Homework Answers
Venture A:
Present worth = 1650/15% - 10,000 = 1,000
Venture B: = 2500/15% - 15,000 = 1,666.67
Task: C = 1300/25% - 9,000 = - 3,800
Answers:
a
Undertakings An and B are chosen as they have positive present worth
b
Just task B is chosen as it has most elevated present worth.
PLZ LIKE MY ANS
Add Answer to:
Problem 1. Three alternative projects with infinite lives are under consideration. Initial costs and cash flows...
Question 2 (1 point) A tabulation of incremental cash flow between two different-life alternatives must be...
Question 2 (1 point) A tabulation of incremental cash flow between two different-life alternatives must be prepared over the LCM of their lives. True False Question 3 (1 point) In evaluating mutually exclusive alternatives on the basis of rate of return, it is necessary to conduct an "Incremental ROR"in order to obtain the same ranking as the PW and AW methods True False Question 7 (1 point) When an incremental rate of return analysis is conducted correctly, the alternative identified...
Question 9 (4 points) When the cash flow of the shemative with the lower In v...
Question 9 (4 points) When the cash flow of the shemative with the lower In v estment is subtracted from that with the ligherita Investment, a rate of return on the Incremental cash flow that equals or exceeds the MARR means the lower Initi Investment alternative is the more attractive True False Question 10 (4 points) In the incremental ROR analysis for multiple mutually exclusive Nternatives. If the Increme ROR is equal or exceed the MARR, the Challenger selected and...
Problems 4 The cash flows for three mutually exclusive alternatives are given in table below use...
Problems 4 The cash flows for three mutually exclusive alternatives are given in table below use MARR = 4% Initial cost Annual benefits RoR Life in years Alt. A $11,000 $3.500 15% Alt. B $23,000 $6,500 13% Alt. C $20,000 $5,500 11% Which alternative should be selected based on a Payback period and () Net Future Worth analyses
Three mutually exclusive design alternatives are being considered. The estimated cash flows for each alternative are...
Three mutually exclusive design alternatives are being considered. The estimated cash flows for each alternative are given next. The MARR is 20% per year. At the conclusion of the useful life, the investment will be sold. B Investment cost Annual expenses Annual revenues Market value Useful life $28,000 $15,000 $23,000 $6,000 10 years 10 years 10 years 26.4% $55,000 $40,000 $22,000 $32,000 $10,000 $13,000 $28,000 $8,000 24.7% 22.4% IRR A decision-maker can select one of these alternatives or decide to...
The cash flows for three different alternatives are given below. Assume that alternatives are replaced at...
The cash flows for three different alternatives are given below. Assume that alternatives are replaced at the end of their useful lives. The MARR is 8%. Data P Q R Initial cost $5000 $1000 $2500 Benefits per year $650 0 $350 Salvage value $5000 $1760 $2500 Life 20 years 5 years 10 years The incremental ROR between alternatives “Q” and “R” is? withouut using excal
Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The...
Consider the following EOY cash flows for two mutually
exclusive alternatives (one must be chosen). The MARR is 5% per
year.
I need the PW of the Lead Acid and Lithium Ion.
Problem 6-28 (algorithmic) EQuestion Help Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen) The MARR is 5% per year ead Acid $7,000 thium lon Capital investment Annual expenses Useful life Market value at end of useful life $13,000 $2.500 $2,750 12...
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
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 Questions 4 through 7 are based on the following statement: 1 tually exclusive alternatives, A...
5 Questions 4 through 7 are based on the following statement: 1 tually exclusive alternatives, A and B, are to be evaluated by the rate of return (ROR) method. The initial Investment for alternative B is greater than that of alternative A. If the overall ROR of alternative A is less than the MARR and the overall rate of return of alternative B is greater than the MARR, then: A) Alternative B should be compared incrementally to alternative A. B)...
QUESTION 23 Two alternatives have the following cash flows: Alternative Year A B 0 -$10000 -$15000...
QUESTION 23 Two alternatives have the following cash flows: Alternative Year A B 0 -$10000 -$15000 1 +$3000 +$4400 2 +$3000 +$4400 3 +$3000 +$4400 4 +$3000 +$4400 Assuming a 5% MARR, use incremental analysis to determine which alternative should be selected?
