Homework Answers
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |
| 8 % (1/1.08)^n (n is year) | 0.925926 | 0.857339 | 0.793832 | 0.73503 | 0.680583 | 0.63017 | 0.58349 | 0.540269 | 0.500249 | 0.463193 | |
| a | 1-10 Years (Sum of 1-10 years present value factors) | 6.710081 | |||||||||
| b | 1-9 Years | 6.246888 | |||||||||
| c | 1-8 Years | 5.746639 | |||||||||
| Alternative | A | B | C | ||||||||
| d | Investment out flow | 10000 | 9000 | 8000 | |||||||
| e | Annual Revenues | 7000 | 7000 | 7000 | |||||||
| f | Annual Costs | 2000 | 2000 | 2000 | |||||||
| g | Net inflow (e-f) | 5000 | 5000 | 5000 | |||||||
| Useful life | 10 year | 9 Years | 8 Years | ||||||||
| h | Present value factos (a, b, c respectively) | 6.710081 | 6.246888 | 5.746639 | |||||||
| i | Present value of inflows (g*h) | 33550.41 | 31234.44 | 28733.19 | |||||||
| j | Net Present Value (i-d) | 23550.41 | 22234.44 | 20733.19 | |||||||
| Equated Net present value (j/h) | 3509.705 | 3559.283 | 3607.882 | ||||||||
| Rank | 3 | 2 | 1 |
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Question 2. (30 points) You have 3 capital investment alternatives that are expected to increase the company's income a...
Please DO NOT use excel. Show all steps please. You have 2 mutually exclusive alternatives and a MARR of 9%. Which alternative is preferred, based on repeatability assumption? Alternative E F Cap...
Please DO NOT use excel. Show all steps please. You have 2 mutually exclusive alternatives and a MARR of 9%. Which alternative is preferred, based on repeatability assumption? Alternative E F Capital Investment $14,000 $65,000 Annual Expenses $14,000 $9,000 Useful Life (years) 4 20 Market Value at end of useful life $8,000 $13,000
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
QUESTION 2 Consider the following mutually exclusive alternatives: Alternative A Alternative B Capital investment $473,000 $1,114,000...
QUESTION 2 Consider the following mutually exclusive alternatives: Alternative A Alternative B Capital investment $473,000 $1,114,000 Net annual receipts $104,100 $235,000 Both alternatives have a useful life of 20 years and no market value at that time. The MARR is 20 % per year. Determine the annual worth (AW) of the most profitable course of action. (Enter your answer as a number without the dollar sign.)
engineering economy QUESTION 2 The following mutually exclusive investment alternatives have been presented to you A...
engineering economy
QUESTION 2 The following mutually exclusive investment alternatives have been presented to you A B C E Capital investment $60,000 $90,000 $40,000 $30,000 $70,000 Annual expenses $30,000 $40,000 $25,000 $15,000 $35,000 Annual revenues $50,000 $52,000 $38,000 $28,000 $45,000 MV at EOY 10 $15,000 $15,000 $10,000 $10,000 $15,000 IRR 31.5 % 7.4 % 30.8 % 42.5 % 9.2 % The life span of all alternatives is 10 years.. Using a MARR of 15 % per year, what is the...
The following mutually exclusive investment alternatives have been presented to you. The life of all alternatives...
The following mutually exclusive investment alternatives have been presented to you. The life of all alternatives is 10 years. A В C Capital investment Annual expenses $60,000 $90,000 $40,000 $30,000 $70,000 35,000 45,000 15,000 30,000 40,000 25,000 16,000 Annual revenues 50,000 52.000 38,000 28,000 Market value at EOY 10 15,000 10,000 10,000 39.0% 10,000 IRR ??? 7.4% 30.8% 9.2% After the base alternative has been identified, the first comparison to be made in an incremental analysis should be which of...
Question 42 (2 points) You have the following information on a potential investment. Capital investment $23,000 Estimat...
Question 42 (2 points) You have the following information on a potential investment. Capital investment $23,000 Estimated useful life 4 years Estimated salvage value zero Estimated annual net cash inflows Year 1- $3,000 Year 2- $8,000 Year 3- $15,000 Year 4-$9,000 Required rate of return 12% What is the cash payback period of the investment? 2.63 years 2.8 years 2.20 years 2.37 years
You have been presented with 4 investment opportunities. You will receive an income on each investment...
You have been presented with 4 investment opportunities. You will receive an income on each investment for the next 8 years. MARR is 12% for your personal investments. Using an incremental analysis, which alternative should be chosen? The table below includes initial investment, net annual income, and IRR ch alternative. I would recomment to use incremental PW. however you can use your preferred method. A Capital investment $12,000 B $14,400 Alternative C D $16,250 $20,000 Net annual income $2,500 $3,050...
You have been presented with 4 investment opportunities. You will receive an income on each investment...
