Homework Answers
| Present worth of W-X | |||||||
| Present value of Cost savings annual (20 * Annuity factor i.e. 4.9676) | 99.352 | ||||||
| Present value of salvage value (225 *PVF i.e. 0.4039) | 90.8775 | ||||||
| Total Present value | 190 | ||||||
| Less: Initial Investment | -100 | ||||||
| Net present worth | 90 | ||||||
| Req 2: | |||||||
| Answer is B. Alternative-X | |||||||
| As the net present value of all incremental revenue and cost is positive. | |||||||
| Therefore, the management is earning the amount of additional investment. | |||||||
| Therefore, the company must alternative -X | |||||||
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For the following table, assume a MARR of 12% per year and a useful life for...
For the following table, assume a MARR of 9% per year and a useful life for...
For the following table, assume a MARR of 9% per year and a useful life for each alternative of six years that equals the study period. The rank-order of alternatives from least capital investment to greatest capital investment is Do Nothing AC B. Complete the IRR analysis by selecting the preferred alternative. A C CB Do Nothing A - $3,500 A Capital investment A Annual revenues A Annual costs A Market value -$2,000 -$15,000 4,000 - 1,000 900 450 -150...
NOT IN EXCEL 7.For the following table assume a MARR of 6% per year, and a...
NOT IN EXCEL
7.For the following table assume a MARR of 6% per year, and a useful life for each alternative of six years. Which equals the study period. The rank order of alternatives from least capital to greatest capital investment is A, C, B. Complete the PW-Incremental Analysis by selecting the preferred alternative. (5ptos) V A Capital Investment A Annual Revenues A Annual Cost A Market Value APW A $15,000 4,000 1,000 6,000 $3,982 A(C-A) A(B-C) $2,000 $3,000 900...
Compare alternatives A and B with the present worth method if the MARR is 11% per year. Which one would you recommend? Assume repeatability and a study period of 12 years. $25,000 $10,000 at end of y...
Compare alternatives A and B with the present worth method if the MARR is 11% per year. Which one would you recommend? Assume repeatability and a study period of 12 years. $25,000 $10,000 at end of year 1 and increasing by $1,000 per year thereafter None Capital Investment Operating Costs $55,000 $5,000 at end of year 1 and increasing by $500 per year thereafter $5,000 every 3 years 12 years $10,000 if just overhauled Overhaul Costs Life 6 years negligible...
For the following table, assume a MARR of 9% per year and a useful life for each alternative of six years that equals t...
For the following table, assume a MARR of 9% per year and a useful life for each alternative of six years that equals the study period. The rank-order of alternatives from least capital investment to greatest capital investment is Do Nothing A CB. Complete the IRR analysis by selecting the preferred alternative. Do Nothing A A C CB - $15,000 A Capital investment A Annual revenues A Annual costs - $3,250 - $2,000 4,000 900 460 -1,000 6,000 - 150...
Compare alternatives A and B with the present worth method if the MARR is 10% per year. Which one would you recommend? Assume repeatability and a study period of 20 years $15,000 $45,000 Capital Inve...
Compare alternatives A and B with the present worth method if the MARR is 10% per year. Which one would you recommend? Assume repeatability and a study period of 20 years $15,000 $45,000 Capital Investment Operating Costs $4,000 at end of year 1 and increasing by $400 per year thereafter $4,000 every 5 years 20 years $8,000 at end of year 1 and increasing by $800 per year thereafter None Overhaul Costs Life 10 years Salvage Value $8,000 if just...
Most likely estimates for a project are as follows. MARR Useful life Initial investment Receipts -...
Most likely estimates for a project are as follows. MARR Useful life Initial investment Receipts - Expenses (R-E 12% per year 6 years $7,000 $1,300/year Determine whether the statement "If the profit (R-E) is decreased by 6%, this project is not profitable." is true or false, Click the icon to view the relationship between the PW and the percent change in parameter. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12%...
