Quiz 7 Consider three alternatives, each with a 10-year useful life. If the MARR is 10%, which al...
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
please show all work in details Consider the following three alternatives $800 $300 $150 Cost Uniform annual 142 60 33.5 benefit Each has a 10-yr life and the MARR is 10%, which alternative should be selected if one uses: a) The Pay-back period methood b) The benefit-cost ration analysis Consider the following three alternatives $800 $300 $150 Cost Uniform annual 142 60 33.5 benefit Each has a 10-yr life and the MARR is 10%, which alternative should be selected if...
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
1. Which alternative of the three alternatives below should be selected if the MARR = 6%? Use the following to compare projects: PW analysis B/C ratio for each project Incremental B/C ratio assessment IRR for each project over its respective service life Incremental IRR using the same (a common) number of years for each project Are any of the projects acceptable? Are any not acceptable? Which project would you recommend and why? Alternatives: A B C First Cost $800 $300 ...
Which alternative of the three alternatives below should be selected if the MARR = 6%? Use the following to compare projects a.PW analysis b.B/C ratio for each project c.Incremental B/C ratio assessment (Be sure to define Defender and Challenger in each incremental analysis) d.IRR for each project over its respective service life e.Incremental IRR using the same (a common) number of years for each project Are any of the projects acceptable? Are any not acceptable? Which project would you recommend...
Which alternative of the three alternatives below should be selected if the MARR = 6%? Use the following to compare projects: a. PW analysis b. B/C ratio for each project c. Incremental B/C ratio assessment (define Defender and Challenger in each analysis) d. IRR for each project over its respective service life e. Incremental IRR using the same (a common) number of years for each project Are any of the projects acceptable? Are any not acceptable? Which project would you...
international genetic technologies inc. (InGen) is examining the following three mutually exclusive alternatives. 3) Using benefit-cost ratio analysis, a 10-year useful life and a MARR of 25%, determine which of the following mutually exclusive models should be selected. А в C D E Initial Cost $100 $200 $300 $400 $500 $37 $60 $83 $137 $150 Annual Benefits 4) A big box company is using a benefit-cost ratio analysis to select which one of the 3 alternatives shown below should be...
A small construction project having a useful life of 5 years has five mutually exclusive alternatives. With an MARR of 6% and using incremental IRR which alternative should be selected? Note: First solve for the IRR for each alternative. You may use a spreadsheet to iterate to solve, but solve for the IRR for Alternative II 'by hand' by iterating between the interest rate tables in the back of the book. Alternatives III $400 $90 Initial Cost Uniform Annual Benefit...
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...
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...