You have been presented with 4 investment opportunities. You will receive an income on each investment for the next 8 years. MARR is 12% for your personal investments. Using an incremental analysis, which alternative should be chosen? The table below includes initial investment, net annual income, and IRR for each alternative. I would recomment to use incremental PW, however you can use your preferred method. A Capital investment $12,000 B $14,400 Alternative C $16,250 D $20,000 Net annual income $2,500...
Please write neatly. DO NOT USE EXCEL! Thank you. Question #4 (25 Points) Three alternatives are...
Please write neatly. DO NOT USE EXCEL! Thank
you.
Question #4 (25 Points) Three alternatives are being considered. The table below shows the associated cash flows with each alternative The company uses MARR of 20% per year Alternative A $40,000 $38,000 $25,000 $10,000 6 vears 26% Alternative BAlternative C Capital investment Annual Revenu Annual Cost Salvage value Useful life IRR $60,000 $53,000 $30,000 $10,000 6 years 3390 $30,000 $28,000 $16,000 $10,000 6 vears 35% Using incremental analysis, determine which is...
You have been presented with 4 investment opportunities. You will receive an income on each investment...
You have been presented with 4 investment opportunities. You will receive an income on each investment for the next 8 years. MARR is 12% for your personal investments. Using an incremental analysis, which alternative should be chosen? The table below includes initial investment, net annual income, and IRR ch alternative. I would recomment to use incremental PW. however you can use your preferred method. A Capital investment $12,000 B $14,400 Alternative C D $16,250 $20,000 Net annual income $2,500 $3,050...
QUESTION 2 Consider the following mutually exclusive alternatives: Alternative A Alternative B Capital investment $473,000 $1,114,000 Net annual receipts $104,100 $235,000 Both alternatives have a useful life of 20 years and no market value at that time. The MARR is 20 % per year. Determine the annual worth (AW) of the most profitable course of action. (Enter your answer as a number without the dollar sign.)
engineering economy
QUESTION 2 The following mutually exclusive investment alternatives have been presented to you A B C E Capital investment $60,000 $90,000 $40,000 $30,000 $70,000 Annual expenses $30,000 $40,000 $25,000 $15,000 $35,000 Annual revenues $50,000 $52,000 $38,000 $28,000 $45,000 MV at EOY 10 $15,000 $15,000 $10,000 $10,000 $15,000 IRR 31.5 % 7.4 % 30.8 % 42.5 % 9.2 % The life span of all alternatives is 10 years.. Using a MARR of 15 % per year, what is the...
The following mutually exclusive investment alternatives have been presented to you. The life of all alternatives is 10 years. A В C Capital investment Annual expenses $60,000 $90,000 $40,000 $30,000 $70,000 35,000 45,000 15,000 30,000 40,000 25,000 16,000 Annual revenues 50,000 52.000 38,000 28,000 Market value at EOY 10 15,000 10,000 10,000 39.0% 10,000 IRR ??? 7.4% 30.8% 9.2% After the base alternative has been identified, the first comparison to be made in an incremental analysis should be which of...
Question 42 (2 points) You have the following information on a potential investment. Capital investment $23,000 Estimated useful life 4 years Estimated salvage value zero Estimated annual net cash inflows Year 1- $3,000 Year 2- $8,000 Year 3- $15,000 Year 4-$9,000 Required rate of return 12% What is the cash payback period of the investment? 2.63 years 2.8 years 2.20 years 2.37 years
You have been presented with 4 investment opportunities. You will receive an income on each investment for the next 8 years. MARR is 12% for your personal investments. Using an incremental analysis, which alternative should be chosen? The table below includes initial investment, net annual income, and IRR ch alternative. I would recomment to use incremental PW. however you can use your preferred method. A Capital investment $12,000 B $14,400 Alternative C D $16,250 $20,000 Net annual income $2,500 $3,050...
You have been presented with 4 investment opportunities. You will receive an income on each investment for the next 8 years. MARR is 12% for your personal investments. Using an incremental analysis, which alternative should be chosen? The table below includes initial investment, net annual income, and IRR for each alternative. I would recomment to use incremental PW, however you can use your preferred method. A Capital investment $12,000 B $14,400 Alternative C $16,250 D $20,000 Net annual income $2,500...
Please write neatly. DO NOT USE EXCEL! Thank
you.
Question #4 (25 Points) Three alternatives are being considered. The table below shows the associated cash flows with each alternative The company uses MARR of 20% per year Alternative A $40,000 $38,000 $25,000 $10,000 6 vears 26% Alternative BAlternative C Capital investment Annual Revenu Annual Cost Salvage value Useful life IRR $60,000 $53,000 $30,000 $10,000 6 years 3390 $30,000 $28,000 $16,000 $10,000 6 vears 35% Using incremental analysis, determine which is...
You have been presented with 4 investment opportunities. You will receive an income on each investment for the next 8 years. MARR is 12% for your personal investments. Using an incremental analysis, which alternative should be chosen? The table below includes initial investment, net annual income, and IRR ch alternative. I would recomment to use incremental PW. however you can use your preferred method. A Capital investment $12,000 B $14,400 Alternative C D $16,250 $20,000 Net annual income $2,500 $3,050...
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