Homework Answers
Here,
| Alternative 1 | Alternative 2 | Alternative 3 | |
| Investment Cost | 41500 | 24100 | 28900 |
| Net Cash Flow per year | 19000 | 11400 | 10200 |
| Salvage Value | 1500 | 0 | 500 |
| Useful Life ( years) | 10 | 10 | 10 |
So Cash flow
| Alternative 1 | Alternative 2 | Alternative 3 | ||
| 11-06-2020 | Year 0 | -41500 | -24100 | -28900 |
| 11-06-2021 | Year 1 | 19000 | 11400 | 10200 |
| 11-06-2022 | Year 2 | 19000 | 11400 | 10200 |
| 11-06-2023 | Year 3 | 19000 | 11400 | 10200 |
| 11-06-2024 | Year 4 | 19000 | 11400 | 10200 |
| 11-06-2025 | Year 5 | 19000 | 11400 | 10200 |
| 11-06-2026 | Year 6 | 19000 | 11400 | 10200 |
| 11-06-2027 | Year 7 | 19000 | 11400 | 10200 |
| 11-06-2028 | Year 8 | 19000 | 11400 | 10200 |
| 11-06-2029 | Year 9 | 19000 | 11400 | 10200 |
| 11-06-2030 | Year 10 | 20500 | 11400 | 10700 |
| IRR | 44.67% | 46.23% | 33.33% | |
| Alternative 1 | Alternative 2 | Alternative 3 | ||
| 11-06-2020 | Year 0 | -41500 | -24100 | -28900 |
| 11-06-2021 | Year 1 | 19000 | 11400 | 10200 |
| 11-06-2022 | Year 2 | 19000 | 11400 | 10200 |
| 11-06-2023 | Year 3 | 19000 | 11400 | 10200 |
| 11-06-2024 | Year 4 | 19000 | 11400 | 10200 |
| 11-06-2025 | Year 5 | 19000 | 11400 | 10200 |
| 11-06-2026 | Year 6 | 19000 | 11400 | 10200 |
| 11-06-2027 | Year 7 | 19000 | 11400 | 10200 |
| 11-06-2028 | Year 8 | 19000 | 11400 | 10200 |
| 11-06-2029 | Year 9 | 19000 | 11400 | 10200 |
| 11-06-2030 | Year 10 | 20500 | 11400 | 10700 |
| IRR | 44.67% | 46.23% | 33.33% |
IRR is found by using XIRR function. Since Alternative B has the best IRR so Alternative B has to be chosen
Add Answer to:
2) In the design of a new facility, the mutually exclusive alternatives in the table below...
Consider the two mutually exclusive alternatives given in the table below. W NO Net Cash Flow Project A1 Project...
Consider the two mutually exclusive alternatives given in the table below. W NO Net Cash Flow Project A1 Project A2 - $12,000 - $14,000 5,000 6,200 5,000 6,200 5,000 6,200 (a) Determine the IRR on the incremental investment in the amount of $2,000. The IRR on incremental investment is %. (Round to one decimal place.)
Problems 4 The cash flows for three mutually exclusive alternatives are given in table below use...
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...
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 two mutually exclusive investment projects given in the table below. Click the icon to...
Consider the two mutually exclusive investment projects given in the table below. Click the icon to view the cash flows for the projects. (a) To use the IRR criterion, what assumption must be made in comparing a set of mutually exclusive investments with unequal service lives? Select all that apply. A. The required service period is 3 years. B. The required service period is infinity. C. Project A2 can be repeated at the same cost in the future. D. Project...
Consider the two mutually exclusive investment projects given in the table below. E Click the icon...
Consider the two mutually exclusive investment projects given in the table below. E Click the icon to view the cash flows for the projects. (a) To use the IRR criterion, what assumption must be made in comparing a set of mutually exclusive investments with unequal service lives? Select all that apply. A. Project A1 can be repeated at the same cost in the future. O B. The required service period is infinity. C. The required service period is 3 years....
Consider the two mutually exclusive investment projects given in the table below. E Click the icon...
Consider the two mutually exclusive investment projects given in the table below. E Click the icon to view the cash flows for the projects. (a) To use the IRR criterion, what assumption must be made in comparing a set of mutually exclusive investments with unequal service lives? Select all that apply. A. The required service period is infinity B. Project A1 can be repeated at the same cost in the future. C. Project A2 can be repeated at the same...
Consider the two mutually exclusive investment projects given in the table below. Click the icon to...
Consider the two mutually exclusive investment projects given in the table below. Click the icon to view the cash flows for the projects. (a) To use the IRR criterion, what assumption must be made in comparing a set of mutually exclusive investments with unequal service lives? Select all that apply. A. Project A1 can be repeated at the same cost in the future. B. The required service period is 3 years. OC. Project A2 can be repeated at the same...
The cash flow for two alternatives is shown in the table below. a) Determine which alternative...
The cash flow for two alternatives is shown in the table below. a) Determine which alternative should be selected based on present worth comparison (use i=10%). b) If your analysis period (study period) is just 3 years, what should be the salvage value of alternative A2 at the end of year 3 to make the two alternatives economically indifferent? A1 Year 0 -900 -400 A2 -1800 -300 -300 1 2 -400 3 -400+200 -300 4 5 6 -300 -300 -300...
9-54 Three mutually exclusive alternatives are beine A considered: $500 $400 $300 200 100 Initial...
