Homework Answers
Calculation for FW of alternative 1
| Year | Cash flow | FVIFA (14%) | Factorised cash flow |
| 0 | -$30,000 | 1.9254 | $ ( 57,762) |
| 1 | $ 15,000 | 1.6890 | $ 25,335 |
| 2 | $ 15,000 | 1.4815 | $ 22,222.50 |
| 3 | $ 15,000 | 1.2996 | $ 19,494 |
| 4 | $ 14,000 | 1.1400 | $ 15,960 |
| 5 | $ 15,000 | 1.0000 | $ 15,000 |
| FW of alternative 1 = | $ 402,49.50 |
Calculation for FW of alternative 2
| Year | Cash flow | FVIFA(14%) | Factorised cash flows |
| 0 | - | - | - |
| 1 | - | - | - |
| 2 | -$30,000 | 1.4815 | $(44,445) |
| 3 | $17,000 | 1.2996 | $ 22,093.20 |
| 4 | $17,000 | 1,1400 | $ 19,380 |
| 5 | $17,000 | 1.0000 | $ 17,000 |
| FW of alternative 2= | $ 14,028.20 |
Alternative 1 should be selected.
Add Answer to:
Quick answer please!
Today you have $30.000 tons Two inventives are avait you one would require...
Today you have $30 000 to invest. WO inves nen alternat" es are ava' able to...
Today you have $30 000 to invest. WO inves nen alternat" es are ava' able to you One would require you o inves your $30 00 now; he other would require the S30 000 i ves:ment wo years rom now. In either case, he investments wi end five years from now. The cash flows for Bach Alternative are provided below. Using MARR of 15%, what should you do wth the $30,000 you have? Cllck the icon to view the altematves...
This Question: 15 pts Hime Remaining: 01:07:40 Submit Test 2 of 6 (0 complete) This Test:...
This Question: 15 pts Hime Remaining: 01:07:40 Submit Test 2 of 6 (0 complete) This Test: 100 pts possible Today, you have $35,000 to invest. Two investment alternatives are available to you. One would require you to invest your $35,000 now, the other would require the $35,000 investment two years from now. In either case the investments will end five years from now. The cash flows for each alternative are provided below. Using a MARR of 14% what should you...
Suppose you have $200,000 cash today and you can invest it to become worth $2,000,000 in...
Suppose you have $200,000 cash today and you can invest it to
become worth $2,000,000 in 13 years. What is the present purchasing
power equivalent of this $2,000,000 when the average inflation rate
over the first six years is 4% per year, and over the last seven
years it will be 8% per year?
Suppose you have $200,000 cash today and you can invest it to become worth $2,000,000 in 13 years. What is the present purchasing power equivalent of...
Suppose that you have an old car that is a real gas guzzler. It is 10...
Suppose that you have an old car that is a real gas guzzler. It is 10 years old and could be sold to a local dealer for $500 cash. The annual maintenance costs will average $800 per year into the foreseeable future, and the car averages only 10 miles per gallon. Gasoline costs $3.40 per gallon, and you drive 17,000 miles per year. You now have an opportunity to replace the old car with a better one that costs $6,000....
Please show the answer clearly Three mutually exclusive earth moving pieces of equipment are being considered...
Please show the answer clearly
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 18% per year. Which of the three alternatives, if any, should be adopted? Assume repeatability is appropriate for this comparison Caterpillar Deere Case Capital investment $22,000 $26,200 $17.500 Net annual revenue $7,500 $9,500 $5,000 Salvage value $4,500...
Please help!!! Engineering Economics class homework!! attached below are the tables needed!! first picture is alterna...
Please help!!! Engineering Economics class homework!!
attached below are the tables needed!! first picture is
alternative options, second picture is i=9% values, third picture
is i=18% values!!!
Potable water is in short supply in many countries. To address this need, two mutually exclusive water purification systems are being considered for implementation in China. Doing nothing is not an option. Assume the repeatability of cash flows for alternative 1. a. Use the PW method to determine which system should be selected...
You are considering two investment options. In option A. you have to invest $6,000 now and...
You are considering two investment options. In option A. you have to invest $6,000 now and $700 three years from now. In option B. you have to invest $3,000 now, $1,300 a year from now, and $800 three years from now. In both options, you will receive four annual payments of $1,900 each. (You will get the first payment a year from now.) Which of these options would you choose based on (a) the conventional payback criterion, and (b) the...
Suppose you have $300,000 cash today and you can invest it to become worth $3,000,000 in...
Suppose you have $300,000 cash today and you can invest it to become worth $3,000,000 in 14 years. What is the present purchasing power equivalent of this $3,000,000 when the average inflation rate over the first six years is 5% per year, and over the last eight years it will be 9% per year? Click the icon to view the interest and annuity table for discrete compounding when = 5% per year Click the icon to view the interest and...
Potable water is in short supply in many countries. To address this need, two mutually exclusive...
Potable water is in short supply in many countries. To address
this need, two mutually exclusive water purification systems are
being considered for implementation in China. Doing nothing is not
an option. Assume the repeatability of cash flows for alternative
1.
a. Use the PW method to determine which system should be
selected when MARR = 7% per year.
b. Which system should be selected when MARR = 15% per
year?
a. The PW of system 1 is $_______. (Round...
A high-speed electronic assembly machine was purchased two years ago for $50,000. At the present ...
