Homework Answers
| B/C ratio = Present Value of Benefits/Present Value of Cost |
PV of Benefits = (Benefits - Disbenefits)*PVAF(r%,n)
PV of Benefits = (120,000 - 25,000)*[(1-1.08-10)/0.08]
PV of Benefits = 95,000*6.710081
PV of Benefits = $637,458
PV of Cost = Initial Cost + Annual Cost*PVAF(r%,n)
PV of Cost = 140,000 + 60,000*6.710081
PV of Cost = 140,000 + 402,605
PV of Cost = $542,605
B/C RATIO = 637,458/542,605
B/C RATIO = 1.175
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Consider the cash flows in problem #1. If MARR=20%,
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Techmac Manufacturing is considering the following two alternatives. The cost information for the two proposals for replacing an equipment are provided are in table below. Initial cost $120,000 Benefits/year $20,000 for the first 10 years S12,000 per year for 20 years. Machine Y S96,000 Machine X and $9,000 for the next 10 years 20 years Life Salvage value $40,000 MARR S20,000 10% a) Determine the engineering economic symbols for each b) Draw the Cash flow Diagram for each Alternative c)...
international genetic technologies inc. (InGen) is examining the following three mutually exclusive alternatives. 3) Using benefit-cost...
international genetic technologies inc. (InGen) is examining
the following three mutually exclusive alternatives.
3) Using benefit-cost ratio analysis, a 10-year useful life and a MARR of 25%, determine which of the following mutually exclusive models should be selected. А в C D E Initial Cost $100 $200 $300 $400 $500 $37 $60 $83 $137 $150 Annual Benefits 4) A big box company is using a benefit-cost ratio analysis to select which one of the 3 alternatives shown below should be...
QUESTION 6 Data for two mutually exclusive alternatives are given below. Alternatives B $4,000 $800 А...
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A company needs to choose between two replacement alternatives: Machine A and B. Using the corporate MARR of 15% per year and the table below, answer the following questions. Machine A Machine B First cost, $ -62,000 -77,000 Annual operating cost, $/year -15,000 -21,000 Salvage value, $ 8,000 10,000 Life, years What is the annual worth of Machine B? Choose the closest value. a) $-80,000 b) $-100,000 c) $-40,000 d) $-25,000
9- Two alternatives with identical benefits are being considered: 49 A B Initial cost $500 $800...
9- Two alternatives with identical benefits are being considered: 49 A B Initial cost $500 $800 Uniform annual cost 200 150 Useful life, in years 8 8 (a) Compute the payback period if Alt. B is purchased rather than Alt. A (b) Use a MARR of 10% and benefit-cost ratio analysis to identify the alternative that should be selected
Need cash flow diagram 04) Three mutually exclusive alternative are being considered Initial Cost Benefit at the end of the first Year Uniform Annual Benefits at end of subsequent years Useful Lif...
Need cash flow diagram
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5. Compare the following two alternatives by the IRR method, given MARR of 8%/year. Is the...
5. Compare the following two alternatives by the IRR method, given MARR of 8%/year. Is the incement in cost form A to B justified? Alt. Construction cost | Benefits Styr | Salvage Service Life (yrs 510,000 145,000 10,000 775,000 155,000 20,000
2. Consider the following two mutually exclusive alternatives: Cost, $ Uniform annual benefit, $ Useful life,...
2. Consider the following two mutually exclusive alternatives: Cost, $ Uniform annual benefit, $ Useful life, years 100,000 16,000 150,000 24,000 Using a 10% interest rate, and an annual cash flow analysis, determine which alternative should be selected. Draw the CFD.
Consider the cash flows in problem #1. If MARR=20%,
the benefit/cost ratio is closest to..
I know the answer is c 0.83 but I don't know how to
add an increasing O&M cost to my EUAC equation
1. Given the characteristics below, the simple payback period for Altermative XYZ. Inc. is elosest to. Alternative XYZ, Inc Initial Cost Benefits 13 $80,000 per year S30,000 in year l; O&M Costs Remainingvears?ncreasebr5% more than the previous year Salvage $25,000 36S 52,01 a)...
Techmac Manufacturing is considering the following two alternatives. The cost information for the two proposals for replacing an equipment are provided are in table below. Initial cost $120,000 Benefits/year $20,000 for the first 10 years S12,000 per year for 20 years. Machine Y S96,000 Machine X and $9,000 for the next 10 years 20 years Life Salvage value $40,000 MARR S20,000 10% a) Determine the engineering economic symbols for each b) Draw the Cash flow Diagram for each Alternative c)...
international genetic technologies inc. (InGen) is examining
the following three mutually exclusive alternatives.
3) Using benefit-cost ratio analysis, a 10-year useful life and a MARR of 25%, determine which of the following mutually exclusive models should be selected. А в C D E Initial Cost $100 $200 $300 $400 $500 $37 $60 $83 $137 $150 Annual Benefits 4) A big box company is using a benefit-cost ratio analysis to select which one of the 3 alternatives shown below should be...
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%
10. Use AW Benefit/Cost Ratio to select preferred Design of the following table. MARR= 9% (10 ptos) Design#1 Design#2 Design#3 Capital Investment Salvage Value Annual O&M costs Annual Benefits Useful life $1,240,000 90,000 215,000 462,800 $1,763,000 150,000 204,000 522,000 $1,475,000 120,000 201,000 485,500 15 yrs. 15 yr 15 yr
A company needs to choose between two replacement alternatives: Machine A and B. Using the corporate MARR of 15% per year and the table below, answer the following questions. Machine A Machine B First cost, $ -62,000 -77,000 Annual operating cost, $/year -15,000 -21,000 Salvage value, $ 8,000 10,000 Life, years What is the annual worth of Machine B? Choose the closest value. a) $-80,000 b) $-100,000 c) $-40,000 d) $-25,000
9- Two alternatives with identical benefits are being considered: 49 A B Initial cost $500 $800 Uniform annual cost 200 150 Useful life, in years 8 8 (a) Compute the payback period if Alt. B is purchased rather than Alt. A (b) Use a MARR of 10% and benefit-cost ratio analysis to identify the alternative that should be selected
Need cash flow diagram
04) Three mutually exclusive alternative are being considered Initial Cost Benefit at the end of the first Year Uniform Annual Benefits at end of subsequent years Useful Life in years $500 $200 $100 $400 $200 $125 $300 $200 $100 At the end of its useful life, an alternative is not replaced. If MARR is 10%, which alternatives should be selected? a) Based on the payback period? b) Based on benefit-cost ratio analysis c) Benefit/Costs Analysis using...
5. Compare the following two alternatives by the IRR method, given MARR of 8%/year. Is the incement in cost form A to B justified? Alt. Construction cost | Benefits Styr | Salvage Service Life (yrs 510,000 145,000 10,000 775,000 155,000 20,000
2. Consider the following two mutually exclusive alternatives: Cost, $ Uniform annual benefit, $ Useful life, years 100,000 16,000 150,000 24,000 Using a 10% interest rate, and an annual cash flow analysis, determine which alternative should be selected. Draw the CFD.
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