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Using Rate of Return Analysis, determine the most economical alternative below. Assume a minimum ...
Using Rate of Return Analysis, determine the most economical alternative below. Assume a minimum attractive rate...
Using Rate of Return Analysis, determine the most economical alternative below. Assume a minimum attractive rate of retum of 696, and a 6-year life with no salvage value for each. The alternatives are mutually exclusive. Initial cost Annual Cost Annual Benefit IRR.% $3000,000 10000 120,300 18 $100,000 25000 40800 $500,000 12000 9000 150200 55200 12 45
6. Given the data in the table below for two mutually exclusive alternatives, determine the value "x" for the two a...
6. Given the data in the table below for two mutually exclusive alternatives, determine the value "x" for the two alternatives to be equally attractive. Use an interest rate of 8% per year. 20 Initial cost $275 $650 Uniform annual benefit $120 $(x) Salvage value 10% initial cost 20% of initial cost Ufe 6 years
13. Using benefit-cost ratio analysis, b 5 year useful life, and a 15% MARR, determine which...
13. Using benefit-cost ratio analysis, b 5 year useful life, and a 15% MARR, determine which of the following mutually exclusive alternatives should be selected. D 310 380 470 Cost Annual Benefit Salvage/Value Ule OS 8 90
The four alternatives described below are evaluated by the rate of return method. Alternative Initial Investment, $ Ove...
The four alternatives described below are evaluated by the rate of return method. Alternative Initial Investment, $ Overall ROR, i*% Δi*% When Compared with Alternative A B C A −40,000 29 - - - B −75,000 15 1 - - C −100,000 16 7 20 - D −200,000 14 10 13 12 If the proposals are mutually exclusive, which one should be selected at an MARR of 9% per year? Alternative should be selected.
solve in word format Answer the question. onsider the three mutually exclusive alternatives below. Determine which...
solve in word format
Answer the question. onsider the three mutually exclusive alternatives below. Determine which alternative is preferable at an terest rate of 10% per year. Assume all of these projects are repeating perpetually. Alternative A B C Capital investment $400,000 $100,000 $150,000 Annual expense $189,000 $94,500 $134,000 $309,000 $204,500 $300,000 $50,000 $100,000 Annual revenue Salvage value Life, years $65,000 24 36 12 X E B I i Fr
1. Given the costs and benefits of two water pumps, what is the rate of return on the difference ...
1. Given the costs and benefits of two water pumps, what is the rate of return on the difference of these alternatives? Year -$3000 +800 +800 +800 +800 +800 -$3800 +1200 +1200 +1200 +1200 +1200 What is your choice of these 2 alternatives and why? 2. The manager of a local restaurant is trying to decide whether to buy a charcoal broiling unit or an electric grill for cooking hamburgers. A market study shows customers prefer charcoal broiling but the...
1. An economic analysis is used to determine the profitability of a machine. Assume the minimum...
1. An economic analysis is used to determine the profitability of a machine. Assume the minimum attractive rate of return (interest rate) is 3%. What is the present worth of this investment alternative? Initial cost = $11,000 Estimated life = 7 years Salvage value = 3,800 Annual maintenance cost = 475 Annual income = 1,800 Income gradient = 120 a.PW = $3,500 b.PW = $2,450 c.PW = $2,500 d.PW = $2,350
please solve in word format Answer the question. Consider the three mutually exclusive alternatives below. Determine...
please solve in word format
Answer the question. Consider the three mutually exclusive alternatives below. Determine which alternative is preferable at an interest rate of 10% per year. Assume all of these projects are repeating perpetually, Alternative A B C Capital investment $400,000 $100,000 $150,000 Annual expense $189,000 $94,500 $134,000 Annual revenue $309,000 $204,500 $300,000 Salvage value $65,000 $50,000 $100,000 Life, years | 24 36 12 1 i FBI , O EE % 5 % Solution: AW(M) - -400,000 (A/P,...
uestion 3 Using PW Analysis, for mutually exclusive projects, more than one project can be selected O True O False stion 7 Compare the machines shown below on the basis of their capitalized cost...
uestion 3 Using PW Analysis, for mutually exclusive projects, more than one project can be selected O True O False stion 7 Compare the machines shown below on the basis of their capitalized cost. Use i-10% per year Machine 1 20,000 9000 4000 Machine 2 First cost,S Annual cost,/year Salvage value, $ Life, years -100,000 -7000 Infinite A.-20000(A/P 1096.3)-9000+4000WF,1096,3) B. $-15832.40 C. $-170,000 D. 1 E. $-180,000 F. 2 G. S-166,540 Equation for AW1- Answer 2 decimals) + Selection-
uestion...
