Homework Answers
The net present worth(NPW) project evaluation method involves the calculation of the present value of all future cash flows and then summing up. It is called "net" worth amount because it is netting of all cash outflows from cash inflows.
MARR = 12%, Life = 15 years, Initial Cost = $10,334, Salvage
Value = $3,000
Net Present Worth = -$10,334 + $3,000(Present Value, 12%,15) -
$1,000(Present Value of Annuity, 12%,15) - $1,490(Present Value,
12%,5) - $1,172(Present Value, 12%,10) = -$10,334 + $3,000(0.1827)
- $1,000(6.8109) - $1,490(0.5674) - $1,172(0.3220) = -$10,334 +
$548.1 - $6,810.9 - $845.43 - $377.38 = -$17,819.61
Since, Net Present Worth is negative, a combined cycle power plant is not profitable.
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Evaluate a combined cycle power plant on the basis of the Present Worth Method (PW) when...
Evaluate a combined cycle power plant on the basis of the PW method when the MARR...
Evaluate a combined cycle power plant on the basis of the PW method when the MARR is 15 % per year . Pertinent cost data are as follows. Power Plant (S) Investment cost $11,000 Useful life 12 years $4,000 S1,000 Market value (EOY 12) Annual operating expenses Overhaul cost-end of 5th year Overhaul cost-end of 10th year $200 $650 Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year. PW(15%)...
Answer step by step, in an orderly way. Thank you Question 5 Evaluate a combined cycle...
Answer step by step, in an orderly way. Thank you
Question 5 Evaluate a combined cycle power plant on the basis of the Present Worth Method (PW) when MARR is 12% per year Pertinent cost data are as follows: (Power Plant (thousands of S) Investment Cost: $12,297 Useful life: 15 ears Market Value (EQY 15) $3,000 Annual Operating expenses: $1,000 Overhaul cost-end of 5th year $1,933 Overhaul cost-end of 10th year $1,219 -> Moving to the next question prevents changes...
Q2. Evaluate an electronic fabrication machine on the basis of the annual worth method when the...
Q2. Evaluate an electronic fabrication machine on the basis of the annual worth method when the MARR is 10% per year. Relevant cost data are as follows: (7 Marks) Investment cost Useful life Market (salvage) value at end of useful life Annual operating expenses Overhead cost-end of 8th year Overhead cost-end of 12th year Electronic Fabrication Machine $18,000 15 years $6,000 $450 $1000 $1500 Using Aw(i) method with short explai Please don't use excel use AW(i) factor
An integrated, combined cycle power plant produces 285 MW of electricity by gasifying coal. The capital...
An integrated, combined cycle power plant produces 285 MW of electricity by gasifying coal. The capital investment for the plant is $540 million, spread evenly over two years. The operating life of the plant is expected to be 23 years. Additionally, the plant will operate at full capacity 72% of the time (downtime is 28% of any given year). The MARR is 9% per year a. If this plant will make a profit of two cents per kilowatt-hour of electricity...
please help with question #12.24 without using excel. net present worth of this investment. Contributedby value,...
please help with question #12.24 without using
excel.
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An electrical utility is experiencing a sharp power demand that continues to grow at a high rate in a certain loca...
An electrical utility is experiencing a sharp power demand that continues to grow at a high rate in a certain local area. Two alternatives are under consideration. Each is designed to provide enough capacity during the next 25 years, and both will consume the same amount of fuel, so fuel cost is not considered in the analysis. • Alternative A. Increase the generating capacity now so that the ultimate demand can be met without additional expenditures later. An investment of...
Economics practice questions (please show your work and the answer could always be a 'none of...
Economics practice questions (please show your work and the
answer could always be a 'none of the above' answer in addition to
the options given)
A waste disposal company is considering the replacement of one of its aging trucks. The key parameters of the three trucks under scrutiny are rovided below Delta Epsilon 375,000 195,000 at EOY1 Zeta Parameters 1. Initial Cost 250,000 450,000 230,000 at EOY1 2. Revenues increasing by 3.000 annually 2.5% annually thereafter 140,000 at EOY1 235,000...
Overview: In this milestone, you will move through the next phase of the accounting cycle by...
