First Cost S100,000 $35,000 per year increase of $3,000 per year S5 $205 Benefits O&M Costs...
#14
the following information to answer questions 14 through 18. Assume Do-Nothing is an option. MARR-10% Alternative #1 Alternative #2 $205,000 $43,000 in year 1, First Cost $100,000 $35,000 per year increase of $3,000 per year S5,000 per years $10,000 per year Benefits O&M Costs Salvage Value for each of the following years $10,000 Useful Life ROR S15,000 8 years 10.85% 14. The NPW of Alternative #1 (necessary to make a decision between the two alternative) is closest to a)...
#15
Use the following information to answer questions 14 through 18. Assume Do-Nothling Alternative #1 Alternative #2 $205,000 $45,000 in year 1; First Cost $100,000 $35,000 per year increase of $3,000 per year S5,000 per years $10,000 per year Benefits O&M Costs Salvage Value Useful Life ROR for each of the following years $10,000 $15,000 years 10.85% 14. The NPW of Alternative #1 (necessary to make a decision between the two a) S3,249 $1,930 $543 e) $2,227 f)-$2,311 8) $723...
1. Alternative R has a first cost of $58,000, annual M&O costs of $26,000, and a $10,000 salvage value after 5 years. Alternative S has a first cost of $105,000 and a $50,000 salvage value after 5 years, but its annual M&O costs are not known. Determine the M&O costs for alternative S that would yield a required incremental rate of return of 12%.
Alternative R has a first cost of $82,000, annual M&O costs of $52,000, and a $20,000 salvage value after 5 years. Alternative S has a first cost of $175,000 and a $70,000 salvage value after 5 years, but its annual M&O costs are not known. Determine the M&O costs for alternative S that would yield a required incremental rate of return of 24%. The M&O cost for alternative S is $_____ .
Alternative R has a first cost of $76,000, annual M&O costs of $54,000, and a $20,000 salvage value after 5 years. Alternative S has a first cost of $175,000 and a $61,000 salvage value after 5 years, but its annual M&O costs are not known. Determine the M&O costs for alternative S that would yield a required incremental rate of return of 30%. The M&O cost for alternative S is____ $ .
Consider the cash flows in problem #1. If MARR=20%,
the benefit/cost ratio is closest to..
I know the answer is c 0.83 but I don't know how to
add an increasing O&M cost to my EUAC equation
1. Given the characteristics below, the simple payback period for Altermative XYZ. Inc. is elosest to. Alternative XYZ, Inc Initial Cost Benefits 13 $80,000 per year S30,000 in year l; O&M Costs Remainingvears?ncreasebr5% more than the previous year Salvage $25,000 36S 52,01 a)...
Question 12 For alternatives shown in the table below you are trying to decide which alternative you should choose based on their capitalized costs (CC). Use an interest rate of 10% per year. Machine A Machine B 240,000 First cost (AED) 20,000 Annual maintenance cost per year, AED 5,000 2.300 Periodic cost every 10 years, AED 10,000 Salvage cost 2000 Life. vears Match the closest correct answers for the below questions: Calculate the present value of the maintenance costs for...
Use the following information to answer questions 9 and 10. You must decide between the following two potential altermatives using Rate of Return Analysis. MARK-12%, Alternative #1 25,000 Alternative W 40,000 Initial C Benefits O&M Costs Salvage Life (in years) $11,000 per year $10,000 per year $3,000 per year S2,000 per year $5,000 5,000 16.27% 9. The ROR for Alternative w2 is closest to... a) 13.25% b) 32.5% C) 1 1.81% d)20% e) 25% 012.47% g) 6.34% h) 18.77% i)...
A five-year-old defender has a current market value of $4,000 and expected O&M costs of $3,400 this year, increasing by $1,200 per year. Future market values are expected to decline by $1,100 per year. The machine can be used for another three years. The challenger costs $6,500 and has O&M costs of $2,200 per year, increasing by $600 per year. The machine will be needed for only three years, and the salvage value at the end of that time is...
2) A machine would cost $100,000, and would generate revenues of $21,000 per year. However, O&M costs would be $7,000 per year. The machine would last 10 years and your MARR is 7% annual rate compounded annually. What is the Net Present Value of this potential investment? ________________________ Should you invest in the machine? (One sentence answer why or why not)____________ ___________________________________________________________________________