2. [Problem 7-63] If 8% is considered the minimum attractive rate of return, which alternative should...
2. [Problem 7-63] If 8% is considered the minimum attractive rate of return, which alternative should be selected using an incremental analysis? Year -$5000 -3000 4000 4000 4000 -$5000 2000 2000 2000 2000 3. [Problem 8-5] A stockbroker has proposed two investments in low-rated corporate bonds paying high interest rates and selling at steep discounts (junk bond). The bonds are rated as equally risky and both mature in 15 years. Bond Stated Value Annual Interest Payment $67 Current Market Price...
Using Rate of Return Analysis, determine the most economical alternative below. Assume a minimum attractive rate of retum of 696, and a 6-year life with no salvage value for each. The alternatives are mutually exclusive. Initial cost Annual Cost Annual Benefit IRR.% $3000,000 10000 120,300 18 $100,000 25000 40800 $500,000 12000 9000 150200 55200 12 45
6. Given the data in the table below for two mutually exclusive alternatives, determine the value "x" for the two alternatives to be equally attractive. Use an interest rate of 8% per year. 20 Initial cost $275 $650 Uniform annual benefit $120 $(x) Salvage value 10% initial cost 20% of initial cost Ufe 6 years
13. Using benefit-cost ratio analysis, b 5 year useful life, and a 15% MARR, determine which of the following mutually exclusive alternatives should be selected. D 310 380 470 Cost Annual Benefit Salvage/Value Ule OS 8 90
solve in word format
Answer the question. onsider the three mutually exclusive alternatives below. Determine which alternative is preferable at an terest rate of 10% per year. Assume all of these projects are repeating perpetually. Alternative A B C Capital investment $400,000 $100,000 $150,000 Annual expense $189,000 $94,500 $134,000 $309,000 $204,500 $300,000 $50,000 $100,000 Annual revenue Salvage value Life, years $65,000 24 36 12 X E B I i Fr
1. Given the costs and benefits of two water pumps, what is the rate of return on the difference of these alternatives? Year -$3000 +800 +800 +800 +800 +800 -$3800 +1200 +1200 +1200 +1200 +1200 What is your choice of these 2 alternatives and why? 2. The manager of a local restaurant is trying to decide whether to buy a charcoal broiling unit or an electric grill for cooking hamburgers. A market study shows customers prefer charcoal broiling but the...
please solve in word format
Answer the question. Consider the three mutually exclusive alternatives below. Determine which alternative is preferable at an interest rate of 10% per year. Assume all of these projects are repeating perpetually, Alternative A B C Capital investment $400,000 $100,000 $150,000 Annual expense $189,000 $94,500 $134,000 Annual revenue $309,000 $204,500 $300,000 Salvage value $65,000 $50,000 $100,000 Life, years | 24 36 12 1 i FBI , O EE % 5 % Solution: AW(M) - -400,000 (A/P,...
uestion 3 Using PW Analysis, for mutually exclusive projects, more than one project can be selected O True O False stion 7 Compare the machines shown below on the basis of their capitalized cost. Use i-10% per year Machine 1 20,000 9000 4000 Machine 2 First cost,S Annual cost,/year Salvage value, $ Life, years -100,000 -7000 Infinite A.-20000(A/P 1096.3)-9000+4000WF,1096,3) B. $-15832.40 C. $-170,000 D. 1 E. $-180,000 F. 2 G. S-166,540 Equation for AW1- Answer 2 decimals) + Selection-
uestion...
2. [Problem 7-63] If 8% is considered the minimum attractive rate of return, which alternative should be selected using an incremental analysis? Year -$5000 -3000 4000 4000 4000 -$5000 2000 2000 2000 2000 3. [Problem 8-5] A stockbroker has proposed two investments in low-rated corporate bonds paying high interest rates and selling at steep discounts (junk bond). The bonds are rated as equally risky and both mature in 15 years. Bond Stated Value Annual Interest Payment $67 Current Market Price...
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