a.
Analysis period = 15 yrs
NPW of B1 = -18000 -1700*(P/A,12%,15) - (18000-1500)*((P/F,12%,5) + (P/F,12%,10)) + 1500*(P/F,12%,15)
= -18000 -1700*6.810864 - (18000-1500)*(0.567427 + 0.321973) + 1500*0.182696
= -43979.5 ~ -44.0 thousand
NPW of B2 = -16000 -2400*(P/A,12%,15) - (16000-3500)*((P/F,12%,3) + (P/F,12%,6) +(P/F,12%,9) + (P/F,12%,12)) + 3500*(P/F,12%,15)
= -16000 -2400*6.810864 - (16000-3500)*(0.711780 + 0.506631 + 0.360610 + 0.256675) + 3500*0.182696
= -54652.84 ~ -54.7 thousand
As present cost of B1 is less, it should be selected
b.
Analysis period = 10 yrs
NPW of B1 = -18000 -1700*(P/A,12%,10) - (18000-1500)*(P/F,12%,5) + 1500*(P/F,12%,10)
= -18000 -1700*5.650223 - (18000-1500)*0.567427 + 1500*0.321973
= -36484.97 ~ -36.5 thousand
NPW of B2 = -16000 -2400*(P/A,12%,10) - (16000-3500)*((P/F,12%,3) + (P/F,12%,6) +(P/F,12%,9)) + 8000*(P/F,12%,10)
= -16000 -2400*5.650223 - (16000-3500)*(0.711780 + 0.506631 + 0.360610) + 8000*0.321973
= -46722.51 ~ -46.7 thousand
As present cost of B1 is less, it should be selected
Consider the two mutually exclusive projects in the table below. Salvage values represent the net proceeds...
Consider the two mutually exclusive projects in the table below. Salvage values represent the net proceeds (after tax) from disposal of the assets if they are sold at the end of each year. Both projects B1 and B2 will be available (or can be repeated) with the same costs and salvage values for an indefinite period. Click the icon to view the additional data about the mutually exclusive projects. Click the icon to view the interest factors for discrete compounding...
Consider the two mutually exclusive projects in the table below. Salvage values represent the not proceeds (after tax) from disposal of the assets if they are sold at the end of each year. Both projects B1 and B2 will be available (or can be repeated) with the same costs and salvage values for an indefinite period Click the icon to view the additional data about the mutually exclusive projects. Click the icon to view the interest factors for discrete compounding...
Consider the two mutual exclusive projects in the table below. Salvage values represent the net proceeds (after tax) from disposal of the assets if they are sold at the sold at the end of each year. Both Projects B1 and B2 will be available (or can be tepeated) with the same costs and salvage values for an indefinite period. A.) Assuming an infinite planning horizon, which project is better choice at MARR=11%? Use 15 years as tge common analysis period....
Consider the two mutually exclusive projects in the table below. Salvage values represent the net proceeds (after tax) from disposal of the assets if they are sold at the end of each year. Both projects B1 and B2 will be available (or can be repeated) with the same costs and salvage values for an indefinite period . Assuming an infinite planning horizon, which project is a better choice at MARR = 11%? Use 15 years as the common analysis period....
Can someone help me with part b? I can not seem to find the correct answer for present worth of B1 with 10 year planning horizon or the present worth of B2 with 10 year planning horizon. Consider the two mutually exclusive projects in the table below. Salvage values represent the net proceeds (after tax) from disposal of the assets if they are sold at the end of each year. Both projects B1 and B2 will be available (or can...
(a) Assuming an infinite planning horizon, which project is a better choice at MARR = 12%\ The present worth for project B1 is $ thousand The present worth for project B2 is $ thousand (b) With a 10 year planning horizon, which project is a better choice at MARR = 12% Consider the two mutually exclusive projects in the table below. Salvage values represent the net proceeds (after tax) from disposal of the assets if they are sold at the...
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Consider the two mutually exclusive investment projects given in the table below for which MARR=11%. On the basis of the IRR criterion, which project would be selected under an infinite planning horizon with project repeatability likely? The rate of return on the incremental investment is ?% Homework: HW #7 Save Score: 0 of 1 pt 10 of 10 (8 complete) HW Score: 78.33%, 7.83 of 10 pts Problem 7-56 (algorithmic) Question Help Consider the two mutually exclusive investment projects given...
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