Engineering Economics: Show in Excel:
Answer:
EOY | Cash Flow | PV @ 12% | PV |
0 | -50000 | 1 | -50000 |
1 | 13000 | 0.8929 | 11607.7 |
2 | 12000 | 0.7972 | 9566.4 |
3 | 11000 | 0.7118 | 7829.8 |
4 | 10000 | 0.6355 | 6355 |
5 | 9000 | 0.5674 | 5106.6 |
6 | 8000 | 0.5066 | 4052.8 |
7 | 7000 | 0.4523 | 3166.1 |
8 | 6000 | 0.4039 | 2423.4 |
107.8 |
Present worth is $107.8
Engineering Economics: Show in Excel: 94. Consider the following cash flow profile: EOY Cash Flow -$50,000...
If using excel please show equations used/explanation 6 7 Question 1 (30 points): Consider an escalation rate of 11% for all costs (including environmental remediation cost) and 8% for all incomes (including salvage value) for a project. At the end of 11th year, the project a salvage value of $6,000 and an environmental remediation cost of $15,000. Year 0 1 2 3 4 10 11 Cost -54,000 -16,000 Income 0 13,000 12,000 10,000 10,000 9,000 9,000 8,000 8,000 7,000 7,000...
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Consider the following two projects: Year Cash Flow (Beta) Cash Flow (Zeta) 0 −$25,000 −$28,000 1 12,000 14,000 2 10,000 13,000 3 9,000 11,000 Instructions: 1. Using company cost of capital 15%, calculate the following investment criteria for both projects: a. Payback period b. Net Present Value (NPV) c. Internal Rate of Return (IRR) d. Profitability Index (PI) 2. If projects Beta and Zeta are independent, which one(s) will you choose? Why? 3. If projects Beta...
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Q6. [20 marks] The estimated annual cash flows of an investment project along with associated probabilities are given below. Determine the expected equivalent worth of this cash flow series at an interest rate of 12% per year (If your student ID number is even, use the FW method. Otherwise, use the PW method). EOY 0 Probability = 0.45 -$10,000 $4,200 $3,250 $6,000 Probability = 0.25 -$20,000 $3,500 $3,500 $5,000 Probability = 0.3 -$12,000 $3,100 $3,100 $3,100 2-6 7