Given the financial data for four mutually exclusive alternatives in the table below,
A |
B |
C |
D |
|
First cost |
$18,000 |
$40,000 |
$21,200 |
45,000 |
O &M Cost/ year |
2,600 |
5,000 |
3,900 |
11,000 |
Benefit/year |
7,500 |
16,000 |
11,500 |
25,000 |
Salvage value |
2,000 |
6,000 |
6,000 |
12,000 |
Life in years |
4 |
Use a Rate of Return Analysis to solve for the following:
Given the financial data for four mutually exclusive alternatives in the table below, A B C D First cost $18,000 $40,000 $21,200 45,000 O &M Cost/ year 2,600 5,000...
Problems 4 The cash flows for three mutually exclusive alternatives are given in table below use MARR = 4% Initial cost Annual benefits RoR Life in years Alt. A $11,000 $3.500 15% Alt. B $23,000 $6,500 13% Alt. C $20,000 $5,500 11% Which alternative should be selected based on a Payback period and () Net Future Worth analyses
*Two mutually exclusive cost alternatives, Machine A and Machine B, are being evaluated Given the following time events and incremental cash flow. If the MARR IS 12% per year, which alternative Machine A or Machine B) should be selected on the basis of rate of return? Assume Machine B requires the extra $8,000 initial Investment (Hint: You can solve with IRR function in Excel) Incremental Year Cash Flow S(Machine B-A) - 8,000 500 1.500 6,000 The "Incremental ROR" is more...
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