Question 3. (Total 20 marks) Luqman Musa has a precasting concrete products plant in Kampung Jawa,...
The owners of a concrete batching plant have in use a power steam shovel, which, if repaired at a cost of $2000, would last another 10 years. Maintenance costs, operating costs, taxes, and insurance would be $2500 per year. The present salvage value of the power steam shovel is $6000; if it is repaired and used for 10 years, the estimated salvage value at the end of that time is estimated to be $500. A new power shovel could be...
answer
(a) A sugar refinery plant purchased one unit of turbo alternator with a cost of RM70,000 with salvage value of RM 6,000 by the end of its life of 5 years. Use Double Deduction Balance (DDB) method to determine the depreciation and Book Value by filling up Year Beginning Rate Depreciation Accumulated End Book Value Depreciation Value [Tahun] [Nilai [Kadar] [Susutan] [Susutan [Nilai Buku Permulaan Terkumpul] Akhir 1 2 2 3 4 5 (8 Marks / Markah) (b) An...
c. If the total capital investment budget is $150,000 , which
alternative should be selected ?
d.If the total capital investment budget available is $200,000 ,
which alternative should be selected ( if the alternatives are
independent ) ?
Four mutually exclusive alternatives are being evaluated, and their costs and revenues are itemized below. a. If the MARR is 15% per year and the analysis period is 12 years, use the PW method to determine which alternatives are economically acceptable...
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...
QUESTION 6 Data for two mutually exclusive alternatives are given below. Alternatives B $4,000 $800 А Initial Cost $5,000 Annual Benefits (beginning at end of $1,500 year 1) Annual Costs (beginning at end of year $500 1) Salvage Value $500 Useful Life (years) 5 $200 $0 10 Compute the net present worth for each alternative and choose the better alternative. MARR = 8%
Question 3 (20 points) Compare the two mutually exclusive alternatives on the basis of their capitalized costs at i= 10% per year. First cost, $ Annual cost, $/year Salvage value, $ Life, years -110,000 –54,000 9,000 - 700,000 -15.000 2,000,000
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...
Question 4. (20 points): The Big Discount Furniture Store (BDFS) needs a new generator. Compute the present worth for these mutually exclusive alternative and identify which you would recommend giving the interest ratei - 5,5% per year. BDFS use a 10-year planning horizon. Alternative Initial cost Salvage value Life $4500 $500 5 years $5500 $0 10 years
Assume a mutually exclusive scenario. Compare three alternatives on the basis of their capitalized cost (CC) at i=10% per year, which is the best alternative in this scenario? • Alternative 1, AW = $87,500 and n = (forever) • Alternative 2, PW = -$895,000 and n = (forever) • Alternative 3, First cost (FC) of $900,000, annual operating savings of 3,000 per year, salvage = $200,000, and n = (forever) Alternative 2 Alternative 3 None of them Alternative 1 QUESTION...
2) In the design of a new facility, the mutually exclusive alternatives in the table below are under consideration. Assume that the interest rate (MARR) is 15%. First draw the cash flow diagrams. Then, use the following methods to choose the best of these three feasible alternatives: Alternative 1 Alternative 2 Alternative 3 $ 11 $ 12 $ 13 Investment (first) cost (please see the table for your value) $ A1 $ A2 $ A3 Net cash flow per year...