Homework Answers
Answer-
We will evaluate all the four alternatives with the given rate of MARR = 8 %
Alternative 1
$ 1200 at the end of year 2
NPV = $ 1200 / 1.082 ( Discounting $ 1200 for present
value $ 1200 / ( 1 + MARR)2 )
NPV = $ 1028.81
Alternative 2
Annual benefit of $ 300 for 4 years
NPV = $ 300 / 1.08 + 300 / 1.082 + $ 300 /
1.083 + $ 300 / 1.084
NPV = $ 277.77 + $ 257.2 + $ 238.15 + $ 220.51
NPV = $ 993.63
Alternative 3
$ 1300 at the end of year 4
NPV = $ 1300 / 1.084
NPV = $ 955.54
Alternative 4
An annual benefit of $ 390 for three years
NPV = $ 390 / 1.08 + $ 390 / 1.082 + $ 390 /
1.083
NPV = $ 361.11 + $ 334.36 + $ 309.59
NPV = $ 1003.06
Since the first alternative has the highest NPV therefore it should be selected ie. $ 1200 at the end of year 2
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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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Quiz 7 Consider three alternatives, each with a 10-year useful life. If the MARR is 10%, which al...
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Quiz 7 Consider three alternatives, each with a 10-year useful life. If the MARR is 10%, which alternative should be selected? Solve the problem by benefit-cost ratio analysis. $800 Cost (in millions) Annual benefit...
9-54 Three mutually exclusive alternatives are beine A considered: $500 $400 $300 200 100 Initial...
9-54 Three mutually exclusive alternatives are beine A considered: $500 $400 $300 200 100 Initial cost Benefit at end of the first 200 200 year Uniform benefit at end of 100 125 subsequent years Useful life, in years 4 At the end of its useful life, an alternative is not replaced. If the MARR is 10%, which alternative should be selected (a) Based on the payback period? (b) Based on benefit-cost ratio analysis?
9-54 Three mutually exclusive alternatives are beine...
Consider three mutually exclusive alternatives, each with a 15-year useful life. If the MARR is 12%,...
Consider three mutually exclusive alternatives, each with a 15-year useful life. If the MARR is 12%, which alternative should be selected? Solve the problem by using benefit-cost ratio analysis, Net Present Value, and Internal Rate of Return. A B C Cost $800 $300 $150 Uniform Annual Benefit 130 60 35
please show all work in details Consider the following three alternatives $800 $300 $150 Cost Uniform annual 142 60 33.5 benefit Each has a 10-yr life and the MARR is 10%, which alternative should...
please show all work in details
Consider the following three alternatives $800 $300 $150 Cost Uniform annual 142 60 33.5 benefit Each has a 10-yr life and the MARR is 10%, which alternative should be selected if one uses: a) The Pay-back period methood b) The benefit-cost ration analysis
Consider the following three alternatives $800 $300 $150 Cost Uniform annual 142 60 33.5 benefit Each has a 10-yr life and the MARR is 10%, which alternative should be selected if...
8-14 A The following four mutually exclusive alternatives have no salvage value after 10 years. First...
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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...
Which alternative of the three alternatives below should be selected if the MARR = 6%? Use...
Which alternative of the three alternatives below should be
selected if the MARR = 6%? Use the following to compare
projects
a.PW analysis
b.B/C ratio for each project
c.Incremental B/C ratio assessment (Be sure to define Defender
and Challenger in each incremental analysis)
d.IRR for each project over its respective service life
e.Incremental IRR using the same (a common) number of years for
each project
Are any of the projects acceptable? Are any not acceptable? Which project would you recommend...
9- Two alternatives with identical benefits are being considered: 49 A B Initial cost $500 $800...
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Three mutually exclusive alternatives are being considered: Initial cost Benefit at end of the first $500...
Three mutually exclusive alternatives are being considered: Initial cost Benefit at end of the first $500 $400 $300 200 200 200 year Uniform benefit at end of 100 125 100 subsequent years Useful life, in years 4 At the end of its useful life, an alternative is not replaced. If the MARR is 10%, which alternative should be selected (a) Based on the payback period? (b) Based on benefit-cost ratio analysis?
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...
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Quiz 7 Consider three alternatives, each with a 10-year useful life. If the MARR is 10%, which alternative should be selected? Solve the problem by benefit-cost ratio analysis. $800 Cost (in millions) Annual benefit...
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please show all work in details
Consider the following three alternatives $800 $300 $150 Cost Uniform annual 142 60 33.5 benefit Each has a 10-yr life and the MARR is 10%, which alternative should be selected if one uses: a) The Pay-back period methood b) The benefit-cost ration analysis
Consider the following three alternatives $800 $300 $150 Cost Uniform annual 142 60 33.5 benefit Each has a 10-yr life and the MARR is 10%, which alternative should be selected if...
8-14 A The following four mutually exclusive alternatives have no salvage value after 10 years. First cost Uniform annual benefit Computed rate of return $7500 $5000 $5000 $8500 1600 1200 1000 1700 16.8% 20.2% 15.1% 15.1% (a) Construct a choice table for interest rates from 0% to 100%. (b) Using 8% for the MARR, which alternative should be selected?
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...
Which alternative of the three alternatives below should be
selected if the MARR = 6%? Use the following to compare
projects
a.PW analysis
b.B/C ratio for each project
c.Incremental B/C ratio assessment (Be sure to define Defender
and Challenger in each incremental analysis)
d.IRR for each project over its respective service life
e.Incremental IRR using the same (a common) number of years for
each project
Are any of the projects acceptable? Are any not acceptable? Which project would you recommend...
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
Three mutually exclusive alternatives are being considered: Initial cost Benefit at end of the first $500 $400 $300 200 200 200 year Uniform benefit at end of 100 125 100 subsequent years Useful life, in years 4 At the end of its useful life, an alternative is not replaced. If the MARR is 10%, which alternative should be selected (a) Based on the payback period? (b) Based on benefit-cost ratio analysis?
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