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
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 12% per year. Capital Investment Annual expenses Useful life Market value at end of useful life Lead Acid $8,000 $2,250 12 years $0 Lithium lon $13,000 $2,300 18 years $2,800 Click the icon to view the interest and annuity table for discrete compounding when /= 12% per year. (a) Determine which altemative should be selected based on the PW method. Assume repeatabllity...
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...
Use the imputed market value technique to determine the better alternative below. The MARR is 12%...
Use the imputed market value technique to determine the better alternative below. The MARR is 12% per year and the study period is four years. Capital Investment, millions Annual Expenses, millions Useful Life, years Market Value (End of useful life) Alternative J 41 10 4 0 Alternative K 56 20 9 o Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year. The present worth of Alternative J over four...
For the following table, assume a MARR of 9% per year and a useful life for each alternative of six years that equals the study period. The rank-order of alternatives from least capital investment to greatest capital investment is Do Nothing AC B. Complete the IRR analysis by selecting the preferred alternative. A C CB Do Nothing A - $3,500 A Capital investment A Annual revenues A Annual costs A Market value -$2,000 -$15,000 4,000 - 1,000 900 450 -150...
NOT IN EXCEL
7.For the following table assume a MARR of 6% per year, and a useful life for each alternative of six years. Which equals the study period. The rank order of alternatives from least capital to greatest capital investment is A, C, B. Complete the PW-Incremental Analysis by selecting the preferred alternative. (5ptos) V A Capital Investment A Annual Revenues A Annual Cost A Market Value APW A $15,000 4,000 1,000 6,000 $3,982 A(C-A) A(B-C) $2,000 $3,000 900...
Compare alternatives A and B with the present worth method if the MARR is 11% per year. Which one would you recommend? Assume repeatability and a study period of 12 years. $25,000 $10,000 at end of year 1 and increasing by $1,000 per year thereafter None Capital Investment Operating Costs $55,000 $5,000 at end of year 1 and increasing by $500 per year thereafter $5,000 every 3 years 12 years $10,000 if just overhauled Overhaul Costs Life 6 years negligible...
For the following table, assume a MARR of 9% per year and a useful life for each alternative of six years that equals the study period. The rank-order of alternatives from least capital investment to greatest capital investment is Do Nothing A CB. Complete the IRR analysis by selecting the preferred alternative. Do Nothing A A C CB - $15,000 A Capital investment A Annual revenues A Annual costs - $3,250 - $2,000 4,000 900 460 -1,000 6,000 - 150...
Compare alternatives A and B with the present worth method if the MARR is 10% per year. Which one would you recommend? Assume repeatability and a study period of 20 years $15,000 $45,000 Capital Investment Operating Costs $4,000 at end of year 1 and increasing by $400 per year thereafter $4,000 every 5 years 20 years $8,000 at end of year 1 and increasing by $800 per year thereafter None Overhaul Costs Life 10 years Salvage Value $8,000 if just...
Most likely estimates for a project are as follows. MARR Useful life Initial investment Receipts - Expenses (R-E 12% per year 6 years $7,000 $1,300/year Determine whether the statement "If the profit (R-E) is decreased by 6%, this project is not profitable." is true or false, Click the icon to view the relationship between the PW and the percent change in parameter. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12%...
Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The MARR is 12% per year. Capital Investment Annual expenses Useful life Market value at end of useful life Lead Acid $8,000 $2,250 12 years $0 Lithium lon $13,000 $2,300 18 years $2,800 Click the icon to view the interest and annuity table for discrete compounding when /= 12% per year. (a) Determine which altemative should be selected based on the PW method. Assume repeatabllity...
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...
Use the imputed market value technique to determine the better alternative below. The MARR is 12% per year and the study period is four years. Capital Investment, millions Annual Expenses, millions Useful Life, years Market Value (End of useful life) Alternative J 41 10 4 0 Alternative K 56 20 9 o Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year. The present worth of Alternative J over four...
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