Expected initial cost = 130000 * 0.25 + 240000 * 0.60 + 340000 * 0.15 = 227500
Expected revenue = 32000*0.15 + 43000*0.55 + 53000*0.3 = 44350
MARR = 8%, life = 10 yrs
EUAW = -227500*(A/P,8%,10) + 44350 = -227500 * 0.149029 + 44350 = 10445.90 = 10446
= 10400 (nearest 100)
A project has a life of 10 years and no salvage value. Your firm uses an...
A project has a life of 10 years and no salvage value. Your firm uses an MARR of 8% to evaluate projects. The project has uncertain costs and revenue as shown in the table below:Determine the expected value of the EUAW for the project. Express your answer in $ to the nearest $100.
A project has a life of 10 years and no salvage value. Your firm uses an MARR of 8% to evaluate projects. The project has uncertain costs and revenue as shown in the table below:Determine the risk for the project expressed as the standard deviation of the expected value of the EUAW. Express your answer in $ to the nearest $100.
A project has a life of 10 years and no salvage value. Your firm uses an MARR of 8% to evaluate projects. The project has uncertain costs and revenue as shown in the table below: Determine the risk for the project expressed as the standard deviation of the expected value of the EUAW. Express your answer in $ to the nearest $100.
Ultra Co. is considering two mutually exclusive projects, both of which have an economic service life of one year with no salvage value. The initial cost and the net-year-end revenue for each project are given in the following table: Project 1 Project 2 Initial Cost $1,200 $1,000 Probability Revenue Probability Revenue Net Revenue given in PW 0.25 $1,800 0.3 $2,400 0.35 $2,200 0.3 $1,600 0.15 $3,500 0.2 $2,700 0.25 $2,600 0.2 $2,800 Assuming both projects are statistically independent of each...
Your firm is implementing a new energy efficiency project. The initial cost will be $235.000. and the useful life of the needed equipment is 8 years. The firm is uncertain about the annual savings. The optimistic value for the savings is $37,000 per year, the most likely value is $29,000 per year, and the pessimistic value is $18,000 per year. The MARR is 10% a) Use the range of estimates to u te the mean annual savings by the beta...
Please show code if you use excel thank you. Project A has a first cost of $3,500, annual operating and maintenance costs of $1,900, annual savings of $2,300, and a salvage value of $1,800 at the end of its 5 year useful life. Project B has a first cost of $6,000, annual operating and maintenance costs of $1,600, annual savings of $2,500, and a salvage value of $2,000 at the end of its 7 year useful life. Using a MARR...
A project that cost $108000 has a useful life of 5 years and a salvage value of $3000. The internal rate of return is 12% and the annual rate of return is 18%. The amount of the annual net income is $9990. $9450. $6660. $6300.
A project with a life of 10 has an initial fixed asset investment of $9,240, an initial NWC investment of $880, and an annual OCF of –$14,080. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 17 percent, what is the project's equivalent annual cost, or EAC?
Acomputer consulti 9 firm presently has bids out on thr ded project ), for , = 1, 2 3, and suppose that p A1-0.22, p Az) = 0.25, PlAg = 0.26, P A nA2-0.11, P A1 n A3 = 0.00 A(Az nAg -0.09, PiA1 probabilities given above to compute the rollowing probabilities, and-xplain in words the meaning of each one.くRound your answers to tour decimal places.) ee projects. LetA- (awar A2 nAg = 0 01. Use the Explain this probability...
(All answers were generated using 1,000 trials and native Excel functionality.) A project has four activities (A, B, C, and D) that must be performed sequentially. The probability distributions for the time required to complete each of the activities are as follows: Activity Activity Time (weeks) Probability A 5 0.25 6 0.35 7 0.25 8 0.15 B 3 0.20 5 0.55 7 0.25 C 10 0.10 12 0.25 14 0.40 16 0.20 18 0.05 D 8 0.60 10 0.40 (a)...