Overview: In this milestone, you will move through the next
phase of the accounting cycle by creating the trial balance,
adjusting entries, and adjusted trial balance. Completing the
adjusting entries implements the matching, timing, and periodicity
of the generally accepted accounting principles. Omission of this
step will show a higher net income than there actually is, which
could cause users of the financial statements to make an incorrect
decision and suffer financially. Prompt: You will find the provided
data for...
I need answers for my reviewer. 1. The time period assumption assumes that an organization's activities...
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Evaluate a combined cycle power plant on the basis of the PW method when the MARR is 15 % per year . Pertinent cost data are as follows. Power Plant (S) Investment cost $11,000 Useful life 12 years $4,000 S1,000 Market value (EOY 12) Annual operating expenses Overhaul cost-end of 5th year Overhaul cost-end of 10th year $200 $650 Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year. PW(15%)...
Answer step by step, in an orderly way. Thank you
Question 5 Evaluate a combined cycle power plant on the basis of the Present Worth Method (PW) when MARR is 12% per year Pertinent cost data are as follows: (Power Plant (thousands of S) Investment Cost: $12,297 Useful life: 15 ears Market Value (EQY 15) $3,000 Annual Operating expenses: $1,000 Overhaul cost-end of 5th year $1,933 Overhaul cost-end of 10th year $1,219 -> Moving to the next question prevents changes...
Q2. Evaluate an electronic fabrication machine on the basis of the annual worth method when the MARR is 10% per year. Relevant cost data are as follows: (7 Marks) Investment cost Useful life Market (salvage) value at end of useful life Annual operating expenses Overhead cost-end of 8th year Overhead cost-end of 12th year Electronic Fabrication Machine $18,000 15 years $6,000 $450 $1000 $1500 Using Aw(i) method with short explai Please don't use excel use AW(i) factor
An integrated, combined cycle power plant produces 285 MW of electricity by gasifying coal. The capital investment for the plant is $540 million, spread evenly over two years. The operating life of the plant is expected to be 23 years. Additionally, the plant will operate at full capacity 72% of the time (downtime is 28% of any given year). The MARR is 9% per year a. If this plant will make a profit of two cents per kilowatt-hour of electricity...
please help with question #12.24 without using
excel.
net present worth of this investment. Contributedby value, and Assume unit 444 CHAPTER 12: INCOME TAXES FOR CORPORATIONS Mukasa Ssemakula, Wayne State University (b) Explain why the rate of return obtained in part (a) is different from the rate of return obtained in Problem 12-20. 12-25 A firm has invested $400.000 in car- ment. They will depreciate the r-washing equip equipment by 6% (a) Comput (b) Comput MACRS G MACRS, assuming a...
An electrical utility is experiencing a sharp power demand that continues to grow at a high rate in a certain local area. Two alternatives are under consideration. Each is designed to provide enough capacity during the next 25 years, and both will consume the same amount of fuel, so fuel cost is not considered in the analysis. • Alternative A. Increase the generating capacity now so that the ultimate demand can be met without additional expenditures later. An investment of...
Economics practice questions (please show your work and the
answer could always be a 'none of the above' answer in addition to
the options given)
A waste disposal company is considering the replacement of one of its aging trucks. The key parameters of the three trucks under scrutiny are rovided below Delta Epsilon 375,000 195,000 at EOY1 Zeta Parameters 1. Initial Cost 250,000 450,000 230,000 at EOY1 2. Revenues increasing by 3.000 annually 2.5% annually thereafter 140,000 at EOY1 235,000...
Overview: In this milestone, you will move through the next
phase of the accounting cycle by creating the trial balance,
adjusting entries, and adjusted trial balance. Completing the
adjusting entries implements the matching, timing, and periodicity
of the generally accepted accounting principles. Omission of this
step will show a higher net income than there actually is, which
could cause users of the financial statements to make an incorrect
decision and suffer financially. Prompt: You will find the provided
data for...
I need answers for my reviewer.
1. The time period assumption assumes that an organization's activities may be divided into specific reporting time periods including all of the following A Month B Quarters C. Calendar years. D. Days 2. The 12-month period that ends when a company's sales activities are at their lowest level is called the A Fiscal year. B Calendar year. C. Natural business year. D. Accounting period 3. Courtney Company purchased equipment on November 1, 2018 and...
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