Here we have to determine the present worth of the two projects for a time period of 15 years. The present worth of the project B1 can be determined using the following equation
On solving the above equation we get
PWB1 = - $ 57,785.48
Present worth of project B1 = - $ 57.8 thousand.
Now calculating the present worth of B2
On solving the above equation we get
Present worth of Project B2 = - $ 45.9 thousand.
Using the present worth of the two projects the present worth of B2 is less hence select Project B2.
Consider the two mutually exclusive projects in the table below. Salvage values represent the not proceeds...
Consider the two mutually exclusive projects in the table below. Salvage values represent the net proceeds (after tax) from disposal of the assets if they are sold at the end of each year. Both projects B1 and B2 will be available (or can be repeated) with the same costs and salvage values for an indefinite period. Click the icon to view the additional data about the mutually exclusive projects. Click the icon to view the interest factors for discrete compounding...
Consider the two mutually exclusive projects in the table below. Salvage values represent the net proceeds (after tax) from disposal of the assets if they are sold at the end of each year. Both projects B1 and B2 will be available (or can be repeated) with the same costs and salvage values for an indefinite period. B Click the icon to view the additional data about the mutually exclusive projects. Click the icon to view the interest factors for discrete...
Consider the two mutual exclusive projects in the table below. Salvage values represent the net proceeds (after tax) from disposal of the assets if they are sold at the sold at the end of each year. Both Projects B1 and B2 will be available (or can be tepeated) with the same costs and salvage values for an indefinite period. A.) Assuming an infinite planning horizon, which project is better choice at MARR=11%? Use 15 years as tge common analysis period....
Problem 5-49 (algorithmic) Question Help Consider the two mutually exclusive projects in the table below. Salvage values represent the net proceeds (after tax) from disposal of the assets if they are sold at the end of each year. Both projects B1 and B2 will be available (or can be repeated) with the same costs and salvage values for an indefinite period. Click the icon to view the additional data about the mutually exclusive projects. Click the icon to view the...
Consider the two mutually exclusive projects in the table below. Salvage values represent the net proceeds (after tax) from disposal of the assets if they are sold at the end of each year. Both projects B1 and B2 will be available (or can be repeated) with the same costs and salvage values for an indefinite period . Assuming an infinite planning horizon, which project is a better choice at MARR = 11%? Use 15 years as the common analysis period....
(a) Assuming an infinite planning horizon, which project is a better choice at MARR = 12%\ The present worth for project B1 is $ thousand The present worth for project B2 is $ thousand (b) With a 10 year planning horizon, which project is a better choice at MARR = 12% Consider the two mutually exclusive projects in the table below. Salvage values represent the net proceeds (after tax) from disposal of the assets if they are sold at the...
Can someone help me with part b? I can not seem to find the correct answer for present worth of B1 with 10 year planning horizon or the present worth of B2 with 10 year planning horizon. Consider the two mutually exclusive projects in the table below. Salvage values represent the net proceeds (after tax) from disposal of the assets if they are sold at the end of each year. Both projects B1 and B2 will be available (or can...
Consider the two mutually exclusive investment projects given in the table below for which MARR = 19%. On the basis of the IRR criterion, which project would be selected under an infinite planning horizon with project repeatability likely? Click the icon to view the cash flows for the investment projects. The rate of return on the incremental investment is %. (Round to one decimal place.) Which project would be selected on the basis of the IRR criterion? Choose the correct...
Consider the two mutually exclusive investment projects given in the table below for which MARR = 16%. On the basis of the IRR criterion, which project would be selected under an infinite planning horizon with project repeatability likely? Click the icon to view the cash flows for the investment projects. The rate of return on the incremental investment is % (Round to one decimal place.) n 0 Net Cash Flow Project A -- $4,000 1,500 2,500 2,500 26.23% Project B...
Consider the two mutually exclusive investment projects given in the table below for which MARR=11%. On the basis of the IRR criterion, which project would be selected under an infinite planning horizon with project repeatability likely? The rate of return on the incremental investment is ?% Homework: HW #7 Save Score: 0 of 1 pt 10 of 10 (8 complete) HW Score: 78.33%, 7.83 of 10 pts Problem 7-56 (algorithmic) Question Help Consider the two mutually exclusive investment projects given...