9-54 Three mutually exclusive alternatives are beine A considered: $500 $400 $300 200 100 Initial cost Benefit at end of the first 200 200 year Uniform benefit at end of 100 125 subsequent years Useful life, in years 4 At the end of its useful life, an alternative is not replaced. If the MARR is 10%, which alternative should be selected (a) Based on the payback period? (b) Based on benefit-cost ratio analysis?
9-54 Three mutually exclusive alternatives are beine...
Xanadu Mining is considering three mutually exclusive alternatives, as shown in the table below. MARR is...
Xanadu Mining is considering three mutually exclusive alternatives, as shown in the table below. MARR is 10%/year. EOY A001 B002 2003 0 1 -$210 -$110 -$160 $80 $60 $80 $90 $60 $80 $100 $60 $80 $110 $70 $80 3 4 Clickhere to access the TVM Factor Table Calculator What is the future worth of each alternative? A001: $ B002: $ C003: $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar....
Consider the two mutually exclusive alternatives given in the table below. W NO Net Cash Flow Project A1 Project A2 - $12,000 - $14,000 5,000 6,200 5,000 6,200 5,000 6,200 (a) Determine the IRR on the incremental investment in the amount of $2,000. The IRR on incremental investment is %. (Round to one decimal place.)
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 two mutually exclusive investment projects given in the table below. Click the icon to view the cash flows for the projects. (a) To use the IRR criterion, what assumption must be made in comparing a set of mutually exclusive investments with unequal service lives? Select all that apply. A. The required service period is 3 years. B. The required service period is infinity. C. Project A2 can be repeated at the same cost in the future. D. Project...
Consider the two mutually exclusive investment projects given in the table below. E Click the icon to view the cash flows for the projects. (a) To use the IRR criterion, what assumption must be made in comparing a set of mutually exclusive investments with unequal service lives? Select all that apply. A. Project A1 can be repeated at the same cost in the future. O B. The required service period is infinity. C. The required service period is 3 years....
Consider the two mutually exclusive investment projects given in the table below. E Click the icon to view the cash flows for the projects. (a) To use the IRR criterion, what assumption must be made in comparing a set of mutually exclusive investments with unequal service lives? Select all that apply. A. The required service period is infinity B. Project A1 can be repeated at the same cost in the future. C. Project A2 can be repeated at the same...
Consider the two mutually exclusive investment projects given in the table below. Click the icon to view the cash flows for the projects. (a) To use the IRR criterion, what assumption must be made in comparing a set of mutually exclusive investments with unequal service lives? Select all that apply. A. Project A1 can be repeated at the same cost in the future. B. The required service period is 3 years. OC. Project A2 can be repeated at the same...
The cash flow for two alternatives is shown in the table below. a) Determine which alternative should be selected based on present worth comparison (use i=10%). b) If your analysis period (study period) is just 3 years, what should be the salvage value of alternative A2 at the end of year 3 to make the two alternatives economically indifferent? A1 Year 0 -900 -400 A2 -1800 -300 -300 1 2 -400 3 -400+200 -300 4 5 6 -300 -300 -300...
9-54 Three mutually exclusive alternatives are beine A considered: $500 $400 $300 200 100 Initial cost Benefit at end of the first 200 200 year Uniform benefit at end of 100 125 subsequent years Useful life, in years 4 At the end of its useful life, an alternative is not replaced. If the MARR is 10%, which alternative should be selected (a) Based on the payback period? (b) Based on benefit-cost ratio analysis?
9-54 Three mutually exclusive alternatives are beine...
Xanadu Mining is considering three mutually exclusive alternatives, as shown in the table below. MARR is 10%/year. EOY A001 B002 2003 0 1 -$210 -$110 -$160 $80 $60 $80 $90 $60 $80 $100 $60 $80 $110 $70 $80 3 4 Clickhere to access the TVM Factor Table Calculator What is the future worth of each alternative? A001: $ B002: $ C003: $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar....
Most questions answered within 3 hours.
-
What is the height of the tsunami in a water depth of 10 m
assuming the...
asked 1 minute ago -
A χ2 goodness-of-fit test was used to test the hypothesis that
students at a local university...
asked 4 minutes ago -
Problem 1
You have a loan outstanding. It requires making three annual
payments at the end...
asked 7 minutes ago -
A database imposes several requirements on the structure of
tables. Which of the following is not...
asked 6 minutes ago -
A
fragment of DNA is amplified from a single molecule of template DNA
for 22 cycles....
asked 17 minutes ago -
Smartphones: A poll agency reports that 32% of teenagers aged
12-17 own smartphones. A random sample...
asked 25 minutes ago -
blood glucose level for obese patient population have
a mean of 100 with a standard deviation...
asked 54 minutes ago -
(a) A lightbulb has a resistance of 165 Ω when operating with a
potential difference of...
asked 34 minutes ago -
Questions
Submission Question 2: Stacks
Problem
Write a program that keeps track of where cars are...
asked 33 minutes ago -
Using α = 0.05, test if the mean weight change
is less than 0 if a...
asked 52 minutes ago -
JAVA
Lab -Lottery Calculator
IMPORTANT: This lab is best implemented using a loop structure.
If you...
asked 40 minutes ago -
A diver springs upward with an initial speed of 2.1 m/s from a
3.5-m board.
(a)...
asked 48 minutes ago