ZuoTi.Pro
Question

Please show all work, the directions is on the first pictures. Please show all steps, thanks!  

Draw detailed and appropriate cash flow diagrams for each problem, and use the EE Equations to solve each problem. Show and explain all work. Factor Name Formula Converts to Fgiven P to P given F to A given F to A given F to F given A to P given A Symbol (F/P, i%, n) (P/F, i%, n) (A/F, i%, n) Single Payment Compound Amount Single Payment Present Worth Uniform Series Sinking Fund I+i (AP, i%, n) (FA, ino, n) (P/A , i%, n) Capital Recovery -1 (0+iy-1 Uniform Series Compound Amount Uniform Series Present Worth

1-3. A contractor is considering the following three alternatives: A. Purchase a new microcomputer system for $5.017. The system is expected to last for 6 years with a salvage value of $1,000. B. Lease a new microcomputer system for $1,400 per year, payable in advance. It should last 6 years. C. Purchase a used microcomputer system for $2,720. It is expected to last 3 years with essentially no salvage value. (a) For a MARR of 12%, which alternative should be selected? (b) For a MARR of 15%, which alternative should be selected? Note: Assume equal replacement conditions for this problem.

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Solution Calculahion of better atteumative, taktn MARR In the Rrirst alternattve ,there tuitl be total รื่ 1000 in the 6th year. Therefore, we wal) Year and will ind out the actual utflon teu: lf at 6h year eent Vakuel substract the present value op阝1000 at oth → Total out blow at om year 8901 - 50 (140.12) Net outAlow fn altemative I 4510 → Now,uge we tUT11 calculate Netolf in opifon 2 For this we wil calculate aargae いutflouus l then! Present value atotn YearFomula to caleulatepreent vatue ur 잇 coniform) t4000-12)1 二丰5156 O 12 1 o12 リ Now, we will calculate the 3rd allbunative. Here, ou the e the mřcro computer s 3yrs we wll atsume, that we wl putchaie similar Eomputer akate to make the life oquial, Aal, 13ee- rons Accordingly → Olf in the oth year : $ 2420 0+0,12) 3 Tofa 4656Particulars Alt-1 Att 2 AIL. 3 5156 1656 Total Olf 45 JO As the tost in Jst Att. is lowest, therefore allemativet ushase theAtt.3 01f In the Oth year2420 Pv e b olf ơn the 3rdyears $1988 2320 C1t 01s) NPV 41508 Parttuutlars Alt.i Att.2 Attろ total OIf 535 5298 4508 hs, the cost fn fitt .ろ 7s tDWest ,therefore, punchasimg mifcrpcomputer Ror alternative 3us.houd be Relected

0 0
Add a comment
Know the answer?
Add Answer to:
Please show all work, the directions is on the first pictures. Please show all steps, thanks!  ...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • please complete questions 3-5 as I completed the first two and confused on the rest. please...

    please complete questions 3-5 as I completed the first two and confused on the rest. please show all work and please complete the problem! thanks!! 1-4. A contractor is considering the following three alternatives: A. Purchase a new microcomputer system for $5,017. The system is expected to last for 6 years with a salvage value of $1,000 last 6 years. essentially no salvage value. B. Lease a new microcomputer system for $1.020per year. payable in advance. It should C. Purchase...

  • please show all steps, and answer all of the question. The second pictures states how it...

    please show all steps, and answer all of the question. The second pictures states how it should be solved. thanks! 1-S. A large engineering company is considering the following three major capital investments (each investment is considered to have zero salvage value at the end of its life) (b) For a MARR of 15%, which investment, if any, would you select? Why? (How do you handle the unequal lives?) InitialEstimated capital annual receipts Estimated annual disbursements Estimated life required Investment...

  • please show all steps, I need help on part D. Thanks! row detailed and appropriate cash...

    please show all steps, I need help on part D. Thanks! row detailed and appropriate cash flow diagrams for each problem, and use quations to solve each problem. Show and explain all work Facter Name ormula Converts to given P to P given F to A given F to A given fP to F given A to P given A Single Payment Compound Amount (F/P, ma, n) P/F, P%, n) AF.%, n) (AP, ins, n) Single Payment Present Worth Uniform...

  • Please help!!! Engineering Economics class homework!! attached below are the tables needed!! first picture is alterna...

    Please help!!! Engineering Economics class homework!! attached below are the tables needed!! first picture is alternative options, second picture is i=9% values, third picture is i=18% values!!! Potable water is in short supply in many countries. To address this need, two mutually exclusive water purification systems are being considered for implementation in China. Doing nothing is not an option. Assume the repeatability of cash flows for alternative 1. a. Use the PW method to determine which system should be selected...

  • i want a hand written solution if possible. thanks! Two mutually exclusive alternatives are being considered...

    i want a hand written solution if possible. thanks! Two mutually exclusive alternatives are being considered for the environmental protection equipment at a petroleum refinery. One of these alternatives must be selected. a. Which environmental protection equipment alternative should be selected? The firm's MARR is 20% per year. Assume the equipment will be needed indefinitely. Assume repeatability is appropriate for this comparison. b. Assume the study period is shortened to five years. The market value of Alternative B after five...

  • Potable water is in short supply in many countries. To address this​ need, two mutually exclusive...

    Potable water is in short supply in many countries. To address this​ need, two mutually exclusive water purification systems are being considered for implementation in China. Doing nothing is not an option. Assume the repeatability of cash flows for alternative 1. a. Use the PW method to determine which system should be selected when MARR = 7% per year. b. Which system should be selected when MARR = 15​% per​ year? a. The PW of system 1 is $_______. (Round...

  • Question 1: (6 points) A company having a cost of capital rate of 8% purchases a...

    Question 1: (6 points) A company having a cost of capital rate of 8% purchases a $200,000 track loader. This machine has an expected service life of 5 years and will be used 2,000 hrs per year. The estimated salvage value at the end of 5 years is $40,000. Fuel, oil, grease, and minor maintenance are estimated to cost $35.00 per operating hour. No tire replacement since this is a track machine. TABLE 2.1 Economic analysis relationships Name Symbol Converts...

  • Problem 12-12 (algorithmic) Question Help The tree diagram in figure below describes the uncertain cash flows...

    Problem 12-12 (algorithmic) Question Help The tree diagram in figure below describes the uncertain cash flows for an engineering project. The analysis period is two years, and MARR = 12% per year. Based on this information, a. What are the E(PW), V(PW), and SD(PW) of the project? b. What is the probability that PW20? WClick the icon to view the tree diagram. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12%...

  • please show excel formulas so I can understand the problem THANKS 9-50 Consider four mutually exclusive...

    please show excel formulas so I can understand the problem THANKS 9-50 Consider four mutually exclusive alternatives: (Α) A B C D Cost $75.0 $50.0 $15.0 $90.0 Uniform annual 18.8 13.9 4.5 23.8 benefit Each alternative has a 5-year useful life and no sal- vage value. The MARR is 10%. Which alternative should be selected, based on (a) The payback period (b) Future worth analysis (c) Benefit-cost ratio analysis

  • Football Comm LLC is a manufacturer of devices for football coaches and their coaching staffs that...

    Football Comm LLC is a manufacturer of devices for football coaches and their coaching staffs that enables them to quickly and effectively communicate with one another during a game through a wireless sideline headset system. Currently, the company purchases all of the headsets included in their systems from a China-based supplier, but they have experienced a significant decrease in overall headset quality. To correct the problem, the company is considering producing their own headsets in-house The company estimates that the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT