Question

A project has a life of 10 years and no salvage value. Your firm uses an MARR of 8% to evaluate projects


A project has a life of 10 years and no salvage value. Your firm uses an MARR of 8% to evaluate projects. The project has uncertain costs and revenue as shown in the table below:

image.png

Determine the expected value of the EUAW for the project. Express your answer in $ to the nearest $100.

1 0
Add a comment Improve this question Transcribed image text
Know the answer?
Add Answer to:
A project has a life of 10 years and no salvage value. Your firm uses an MARR of 8% to evaluate projects
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • A project has a life of 10 years and no salvage value. Your firm uses an...

    A project has a life of 10 years and no salvage value. Your firm uses an MARR of 8% to evaluate projects. The project has uncertain costs and revenue as shown in the table below: Net Revenue $32,000 0.15 $43,000 0.55 $53,0000.30 Probability Initial Cost Probability $130,000 0.25 240,000 0.60 $340,000 0.15 Determine the expected value of the EUAW for the project. Express your answer in $ to the nearest $100.

  • A project has a life of 10 years and no salvage value

    A project has a life of 10 years and no salvage value. Your firm uses an MARR of 8% to evaluate projects. The project has uncertain costs and revenue as shown in the table below:Determine the risk for the project expressed as the standard deviation of the expected value of the EUAW. Express your answer in $ to the nearest $100.

  • ​A project has a life of 10 years and no salvage value.

    A project has a life of 10 years and no salvage value. Your firm uses an MARR of 8% to evaluate projects. The project has uncertain costs and revenue as shown in the table below: Determine the risk for the project expressed as the standard deviation of the expected value of the EUAW. Express your answer in $ to the nearest $100.

  • Consider the following projects with life 8 years, Project First cost MARR=8% B C D $800...

    Consider the following projects with life 8 years, Project First cost MARR=8% B C D $800 $600 500 Annual Benefit $120 $97 122 $500 0 Salvage Value $500 The B/C ratio of project B is most nearly less than 1 2.3 1.4 1.5 1.3 No correct answer Next Consider the following projects with life 8 years, Project First cost MARR=8% B C D $800 $600 500 Annual Benefit $120 $97 122 $500 0 Salvage Value $500 The B/C ratio of...

  • 3. A machine is purchased for S70,000. Life is 10 years with a S 10,000 salvage. MARR is 10%, and...

    please show work that is easy to UNDERSTAND 3. A machine is purchased for S70,000. Life is 10 years with a S 10,000 salvage. MARR is 10%, and the tax rate is 50%. Cash operating costs are $4500 per year. Five year MACRS (20, 32, 19.2. 11.52, 11.52,5.76) depreciation will be used. Calculate the annual equivalent revenue requirements for this machine. 3. A machine is purchased for S70,000. Life is 10 years with a S 10,000 salvage. MARR is 10%,...

  • Determine the FW of the following engineering project when the MARR is 17% per year. Is...

    Determine the FW of the following engineering project when the MARR is 17% per year. Is the project acceptable? Investment cost Expected life Market (salvage) value Annual receipts Annual expenses Proposal A $9,500 6 years -$1,100 $7,000 $4,000 A negative market value means that there is a net cost to dispose of an asset. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 17% per year. The FW of the following engineering...

  • Consider the two mutual exclusive projects in the table below. Salvage values represent the net proceeds...

    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....

  • Project X has life 3 years, project Y has life 6 years. In comparing the projects...

    Project X has life 3 years, project Y has life 6 years. In comparing the projects using the present worth method, the value of n (no of service years) that must be used is: 3 6 18 36

  • Date Table 2 (MARR-10%) First cost, S Annual cost, S per year Salvage value, S Life, years -40,00...

    Date Table 2 (MARR-10%) First cost, S Annual cost, S per year Salvage value, S Life, years -40,000 -25,000 20,000 10 -75,000 15,000 7,000 a) Conduct PW analysis b) Conduct AW analysis c) Calculate capitalized cost for N d) Calculate capital recovery for MN Date Table 2 (MARR-10%) First cost, S Annual cost, S per year Salvage value, S Life, years -40,000 -25,000 20,000 10 -75,000 15,000 7,000 a) Conduct PW analysis b) Conduct AW analysis c) Calculate capitalized cost...

  • A project under consideration costs $400,000, has a five-year life and has no salvage value. Depreciation...

    A project under consideration costs $400,000, has a five-year life and has no salvage value. Depreciation is straight-line to zero. The firm has made the following projections related to this project Base Case Upper Lower Bound Bound 2,625 $294 $126 $273,000 Unit Sales Price Per Unit Variable Cost Per Unit Fixed Costs 2,500 $280 $120 $260,000 2,375 $266 $114 $247,000 The required return is 10 percent and the tax rate is 30 percent. No additional investment in net working capital...

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