Homework Answers
Alt Y has higher PWC, so we do (Y - Z) incremental analysis.
Incremental PWC = 460 - 250 = 210
Incremental annual benefit = 50 - 28 = 22
Incremental Benefit-cost ratio = PW of Incremental annual benefit / Incremental PWC
= [22 x P/A(3%, 12)] / 210
= (22 x 9.954) / 210
= 1.04
Since Incremental Benefit-cost ratio > 1, Alternative Y is preferable.
Add Answer to:
3. Consider two mutually exclusive alternative investments. The analysis period is 12 years and the MARR...
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...
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
Consider 3 mutually exclusive alternatives, each with a 10-year useful life. If the MARR (Minimum acceptable...
Consider 3 mutually exclusive alternatives, each with a 10-year useful life. If the MARR (Minimum acceptable rate of return) is 14.5%, which alternative should be selected? Solve the problem using benefit-cost ratio analysis. Alternative Choice Choice Choice #1 #2 #3 Cost 810 131 305 62 145 36 Uniform Annual benefit
Problem (2): Consider the following three mutually exclusive alternatives. MARR is 10%. Alternative 1 10,000 Alternative...
Problem (2): Consider the following three mutually exclusive alternatives. MARR is 10%. Alternative 1 10,000 Alternative 2 14,500 Alternative 3 20,000 $3,000 increasing by 500 each year thereafter negligible $5,000 Initial investment Annual yielded returns Salvage Value Service life $5,000 $5,000 negligible 6 a) Compute the payback (PB) period and discounted PB period of each alternative. Based on the PB period, which alternative do you recommend? b) Using Annual-worth analysis, which alternative do you recommend?
The following four mutually exclusive alternatives have no salvage value after 10 years. Consider a MARR...
The following four mutually exclusive alternatives have no salvage value after 10 years. Consider a MARR of 16%. a. Determine the Benefit cost ratio for each option, and the incremental analysis to determine which option should be selected b. Determine the payback period for each option and determine which option should be selected A B С D 8000 6500 6000 9500 Option Initial cost Yearly Benefit $1,195.5 $1,717.2 5 $1,446.3 5 $1,821.2 8 1
2) [Problem 9-50) Consider four mutually exclusive alternatives: A B C D Cost $65 $55 $25...
2) [Problem 9-50) Consider four mutually exclusive alternatives: A B C D Cost $65 $55 $25 $80 Uniform annual benefit 16.3 15.1 2 5. 2 1.3 AL Each alternative has a 6-yeatuseful life and no salvage value. The MARR is 9%. Which alternative should be selected, based on, ? a) The payback period b) Future worth analysis c) Benefit-cost ratio analysis
Consider the mutually exclusive alternatives given in the table below. MARR is 8 % per year....
Consider the mutually exclusive alternatives given in the table below. MARR is 8 % per year. Assuming repeatability, what is the equivalent annual worth of the most profitable alternative? (Do not enter the dollar sign $ with your answer.) _____________________________________________________________ X Y Z _____________________________________________________________ Capital investment $80,000 $40,000 $64,000 Annual savings $24,000 $12,800 $19,200 Useful life (years) 8 12 16
please show excel formulas so I can understand the problem THANKS 9-50 Consider four mutually exclusive...
please show excel formulas so I can understand the problem
THANKS
9-50 Consider four mutually exclusive alternatives: (Α) A B C D Cost $75.0 $50.0 $15.0 $90.0 Uniform annual 18.8 13.9 4.5 23.8 benefit Each alternative has a 5-year useful life and no sal- vage value. The MARR is 10%. Which alternative should be selected, based on (a) The payback period (b) Future worth analysis (c) Benefit-cost ratio analysis
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...
8 pts Question 11 Consider the following two mutually exclusive alternatives: $ 20,000 Uniform amul benefit...
8 pts Question 11 Consider the following two mutually exclusive alternatives: $ 20,000 Uniform amul benefit Useful life in years Alternative B may be replaced with an identical item every 20 years at the same $28,000 cost and will have the same $2.750 uniform annual benefit. Ata 7% interest rate, use the annual cash flow analysis method to find which alternative should be selected. ཀྱིས 12pt Paragraph Consider the following two mutually exclusive alternatives: $ 20,000 2.000 $28.000 2.750 Uniform...
