Homework Answers
Answer:
Based on the given information, cash flows of Alternatives A, B, and C can be mapped year-wise as follows:
Capital investment is treated as cash outflow at the beginning of the project
Profit each year = Annual revenue - Annual expense
Salvage value is treated as cash inflow at the end of the project
| Year | Project A | Project B | Project C |
| 0 | -$400,000 | -$100,000 | -$150,000 |
| 1 | $120,000 | $110,000 | $166,000 |
| 2 | $120,000 | $110,000 | $166,000 |
| 3 | $120,000 | $110,000 | $166,000 |
| 4 | $120,000 | $110,000 | $166,000 |
| 5 | $120,000 | $110,000 | $166,000 |
| 6 | $120,000 | $110,000 | $166,000 |
| 7 | $120,000 | $110,000 | $166,000 |
| 8 | $120,000 | $110,000 | $166,000 |
| 9 | $120,000 | $110,000 | $166,000 |
| 10 | $120,000 | $110,000 | $166,000 |
| 11 | $120,000 | $110,000 | $166,000 |
| 12 | $120,000 | $110,000 | $266,000 |
| 13 | $120,000 | $110,000 | |
| 14 | $120,000 | $110,000 | |
| 15 | $120,000 | $110,000 | |
| 16 | $120,000 | $110,000 | |
| 17 | $120,000 | $110,000 | |
| 18 | $120,000 | $110,000 | |
| 19 | $120,000 | $110,000 | |
| 20 | $120,000 | $110,000 | |
| 21 | $120,000 | $110,000 | |
| 22 | $120,000 | $110,000 | |
| 23 | $120,000 | $110,000 | |
| 24 | $185,000 | $110,000 | |
| 25 | $110,000 | ||
| 26 | $110,000 | ||
| 27 | $110,000 | ||
| 28 | $110,000 | ||
| 29 | $110,000 | ||
| 30 | $110,000 | ||
| 31 | $110,000 | ||
| 32 | $110,000 | ||
| 33 | $110,000 | ||
| 34 | $110,000 | ||
| 35 | $110,000 | ||
| 36 | $160,000 |
Net Present Value (NPV) of these projects / alternatives at given interest rate of 10% p.a. is
| Project A | Project B | Project C | |
| NPV | $622,517 | $878,212 | $920,851 |
Clearly, Alternative C with highest NPV should be the preferred choice.
Add Answer to:
solve in word format
Answer the question. onsider the three mutually exclusive alternatives below. Determine which...
please solve in word format Answer the question. Consider the three mutually exclusive alternatives below. Determine...
please solve in word format
Answer the question. Consider the three mutually exclusive alternatives below. Determine which alternative is preferable at an interest rate of 10% per year. Assume all of these projects are repeating perpetually, Alternative A B C Capital investment $400,000 $100,000 $150,000 Annual expense $189,000 $94,500 $134,000 Annual revenue $309,000 $204,500 $300,000 Salvage value $65,000 $50,000 $100,000 Life, years | 24 36 12 1 i FBI , O EE % 5 % Solution: AW(M) - -400,000 (A/P,...
A government agent considers three mutually exclusive project alternatives to rearrange the traffic in the metropolitan...
A
government agent considers three mutually exclusive project
alternatives to rearrange the traffic in the metropolitan area.
Capital investment costs and net annual benefits of each
alternative are given in the following table. Assume that there
will be no salvage value of the alternatives, and MARR is 10% per
year.
a) Using the B–C ratio method, determine which alternative is
best. Justify your answer showing all your
calculations.
b) If these alternatives were totally independent from each
other, which ones...
Three mutually exclusive alternatives have the following cash flow and a life of 5 years. If...
Three mutually exclusive alternatives have the following cash flow and a life of 5 years. If the MARR is 15%, which project, using the B/C ratio should be selected? First Cost $100,000 $300,000 $500,000 Annual Benefit $37,000 $83,000 $150,000 Show details of calculations in the test paper to receive credit. ОА OO O None of them
QUESTION 6 Data for two mutually exclusive alternatives are given below. Alternatives B $4,000 $800 А...
QUESTION 6 Data for two mutually exclusive alternatives are given below. Alternatives B $4,000 $800 А Initial Cost $5,000 Annual Benefits (beginning at end of $1,500 year 1) Annual Costs (beginning at end of year $500 1) Salvage Value $500 Useful Life (years) 5 $200 $0 10 Compute the net present worth for each alternative and choose the better alternative. MARR = 8%
* Question Completion Status: Mutually Exclusive Alternative Four mutually exclusive alternatives are being evaluated, and their...
* Question Completion Status: Mutually Exclusive Alternative Four mutually exclusive alternatives are being evaluated, and their costs and revenues are itemized in Table a. If the MARR is 15% per year and the analysis period is 12 years, use the PW method to determine which alternatives are economically acceptable and which one should be selected? Capital Investment Annual Revenues less expenses Market Value (end of useful life) Useful life (years) $150,000 15,200 10,000 $125,000 31,900 $200,000 35,900 15,000 $100,000 41,500...
ANSWER THE FOLLOWING QUESTIONS:- Three mutually exclusive design alternatives are being considered. The estimated cash...
ANSWER THE FOLLOWING QUESTIONS:-
Three mutually exclusive design alternatives are being considered. The estimated cash flows for each alternative are given. The interest rate is 20% per year. At the conclusion of the useful life, the investment will be sold A C Investment cost $28,000 $55,000 $13,000 $28,000 $8,000 $40,000 Annual expenses Annual revenues $15,000 $23,000 $6,000 10 years $22,000 $32,000 13 $10,000 Salvage value Useful life 10 years 10 years A decision-maker can select one of these alternatives or...
Assume a mutually exclusive scenario. Compare three alternatives on the basis of their capitalized cost (CC)...
Assume a mutually exclusive scenario. Compare three alternatives on the basis of their capitalized cost (CC) at i=10% per year, which is the best alternative in this scenario? • Alternative 1, AW = $87,500 and n = (forever) • Alternative 2, PW = -$895,000 and n = (forever) • Alternative 3, First cost (FC) of $900,000, annual operating savings of 3,000 per year, salvage = $200,000, and n = (forever) Alternative 2 Alternative 3 None of them Alternative 1 QUESTION...
Question 1 0.15 pts Of the following equations, which will allow you to solve for the...
Question 1 0.15 pts Of the following equations, which will allow you to solve for the ROR of this cash flow? Year Cash Flow $-15,000 O 1 $2,500 2 $5,000 $7,500 4 $10,000 15,000 2500(P/A, i, 5) +2500 (P/G, i, 5) 0 15,000 2500(P/A, i, 5)+2500 (P/G, i, 5) 15,000 2500(P/G, i*, 5) 0 150002500(P/G, i, 5) 15,000 2500(P/A, i", 4) +2500 (P/G, i", 4) 0 15,000 2500(P/A, i, 4)+2500 (P/G, i, 4) = Ln Question 2 0.3 pts Petra's...
Please help!! Table included!! Engineering economics homework!! Three mutually exclusive earth-moving pieces of equipment are being...
Please help!! Table included!! Engineering economics
homework!!
Three mutually exclusive earth-moving pieces of equipment are being considered for several large building projects in India over the next five years. The estimated cash flows for each alternative are given below. The construction company's MARR is 12% per year. Which of the three alternatives, if any, should be adopted? Assume repeatability is appropriate for this comparison. Caterpillar Deere Case Capital investment $20,000 $26,000 $17,000 Net annual revenue $6,500 $10,000 $5,500 Salvage value...
dt Moving to another question will save this response. Question Question 12 15 points For alternatives shown n the table below you are trying to decide which alternative you should choose based...
dt Moving to another question will save this response. Question Question 12 15 points For alternatives shown n the table below you are trying to decide which alternative you should choose based on their capitalized costs use an interest rate of 10% per year Machine A Machine B First cost (AED) Ansual maintenance cost per year, AFD 5000 20,000 240,000 2,300 Periodic cost every 10 years,AED 10,000 Salvage cost 2000 Lide, years Match the closest correct answers for the below...
please solve in word format
Answer the question. Consider the three mutually exclusive alternatives below. Determine which alternative is preferable at an interest rate of 10% per year. Assume all of these projects are repeating perpetually, Alternative A B C Capital investment $400,000 $100,000 $150,000 Annual expense $189,000 $94,500 $134,000 Annual revenue $309,000 $204,500 $300,000 Salvage value $65,000 $50,000 $100,000 Life, years | 24 36 12 1 i FBI , O EE % 5 % Solution: AW(M) - -400,000 (A/P,...
A
government agent considers three mutually exclusive project
alternatives to rearrange the traffic in the metropolitan area.
Capital investment costs and net annual benefits of each
alternative are given in the following table. Assume that there
will be no salvage value of the alternatives, and MARR is 10% per
year.
a) Using the B–C ratio method, determine which alternative is
best. Justify your answer showing all your
calculations.
b) If these alternatives were totally independent from each
other, which ones...
Three mutually exclusive alternatives have the following cash flow and a life of 5 years. If the MARR is 15%, which project, using the B/C ratio should be selected? First Cost $100,000 $300,000 $500,000 Annual Benefit $37,000 $83,000 $150,000 Show details of calculations in the test paper to receive credit. ОА OO O None of them
QUESTION 6 Data for two mutually exclusive alternatives are given below. Alternatives B $4,000 $800 А Initial Cost $5,000 Annual Benefits (beginning at end of $1,500 year 1) Annual Costs (beginning at end of year $500 1) Salvage Value $500 Useful Life (years) 5 $200 $0 10 Compute the net present worth for each alternative and choose the better alternative. MARR = 8%
* Question Completion Status: Mutually Exclusive Alternative Four mutually exclusive alternatives are being evaluated, and their costs and revenues are itemized in Table a. If the MARR is 15% per year and the analysis period is 12 years, use the PW method to determine which alternatives are economically acceptable and which one should be selected? Capital Investment Annual Revenues less expenses Market Value (end of useful life) Useful life (years) $150,000 15,200 10,000 $125,000 31,900 $200,000 35,900 15,000 $100,000 41,500...
ANSWER THE FOLLOWING QUESTIONS:-
Three mutually exclusive design alternatives are being considered. The estimated cash flows for each alternative are given. The interest rate is 20% per year. At the conclusion of the useful life, the investment will be sold A C Investment cost $28,000 $55,000 $13,000 $28,000 $8,000 $40,000 Annual expenses Annual revenues $15,000 $23,000 $6,000 10 years $22,000 $32,000 13 $10,000 Salvage value Useful life 10 years 10 years A decision-maker can select one of these alternatives or...
Assume a mutually exclusive scenario. Compare three alternatives on the basis of their capitalized cost (CC) at i=10% per year, which is the best alternative in this scenario? • Alternative 1, AW = $87,500 and n = (forever) • Alternative 2, PW = -$895,000 and n = (forever) • Alternative 3, First cost (FC) of $900,000, annual operating savings of 3,000 per year, salvage = $200,000, and n = (forever) Alternative 2 Alternative 3 None of them Alternative 1 QUESTION...
Question 1 0.15 pts Of the following equations, which will allow you to solve for the ROR of this cash flow? Year Cash Flow $-15,000 O 1 $2,500 2 $5,000 $7,500 4 $10,000 15,000 2500(P/A, i, 5) +2500 (P/G, i, 5) 0 15,000 2500(P/A, i, 5)+2500 (P/G, i, 5) 15,000 2500(P/G, i*, 5) 0 150002500(P/G, i, 5) 15,000 2500(P/A, i", 4) +2500 (P/G, i", 4) 0 15,000 2500(P/A, i, 4)+2500 (P/G, i, 4) = Ln Question 2 0.3 pts Petra's...
Please help!! Table included!! Engineering economics
homework!!
Three mutually exclusive earth-moving pieces of equipment are being considered for several large building projects in India over the next five years. The estimated cash flows for each alternative are given below. The construction company's MARR is 12% per year. Which of the three alternatives, if any, should be adopted? Assume repeatability is appropriate for this comparison. Caterpillar Deere Case Capital investment $20,000 $26,000 $17,000 Net annual revenue $6,500 $10,000 $5,500 Salvage value...
dt Moving to another question will save this response. Question Question 12 15 points For alternatives shown n the table below you are trying to decide which alternative you should choose based on their capitalized costs use an interest rate of 10% per year Machine A Machine B First cost (AED) Ansual maintenance cost per year, AFD 5000 20,000 240,000 2,300 Periodic cost every 10 years,AED 10,000 Salvage cost 2000 Lide, years Match the closest correct answers for the below...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago