Q4. Consider the following three projects cash flow Model A B C Purchase Cost $10,000 $15,000...
Q4. Consider the following three projects cash flow
|
Model |
A |
B |
C |
|
Purchase Cost |
$10,000 |
$15,000 |
$20,000 |
|
Annual Operation Cost |
$1,000 |
$800 |
$1,200 |
|
Annual Revenue |
$2,800 |
2,900 |
$4,000 |
|
Salvage Value |
$1, 000 |
2,000 |
3000 |
|
Useful Life |
10 Years |
10 Year |
10Years |
a- Calculate the Internal Rate of Return (IRR) for each cash flow?(5 marks)
b- If MARR is 10%; which project should be selected? (5 marks)
Please dont use excel for solving
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Q4. Consider the following three projects cash flow
Model
A
B
C
Purchase Cost
$10,000
$15,000...
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3a, b and c please help
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please show work for how to solve!
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Consider the following projects with life 8 years, Project First cost MARR=8% B C D $800 $600 500 Annual Benefit $120 $97 122 $500 0 Salvage Value $500 The B/C ratio of...
please show work for how to solve!
1. Consider the following three, mutually exclusive, projects. 1a. Using a benefit to cost ratio (BC) approach, choose the best project using a MARR of 9% and a project lifetime of each of 10 years. Your work must be shown for full credit. 40 points Initial Investment Annual Benefits (Income) Annual Cost (Maintenance) Salvage Value Project A $16,000 $3,500 $750 $2,930 Project B $13,000 $2,500 $400 $1,900 Project C $24,500 $4,500 $900 $1,780...
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