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...
Consider 3 mutually exclusive alternatives, each with a 10-year useful life. If the MARR (Minimum acceptable rate of return) is 14.5%, which alternative should be selected? Solve the problem using benefit-cost ratio analysis. Alternative Choice Choice Choice #1 #2 #3 Cost 810 131 305 62 145 36 Uniform Annual benefit
Problem (2): Consider the following three mutually exclusive alternatives. MARR is 10%. Alternative 1 10,000 Alternative 2 14,500 Alternative 3 20,000 $3,000 increasing by 500 each year thereafter negligible $5,000 Initial investment Annual yielded returns Salvage Value Service life $5,000 $5,000 negligible 6 a) Compute the payback (PB) period and discounted PB period of each alternative. Based on the PB period, which alternative do you recommend? b) Using Annual-worth analysis, which alternative do you recommend?
The following four mutually exclusive alternatives have no salvage value after 10 years. Consider a MARR of 16%. a. Determine the Benefit cost ratio for each option, and the incremental analysis to determine which option should be selected b. Determine the payback period for each option and determine which option should be selected A B С D 8000 6500 6000 9500 Option Initial cost Yearly Benefit $1,195.5 $1,717.2 5 $1,446.3 5 $1,821.2 8 1
2) [Problem 9-50) Consider four mutually exclusive alternatives: A B C D Cost $65 $55 $25 $80 Uniform annual benefit 16.3 15.1 2 5. 2 1.3 AL Each alternative has a 6-yeatuseful life and no salvage value. The MARR is 9%. Which alternative should be selected, based on, ? a) The payback period b) Future worth analysis c) Benefit-cost ratio analysis
please show excel formulas so I can understand the problem
THANKS
9-50 Consider four mutually exclusive alternatives: (Α) A B C D Cost $75.0 $50.0 $15.0 $90.0 Uniform annual 18.8 13.9 4.5 23.8 benefit Each alternative has a 5-year useful life and no sal- vage value. The MARR is 10%. Which alternative should be selected, based on (a) The payback period (b) Future worth analysis (c) Benefit-cost ratio analysis
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...
8 pts Question 11 Consider the following two mutually exclusive alternatives: $ 20,000 Uniform amul benefit Useful life in years Alternative B may be replaced with an identical item every 20 years at the same $28,000 cost and will have the same $2.750 uniform annual benefit. Ata 7% interest rate, use the annual cash flow analysis method to find which alternative should be selected. ཀྱིས 12pt Paragraph Consider the following two mutually exclusive alternatives: $ 20,000 2.000 $28.000 2.750 Uniform...
Most questions answered within 3 hours.
-
Create a class called Hotel. The hotel class will track the
current reservations for your one-room...
asked 13 minutes ago -
In space, a 4.0 kg metal ball moving 30 m/s has a head on
collision with...
asked 22 minutes ago -
Financial Markets and Corporate Strategy (assignment template) –
1 of 2
Insights/Instructions: Use this template to...
asked 20 minutes ago -
A firm has announced a cash dividend of $3 dollar per share.
Assuming an efficient market,...
asked 16 minutes ago -
Which of the following statements is consistent with the fact
that capital in an economy is...
asked 30 minutes ago -
Would you hire a white hat hacker or black hat hacker? What are
the pros and...
asked 34 minutes ago -
The CFO is conducting a meeting and she says "we shouldn't
accept this project because we...
asked 37 minutes ago -
How do you obtain the discount rate for an international capital
budgeting problem?
asked 34 minutes ago -
Hi, please read the entire problem.
I need help with the BusOrder class and test for...
asked 35 minutes ago -
Hello, regarding the photoelectric effect I had a couple
questions:
Red light is shining on a...
asked 51 minutes ago -
build a sample navigation Sprite in css ?
asked 50 minutes ago -
Please write a C# program for an concert sale with the
requirements below in Console Form:...
asked 53 minutes ago