A high-speed electronic assembly machine was purchased two years ago for $50,000. At the present time, it can be sold for $26,000 and replaced by a newer model having a purchase price of $42,500; or it can be kept in service for a maximum of one more year. The new assembly machine, if purchased, has a useful life of not more than two years. If the before-tax MARR is 18%, when should the old assembly machine be replaced? Use the...
Today you have $30 000 to invest. WO inves nen alternat" es are ava' able to you One would require you o inves your $30 00 now; he other would require the S30 000 i ves:ment wo years rom now. In either case, he investments wi end five years from now. The cash flows for Bach Alternative are provided below. Using MARR of 15%, what should you do wth the $30,000 you have? Cllck the icon to view the altematves...
This Question: 15 pts Hime Remaining: 01:07:40 Submit Test 2 of 6 (0 complete) This Test: 100 pts possible Today, you have $35,000 to invest. Two investment alternatives are available to you. One would require you to invest your $35,000 now, the other would require the $35,000 investment two years from now. In either case the investments will end five years from now. The cash flows for each alternative are provided below. Using a MARR of 14% what should you...
Suppose you have $200,000 cash today and you can invest it to
become worth $2,000,000 in 13 years. What is the present purchasing
power equivalent of this $2,000,000 when the average inflation rate
over the first six years is 4% per year, and over the last seven
years it will be 8% per year?
Suppose you have $200,000 cash today and you can invest it to become worth $2,000,000 in 13 years. What is the present purchasing power equivalent of...
Suppose that you have an old car that is a real gas guzzler. It is 10 years old and could be sold to a local dealer for $500 cash. The annual maintenance costs will average $800 per year into the foreseeable future, and the car averages only 10 miles per gallon. Gasoline costs $3.40 per gallon, and you drive 17,000 miles per year. You now have an opportunity to replace the old car with a better one that costs $6,000....
Please show the answer clearly
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 18% per year. Which of the three alternatives, if any, should be adopted? Assume repeatability is appropriate for this comparison Caterpillar Deere Case Capital investment $22,000 $26,200 $17.500 Net annual revenue $7,500 $9,500 $5,000 Salvage value $4,500...
Please help!!! Engineering Economics class homework!!
attached below are the tables needed!! first picture is
alternative options, second picture is i=9% values, third picture
is i=18% values!!!
Potable water is in short supply in many countries. To address this need, two mutually exclusive water purification systems are being considered for implementation in China. Doing nothing is not an option. Assume the repeatability of cash flows for alternative 1. a. Use the PW method to determine which system should be selected...
You are considering two investment options. In option A. you have to invest $6,000 now and $700 three years from now. In option B. you have to invest $3,000 now, $1,300 a year from now, and $800 three years from now. In both options, you will receive four annual payments of $1,900 each. (You will get the first payment a year from now.) Which of these options would you choose based on (a) the conventional payback criterion, and (b) the...
Suppose you have $300,000 cash today and you can invest it to become worth $3,000,000 in 14 years. What is the present purchasing power equivalent of this $3,000,000 when the average inflation rate over the first six years is 5% per year, and over the last eight years it will be 9% per year? Click the icon to view the interest and annuity table for discrete compounding when = 5% per year Click the icon to view the interest and...
Potable water is in short supply in many countries. To address
this need, two mutually exclusive water purification systems are
being considered for implementation in China. Doing nothing is not
an option. Assume the repeatability of cash flows for alternative
1.
a. Use the PW method to determine which system should be
selected when MARR = 7% per year.
b. Which system should be selected when MARR = 15% per
year?
a. The PW of system 1 is $_______. (Round...
A high-speed electronic assembly machine was purchased two years ago for $50,000. At the present time, it can be sold for $26,000 and replaced by a newer model having a purchase price of $42,500; or it can be kept in service for a maximum of one more year. The new assembly machine, if purchased, has a useful life of not more than two years. If the before-tax MARR is 18%, when should the old assembly machine be replaced? Use the...
Most questions answered within 3 hours.
-
The length of a pencil is measured to be 10.00 cm with a ruler.
What is...
asked 4 minutes ago -
A 120 cm^3 box contains helium at a pressure of 1.80 atm and a
temperature of...
asked 9 minutes ago -
Given that Kb for the weak base analine is 3.8 X
10-10, which of the following...
asked 12 minutes ago -
A uniform, solid sphere of radius 4.50 cm and mass 4.50 kg
starts with a purely...
asked 8 minutes ago -
A sniper fires a rifle bullet into a gasoline tank, making a
hole 51.0 m below...
asked 12 minutes ago -
The US Census Bureau gathered data regarding yearly gas sales
for residents of different states. Wyoming...
asked 32 minutes ago -
A person in a casino decides to play blackjack until he loses a
game, but he...
asked 35 minutes ago -
mode field diameter (MFD) is an important parameter in
characterizing single mode fibre properties which takes...
asked 26 minutes ago -
Question 4: What is the significance of those strange
“36.79%” and “63.21%” numbers the procedure? That...
asked 32 minutes ago -
Rules of implementation!:
You may NOT modify any of the files except Expression.java in
ANY way....
asked 34 minutes ago -
Arbitration of disputes under the purview of "lemon laws" under
state statute is:
not required by...
asked 47 minutes ago -
Describe three pieces of evidence that mitochondria and evolved
from symbiotic mutualisms between a eukaryote (or...
asked 55 minutes ago