abandonment values over its useful life. The firm's MARR is 12% per year. Determine the optimal time for the centrifuge to be abandoned if its current MV is $7,500 and it won't be used for more than five years. End of Year - 1 2 3 4 Annual revenues less expenses $2,000 $2,000 $2,000 $2,000 Abandonment value of machine $6,100 5,000 $4,000 $2,400 Estimated MV. Click the icon...
TABLE 6.4 FACTORS FOR CALCULATING THE PRESENT VALUE OF $1 Discount Rate No. of Periods 2%...
TABLE 6.4 FACTORS FOR CALCULATING THE PRESENT VALUE OF $1 Discount Rate No. of Periods 2% 0.980 0.961 0.942 0.924 0.906 4% 0.9615 0.9246 0.8890 0.8548 0.8219 0.7903 0.7599 0.7307 0.7026 0.6756 6% 0.9434 0.8900 0.8396 0.7921 0.7473 0.7050 0.6651 0.6274 0.5919 0.5584 8% 0.9259 0.8573 0.7938 0.7350 0.6806 10% 0.9091 0.8264 0.7513 0.6830 0.6209 12% 0.8929 0.7972 0.7118 0.6355 0.5674 0.5066 0.4523 0.4039 0.3606 0.3220 14% 0.8772 0.7695 0.6750 0.5921 0.5194 16% 0.8621 0.7432 0.6407 0.5523 0.4761 18% 0.8475...
3. The Capitalpoor Company is considering purchasing a business machine for $100,000. An alternative is to...
3. The Capitalpoor Company is considering purchasing a business machine for $100,000. An alternative is to rent it for $35,000 at the beginning of each year. The rental would include all repairs and service. If the machine is purchased, a comparable repair and service contract can be obtained for $1,100 per year. The salesperson of the business machine firm has indicated that the expected useful service life of this machine is five years, with zero market value at the end...
A high-quality filter for tap water and a reusable drinking container cost $70 and typically will...
A high-quality filter for tap water and a reusable drinking container cost $70 and typically will last for three years. If a family drinks an average of eight cups of water per day (one cup is 8 fluid Ounces), the consumption of water is 547.5 gallons over a three-year period. Tap water costs $0.01 per gallon. Alternatively, bottled water may be purchased in 16-ounce bottles for $1.35 each. Compare the present worth of tap filtered water versus bottled water if...
Present Value of Present Value of 1 Factor an Annuity of 1 Factor Period 1/2Yr Full-Yr 1/2 Yr Full-Yr 0.9449 0.8929 0.9449 0.8929 0.8929 0.7972 1.8378 1.6901 0.8437 0.7118 2.6814 2.4018 0.7972 0.6355 3.4786 3.0373 0.7533 0.5674 4.2319 3.6048 0.7118 0.5066 4.9437 4.1114 2 4 6 Assumption: Required annual effective rate (EPR) of return is 12%. If an investment pays you $8,500 every 6 months for 3 years, starting at the beginning of each 6 month period, what is its...
Use the table below to answer the following questions: Present Value of an Annuity of 1 Factor Present Value of 1 Factor Period 1/2 Yr Full-Yr 1/2 Yr Full-Yr 0.9449 0.8929 0.9449 0.8929 0.8929 0.7972 1.8378 1.6901 0.8437 0.7118 2.6814 2.4018 0.7972 0.6355 3.4786 3.0373 0.7533 0.5674 4.2319 3.6048 0.7118 0.5066 4.9437 4.1114 Assumption: Required annual effective rate (EPR) of 2 4 6 return is 12%. If an investment pays you $51,000 at the end of 3 years, what is...
Please help!! Table included!! Engineering economics
homework!!
Three mutually exclusive earth-moving pieces of equipment are being considered for several large building projects in India over the next five years. The estimated cash flows for each alternative are given below. The construction company's MARR is 12% per year. Which of the three alternatives, if any, should be adopted? Assume repeatability is appropriate for this comparison. Caterpillar Deere Case Capital investment $20,000 $26,000 $17,000 Net annual revenue $6,500 $10,000 $5,500 Salvage value...
Need assistance with this question.
Part A is:
What is the conventional payback period for Option A? Answer
-
What is the conventional payback period for Option B? Answer
-
Part B is:
What is the Present Worth of Option A? Answer -
What is the Present Worth of Option B? Answer -
I really appreciate the assistance
You are considering two investment options. In option A, you have to invest S5,500 now and $700 three years from now. In...
Most likely estimates for a project are as follows. MARR Useful life Initial investment Receipts - Expenses (R-E 12% per year 6 years $7,000 $1,300/year Determine whether the statement "If the profit (R-E) is decreased by 6%, this project is not profitable." is true or false, Click the icon to view the relationship between the PW and the percent change in parameter. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12%...
Problem 12-12 (algorithmic) Question Help The tree diagram in figure below describes the uncertain cash flows for an engineering project. The analysis period is two years, and MARR = 12% per year. Based on this information, a. What are the E(PW), V(PW), and SD(PW) of the project? b. What is the probability that PW20? WClick the icon to view the tree diagram. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12%...
A small high-speed commercial centrifuge has the following net cash flows and abandonment values over its useful life. The firm's MARR is 12% per year. Determine the optimal time for the centrifuge to be abandoned if its current MV is $7,500 and it won't be used for more than five years. End of Year - 1 2 3 4 Annual revenues less expenses $2,000 $2,000 $2,000 $2,000 Abandonment value of machine $6,100 5,000 $4,000 $2,400 Estimated MV. Click the icon...
TABLE 6.4 FACTORS FOR CALCULATING THE PRESENT VALUE OF $1 Discount Rate No. of Periods 2% 0.980 0.961 0.942 0.924 0.906 4% 0.9615 0.9246 0.8890 0.8548 0.8219 0.7903 0.7599 0.7307 0.7026 0.6756 6% 0.9434 0.8900 0.8396 0.7921 0.7473 0.7050 0.6651 0.6274 0.5919 0.5584 8% 0.9259 0.8573 0.7938 0.7350 0.6806 10% 0.9091 0.8264 0.7513 0.6830 0.6209 12% 0.8929 0.7972 0.7118 0.6355 0.5674 0.5066 0.4523 0.4039 0.3606 0.3220 14% 0.8772 0.7695 0.6750 0.5921 0.5194 16% 0.8621 0.7432 0.6407 0.5523 0.4761 18% 0.8475...
3. The Capitalpoor Company is considering purchasing a business machine for $100,000. An alternative is to rent it for $35,000 at the beginning of each year. The rental would include all repairs and service. If the machine is purchased, a comparable repair and service contract can be obtained for $1,100 per year. The salesperson of the business machine firm has indicated that the expected useful service life of this machine is five years, with zero market value at the end...
A high-quality filter for tap water and a reusable drinking container cost $70 and typically will last for three years. If a family drinks an average of eight cups of water per day (one cup is 8 fluid Ounces), the consumption of water is 547.5 gallons over a three-year period. Tap water costs $0.01 per gallon. Alternatively, bottled water may be purchased in 16-ounce bottles for $1.35 each. Compare the present worth of tap filtered water versus bottled water if...
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