a) AWM = -20,000(A/P,10%,4) + 5000(A/F,10%,4) + 6000
= -20,000(0.3155)+5000(0.2155)+6000
= -6,310+1,077.5+6000
= $767.5
b)Use A = P(i) for AW of infinite life alternatives. Here, alternative N has infinite life.
AWN = -80,000(0.10)+10,000
= -8000+10,000= $2,000
Question 1 The cash flows given in table below are for two different alternatives. MARR =10%...
The cash flows for three different alternatives are given in the table below. Assume n = 8 years. Develop a choice table. What is the best alternative if MARR = 8%? The cash flows for three different alternatives are given in the table below. Assume n 8 years. Develop a choice table. what is the best alternative if MARR-7% PLACE CHOICE TABLE BELOW First cost S2,000 6,000 5,000 enefit 75400 750 Salvage 150 Value 0
The cash flows for three different alternatives are given in table below. Based on AROR analysis, the best alternative, for a MARR of = 19%, is Alt. A Alt. B Alt. C Initial Cost $5,000 9,000 7,500 Annual Benefits $1,457 2,518 2,133 12.4% ROR 14% 13% Life in years 5 Alt.A Do nothing Alt. C Alt.B
The cash flows for three different alternatives are given below. Assume that alternatives are replaced at the end of their useful lives. The MARR is 8%. Data P Q R Initial cost $5000 $1000 $2500 Benefits per year $650 0 $350 Salvage value $5000 $1760 $2500 Life 20 years 5 years 10 years The incremental ROR between alternatives “Q” and “R” is? withouut using excal
Problems 4 The cash flows for three mutually exclusive alternatives are given in table below use MARR = 4% Initial cost Annual benefits RoR Life in years Alt. A $11,000 $3.500 15% Alt. B $23,000 $6,500 13% Alt. C $20,000 $5,500 11% Which alternative should be selected based on a Payback period and () Net Future Worth analyses
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%
Consider the mutually exclusive alternatives given in the table below. MARR is 8 % per year. Assuming repeatability, what is the equivalent annual worth of the most profitable alternative? (Do not enter the dollar sign $ with your answer.) _____________________________________________________________ X Y Z _____________________________________________________________ Capital investment $80,000 $40,000 $64,000 Annual savings $24,000 $12,800 $19,200 Useful life (years) 8 12 16
USE ANNUAL WORTH Analysis Two mutually exclusive design alternatives are being considered. The estimated cash flows for each alternative are given in the following table with MARR = 10% per year. Suggest your recommendation by using multiple attribute annual worth AW analysis. Design A Design B Investment cost (RM) 28,000 55,000 One-off expenses 10,000 13,000 In year 4 (RM) Annual revenues (RM) 22,000 28,000 Market value (RM) 6,000 8,000 Useful life 10 years 6 years
Problem (2): Consider the following three mutually exclusive alternatives. MARR is 10%. Alternative 1 10,000 Alternative 2 14,500 Alternative 3 20,000 $3,000 increasing by 500 each year thereafter negligible $5,000 Initial investment Annual yielded returns Salvage Value Service life $5,000 $5,000 negligible 6 a) Compute the payback (PB) period and discounted PB period of each alternative. Based on the PB period, which alternative do you recommend? b) Using Annual-worth analysis, which alternative do you recommend?
ANSWER THE FOLLOWING QUESTIONS:- Three mutually exclusive design alternatives are being considered. The estimated cash flows for each alternative are given. The interest rate is 20% per year. At the conclusion of the useful life, the investment will be sold A C Investment cost $28,000 $55,000 $13,000 $28,000 $8,000 $40,000 Annual expenses Annual revenues $15,000 $23,000 $6,000 10 years $22,000 $32,000 13 $10,000 Salvage value Useful life 10 years 10 years A decision-maker can select one of these alternatives or...
4. You are to choose between two competing alternatives using Annual Cash Flow Analysis. Altemative A has an expected life of ten (10) years. After making the appropriate calculations for Alternative A, it was found that EUAW- $4,450. Given below are the characteristics of Alternative B. Based on these characteristics, determine which option, trany, you should choose. MARR-10%. (S5233) Alternative B $75,000 3,000 each year S30,000 the first year, dropping by $2,000 each year after $10,000 Initial Cost O&M Costs...