Given the net cash flows for the mutually exclusive projects A and B shown in the table below and a MARR of 12%. n Pr...
Given the net cash flows for the mutually exclusive projects A and B shown in the table below and a MARR of 12%. n Project A Project B 0 -$25000 -$25000 1 $2000 $10000 2 $6000 $10000 3 $12000 $10000 4 $24000 $10000 5 $28000 $10000 NPW AE a) Solve for the NPW and AE for each project and fill in the respective boxes. b) Which project would you select?
Question 2 (1 point) A tabulation of incremental cash flow between two different-life alternatives must be prepared over the LCM of their lives. True False Question 3 (1 point) In evaluating mutually exclusive alternatives on the basis of rate of return, it is necessary to conduct an "Incremental ROR"in order to obtain the same ranking as the PW and AW methods True False Question 7 (1 point) When an incremental rate of return analysis is conducted correctly, the alternative identified...
Question 9 (4 points) When the cash flow of the shemative with the lower In v estment is subtracted from that with the ligherita Investment, a rate of return on the Incremental cash flow that equals or exceeds the MARR means the lower Initi Investment alternative is the more attractive True False Question 10 (4 points) In the incremental ROR analysis for multiple mutually exclusive Nternatives. If the Increme ROR is equal or exceed the MARR, the Challenger selected and...
Problems 4 The cash flows for three mutually exclusive alternatives are given in table below use MARR = 4% Initial cost Annual benefits RoR Life in years Alt. A $11,000 $3.500 15% Alt. B $23,000 $6,500 13% Alt. C $20,000 $5,500 11% Which alternative should be selected based on a Payback period and () Net Future Worth analyses
Three mutually exclusive design alternatives are being considered. The estimated cash flows for each alternative are given next. The MARR is 20% per year. At the conclusion of the useful life, the investment will be sold. B Investment cost Annual expenses Annual revenues Market value Useful life $28,000 $15,000 $23,000 $6,000 10 years 10 years 10 years 26.4% $55,000 $40,000 $22,000 $32,000 $10,000 $13,000 $28,000 $8,000 24.7% 22.4% IRR A decision-maker can select one of these alternatives or decide to...
Consider the following EOY cash flows for two mutually
exclusive alternatives (one must be chosen). The MARR is 5% per
year.
I need the PW of the Lead Acid and Lithium Ion.
Problem 6-28 (algorithmic) EQuestion Help Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen) The MARR is 5% per year ead Acid $7,000 thium lon Capital investment Annual expenses Useful life Market value at end of useful life $13,000 $2.500 $2,750 12...
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 Questions 4 through 7 are based on the following statement: 1 tually exclusive alternatives, A and B, are to be evaluated by the rate of return (ROR) method. The initial Investment for alternative B is greater than that of alternative A. If the overall ROR of alternative A is less than the MARR and the overall rate of return of alternative B is greater than the MARR, then: A) Alternative B should be compared incrementally to alternative A. B)...
Most questions answered within 3 hours.
-
A 1400Kg sports car accelerates from rest to 90km/h in 7.0s.
What is the average power...
asked 29 minutes ago -
For the following reaction, 0.128 moles of
potassium hydrogen sulfateare mixed with
0.504 moles of potassium...
asked 4 hours ago -
1. What is the present value of $400, three years in the future
if the interest...
asked 4 hours ago -
The labor force minus the number of employed equals the number
of unemployed.
a. True
b....
asked 6 hours ago -
Determine the mass in units of grams [g] of 0.49 moles [mol]
of a new fictitious...
asked 7 hours ago -
A horizontal mass of M=5kg is on a spring and stretched to
x=0.5m when released from...
asked 8 hours ago -
26 of 50
"I have worked at the Arizona Humane Society for ten years, and
have...
asked 8 hours ago -
Compare and contrast zero based budgeting and incremental (or
base year) budgeting.
asked 8 hours ago -
4 pts 10. Which of the following hypothesis would be MOST
difficult to test experimentally? Group...
asked 8 hours ago -
A business owner makes 1,000 items a day. Each day he or she
contributes eight hours...
asked 8 hours ago -
A
circular loop in the plane of a paper lies inca0.65 T magnetic
field pointing into...
asked 9 hours ago -
A business owner is trying to decide whether to buy, rent, or
lease office space and...
asked 9 hours ago