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Here the net present worth of option B is positive and greater than the net present worth of option A.
We have to choose option B as better option.
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Question 7 (15 points) Consider 2 alternatives with the following cash flows below at interest rate...
Question 1 The cash flows given in table below are for two different alternatives. MARR =10%...
Question 1 The cash flows given in table below are for two different alternatives. MARR =10% Data IN Initial Cost Annual Benefits Salvage Value Useful Life in years M $20,000 $6,000 $5,000 $80,000 $10,000 $20,000 a) Determine the annual worth of alternative M b) Determine the annual worth of alternative N
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%
Determine whether either of the alternatives below should be selected. Use an MARR of 15% per...
Determine whether either of the alternatives below should be
selected. Use an MARR of 15% per year. Incremental Rate of Return
Analysis must be used. (PLEASE DO NOT USE EXCEL).
First Cost Annual Operating Cost Annual Repair Cost Annual Increase in Repair Cost Salvage Value Life (years) Project A -$60,000 -$15,000 -$5,000 -$1,000 $8,000 15 Project B -$90,000 -$8,000 -$2,000 -$1,500 $12,000 15
6. Analyze the two economic alternatives described below and seleot the annual interest rate of 7%...
6. Analyze the two economic alternatives described below and seleot the annual interest rate of 7% for both alternatives. All values are in$. best one. Use an Alternative Initial Cost Yearly Operating Expenses Annual Revenues Salvage Value Life (years) 22,000 10,000 2,000 3,000 6,000 10.000 2
Alternatives X and Y are described below. X involves using a CISC microprocessor while alternative Y...
Alternatives X and Y are described below. X involves using a CISC microprocessor while alternative Y is about using ASIC microprocessor. Wh you select based on their Future Worth? Use an annual interest rate of 5% for both alternatives. All values are in $ 7. ich microprocessor would Alternative Initial Cost Yearly Operating Expenses 6,000 500 2,500 1,500 6 4,000 Annual Revenues Salvage Value Life (years 1,000 900
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...
Question 12 15 points For alternatives shown in the table below you are trying to decide which alternative you should choose based on their capitalized costs (CC). Use an interest rate of 10% per yea...
Question 12 15 points For alternatives shown in the table below you are trying to decide which alternative you should choose based on their capitalized costs (CC). Use an interest rate of 10% per year. Machine A Machine B First cost (AED) 20,000 240,000 Annual maintenance cost per year, AED5,000 2,300 Periodi e cost every 10 years, AED 10,000 Salvage cost 2000 Life, years Match the closest correct answers for the below questions: A. [Alternative A] B. -44,483.50] C. I-269,275]...
3. (15 points) For the alternatives show below, only one can be chosen. The first and...
3. (15 points) For the alternatives show below, only one can be chosen. The first and annual costs are estimated. Both options are expected to have a 3-year useful life. If the MARR is 20% per year, determine which alternative should be selected based on rate of return. Calculate by hand or use spreadsheet. Robot X First Cost, $ Maintenance & Operations, $/year Salvage Value, $ Revenue, $/year Life -84,000 -31,000 40,000 96,000 Robot Y -146,000 -28,000 47,000 119,000 3...
3. (15 points) For the alternatives show below, only one can be chosen. The first and...
3. (15 points) For the alternatives show below, only one can be chosen. The first and annual costs are estimated. Both options are expected to have a 3-year useful life. If the MARR is 20% per year, determine which alternative should be selected based on rate of return. Calculate by hand or use spreadsheet. First Cost, $ Maintenance & Operations, $/year Salvage Value, $ Revenue, $/year Robot X -84,000 -31,000 40,000 96,000 Robot Y -146,000 -28,000 47,000 119,000 Life
Problem (2): Consider the following three mutually exclusive alternatives. MARR is 10%. Alternative 1 10,000 Alternative...
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?
Question 1 The cash flows given in table below are for two different alternatives. MARR =10% Data IN Initial Cost Annual Benefits Salvage Value Useful Life in years M $20,000 $6,000 $5,000 $80,000 $10,000 $20,000 a) Determine the annual worth of alternative M b) Determine the annual worth of alternative N
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%
Determine whether either of the alternatives below should be
selected. Use an MARR of 15% per year. Incremental Rate of Return
Analysis must be used. (PLEASE DO NOT USE EXCEL).
First Cost Annual Operating Cost Annual Repair Cost Annual Increase in Repair Cost Salvage Value Life (years) Project A -$60,000 -$15,000 -$5,000 -$1,000 $8,000 15 Project B -$90,000 -$8,000 -$2,000 -$1,500 $12,000 15
6. Analyze the two economic alternatives described below and seleot the annual interest rate of 7% for both alternatives. All values are in$. best one. Use an Alternative Initial Cost Yearly Operating Expenses Annual Revenues Salvage Value Life (years) 22,000 10,000 2,000 3,000 6,000 10.000 2
Alternatives X and Y are described below. X involves using a CISC microprocessor while alternative Y is about using ASIC microprocessor. Wh you select based on their Future Worth? Use an annual interest rate of 5% for both alternatives. All values are in $ 7. ich microprocessor would Alternative Initial Cost Yearly Operating Expenses 6,000 500 2,500 1,500 6 4,000 Annual Revenues Salvage Value Life (years 1,000 900
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...
Question 12 15 points For alternatives shown in the table below you are trying to decide which alternative you should choose based on their capitalized costs (CC). Use an interest rate of 10% per year. Machine A Machine B First cost (AED) 20,000 240,000 Annual maintenance cost per year, AED5,000 2,300 Periodi e cost every 10 years, AED 10,000 Salvage cost 2000 Life, years Match the closest correct answers for the below questions: A. [Alternative A] B. -44,483.50] C. I-269,275]...
3. (15 points) For the alternatives show below, only one can be chosen. The first and annual costs are estimated. Both options are expected to have a 3-year useful life. If the MARR is 20% per year, determine which alternative should be selected based on rate of return. Calculate by hand or use spreadsheet. Robot X First Cost, $ Maintenance & Operations, $/year Salvage Value, $ Revenue, $/year Life -84,000 -31,000 40,000 96,000 Robot Y -146,000 -28,000 47,000 119,000 3...
3. (15 points) For the alternatives show below, only one can be chosen. The first and annual costs are estimated. Both options are expected to have a 3-year useful life. If the MARR is 20% per year, determine which alternative should be selected based on rate of return. Calculate by hand or use spreadsheet. First Cost, $ Maintenance & Operations, $/year Salvage Value, $ Revenue, $/year Robot X -84,000 -31,000 40,000 96,000 Robot Y -146,000 -28,000 47,000 119,000 Life
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?
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