Question

5 Homework Homework Help Save & Exit Submit You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for manufacturing high-pressure hydrau hoses. The parameters associated with each alternative have been estimated. Which one should be selected on the basis of a present worth comparison at an interest rate of 15% per year? why is yours the correct choice? Iternative rst Cost aintenance cost, per ear alvage Value ife $-35,000 $-9000 $5,000 5 years $-95,000 $-5000 $10,500 5 years The present worth of alternative X is $ and that of alternative Y is $□-□ Alternative Click to select is selected by the company. Prev 1 of 10 Next

0 0
Add a comment Improve this question Transcribed image text
Request Professional Answer

Request Answer!

We need at least 10 more requests to produce the answer.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
5 Homework Homework Help Save & Exit Submit You have been asked to evaluate two alternatives,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
  •    can you solve it by using Excel You have been asked to evaluate two alternatives,...

       can you solve it by using Excel You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for man- ufacturing high-pressure hydraulic hoses. The pa- 5.7 rameters associated with each alternative have been estimated. Which one should be selected on the basis of a present worth comparison at an inter- est rate of 12% per year? Why is yours the correct choice? Y X Alternative -58,000 -45,000 First cost, $ -4,000 -8,000 Maintenance...

  • Please show all the steps you've done to reach the final answer. I am trying to...

    Please show all the steps you've done to reach the final answer. I am trying to learn, so please show your work. Typing your answer is important. You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for manufacturing high-pressure hydraulic hoses. The parameters associated with each alternative have been estimated. Which one should be selected on the basis of a present worth comparison at an interest rate of 13% per year? Why is...

  • You have been asked to compare two alternatives, X and Y. MARR is 8% EOY X...

    You have been asked to compare two alternatives, X and Y. MARR is 8% EOY X Y 0 -4800 -4200 1 2000 2000 2 2500 2250 3 3000 2500 NPV @ 8% 1576.70 1565.40 Which alternative would you recommend if using a Net Present Value measure of worth? Why? b. Which alternative would you recommend if using a Benefit/Cost measure of worth? Why?

  • Two alternatives to incorporate improved techniques to manufacture computer drivers to play HD DVD optical disc...

    Two alternatives to incorporate improved techniques to manufacture computer drivers to play HD DVD optical disc formats have been developed and costed. Compare the alternatives below using capitalized cost and interest rate of 8% per year compounded quarterly. Select the CC of best alternative Alternative x Alternative Y First Cost, $ -240000 -168000 Net income, Sper 5000 9000 quarter Upgrade cost, every 10 - 13000 years Salvage value, $ 30000 5 Life, years 00

  • 3. Two advanced thermal insulating and anti-condensation protection alternatives have been proposed for new Antarctica marine...

    3. Two advanced thermal insulating and anti-condensation protection alternatives have been proposed for new Antarctica marine vessels subicct to the harsh marine environment. One alternative must be selected. Estimated savings from reduced total installation and maintenance costs over conventional insulation are the following: Alternative Installed cost Annual savings Life, years Alpha-B $15,000 $6250 Delta-T $13,000 $4750 8 Which alternative should be recommended based on the present worth method? Use a MARR of 18% and a study period of 8 years....

  • 3. Two advanced thermal insulating and anti-condensation protection alternatives have been proposed for new Antarctica marine...

    3. Two advanced thermal insulating and anti-condensation protection alternatives have been proposed for new Antarctica marine vessels subject to the harsh marine environment. One alternative must be selected. Estimated savings from reduced total installation and maintenance costs over conventional insulation are the following: Alternative Installed cost Annual savings Life, years Delta-T Alpha-B $15,000 $6250 $13,000 $4750 8 8 Which alternative should be recommended based on the present worth method? Use a MARR of 18% and a study period of 8...

  • Perform a present worth (PW)-based evaluation of the two alternatives below using a spreadsheet. The after-tax...

    Perform a present worth (PW)-based evaluation of the two alternatives below using a spreadsheet. The after-tax minimum acceptable rate of return (MARR) is 8% per year, Modified Accelerated Cost Recovery System (MACRS) depreciation applies, and Te = 40%. The (GI-OE) estimate is made for the first 3 years; it is zero in year 4 when each asset is sold. Alternative X Y First Cost, $ -8,000 -13,000 Salvage Value, Year 4, $ 0 2,000 GI-OE, $ per Year 3,500 5,000...

  • As a financial analyst at Macleod International (MI) you have been asked to evaluate two capital...

    As a financial analyst at Macleod International (MI) you have been asked to evaluate two capital investment alternatives submitted by the production department of the firm. Before beginning your analysis, you note that company policy has set the cost of capital at 15 percent for all proposed projects. As a small business, MI pays corporate taxes at the rate of 35 percent. The proposed capital project calls for developing new computer software to facilitate partial automation of production in Mi's...

  • i want a hand written solution if possible. thanks! Two mutually exclusive alternatives are being considered...

    i want a hand written solution if possible. thanks! Two mutually exclusive alternatives are being considered for the environmental protection equipment at a petroleum refinery. One of these alternatives must be selected. a. Which environmental protection equipment alternative should be selected? The firm's MARR is 20% per year. Assume the equipment will be needed indefinitely. Assume repeatability is appropriate for this comparison. b. Assume the study period is shortened to five years. The market value of Alternative B after five...

  • Civil Engineering Economics Question... Exercises 79 alternatives have been proposed for improving the water supply for...

    Civil Engineering Economics Question... Exercises 79 alternatives have been proposed for improving the water supply for a city, but ted. Each option has a lifetime of 8 yr and the MARR set is Six different anly one option can be implemen % All figures are m millions of dollars which alternative should be selected? Caiphal cost Amnuial cost Annual benefit T U 10 5 1 2.5 14 1.4 3 2.3 5 2.5 27 4 17 (a) Solve by present worth...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT