

The rate is 2.75% 5. Copmare the following 2 altrernatives using the Net Equivalent Uniform Annual...
Compare the following 2 alternatives using the Net Equivalent Uniform Annual (NEUA) method and the given interest rate of 4.5% Draw the Cash Flow Diagram Alt. Construction cost $ Benefit ($/yr) Salvage $ Service Life (yrs) A 1,800,000 400,000 40,000 7 B 2,900,000 550,000 80,000 14
Compare the following 2 alternatives using the Net Present Worth (NPW) method – rate is 4.5% per year. Repeat the solution using the Net Equivalent Uniform Annual (NEUA) method. Which one is simpler? Draw all cash flow diagrams. Alt. Construction Cost Benefit Maintenance Service Life A $380,000 $240,000/yr. $10,000/yr. 9 yrs B $750,000 $270,000/yr. $20,000/yr. 18 yrs
6. Compre the following alternatives using the Net Equivalent Uniform Annual Worth method. Alt. Construction cost $ Life (yrs) A $30million 40 B $35million Infinite
Compare the following 2 alternatives using the Net Present Worth (NPS) method – rate is 3% per year. Draw all cash flow diagrams. Please show work using a formula. Alt. Construction Cost ($) Benefit ($/yr.) Service Life (yrs.) A 380,000 200,000 7 B 450,000 220,000 7
Find the equivalent uniform annual cost
3. Using an interest rate of 12%, find the equivalent miform annual cost for a piece of construction equipment that has an initial purchase cost o $30,000, an estiinat nomic life of 8 years, and an estimated salvage value of $10,000. Annual mainte- nance will anount to $600 per year and periodic overhauls costing $1.,000 each will occur at the end of the second, fourth, and sixth years.
3. Using an interest rate of...
Compare the following alterntives given a market rate of 5.45% per year and an inflation rate of 3% per year. Use first the B/C method to determine feasibility and then the incremental B/C method to determine the oprimum level of investment. Alt Construction Cost $ Annual Benefits $/yr Life yrs A 105,000 40,000 5 B 230,000 52,000 6 C 350,000 64,000 7 D 600,000 100,000 8
Compare the following alterntives given a market rate of 5.45% per year and an inflation rate of 3% per year. Use first the B/C method to determine feasibility and then the incremental B/C method to determine the oprimum level of investment. Alt Construction Cost $ Annual Benefits $/yr Life yrs A 105,000 40,000 5 B 230,000 52,000 6 C 350,000 64,000 7 D 600,000 100,000 8
a) determine which machine should be purchased, based on
equivalent uniform annual cost.
b) what would be the MACRS depreciation in the third year for
machine II?
11-44 A company is considering buying a new piece of machinery. A 10% interest rate will be used in the computations. Two models of the machine are available. sloboibos trolinis ob hoi Machine | Machine II Initial cost odos $100,000 le 25,000 $80,000 od 000. End-of-useful-life 20,000 salvage value, s Annual operating 18,000...
4. Compare the following altemtives given a market rate of 3.45% per year and an inflation rate of 3% per year. Use first the B/C method to determine feasibility and then the incremental B/C method to determine the oprimum level of investment. Life yrs Alt A Construction Costs Annual Benefits S/yr 105,000 40,000 230,000 52.000 350.000 64,000 600,000 100,000 6
5. Compare the following two alternatives by the IRR method, given MARR of 8%/year. Is the incement in cost form A to B justified? Alt. Construction cost | Benefits Styr | Salvage Service Life (yrs 510,000 145,000 10,000 775,000 155,000 20,000