Question

Q1. An investor bought a land for $23,000 he paid S1,200 each year (END OF YEAR) for the first four years to plant olive trees in the land. Also, he invested S8,000 during the fourth year for building a fence around it. From fifth year through fifteenth year he will collect $550 each month. At the end of the fifteenth year the land will be sold for $33,000. 1. Evaluatethe IRR forthis project 2. Show the future worth of this project if MARR is 12%. Q2. A piece of production is to be replaced immediately. The economic estimates for the two best alternatives are shown below: Altematives Initial cost s15,000 566,00 Monthly Revenue $5,000 $1,000 Q2. A piece of production is to be replaced immediately. The economic estimates for the two best alternatives are shown below: Altematives Initial cost $15,000 566,00 Monthly Revenue $3,000 $1,000 scful Life 5 years 10 years Sahage value $10,000 $15,000 The MARR is 24% per year Illustrate which altenative is preferred based on repeatability assumption? u Show which alternative is preferred using co-terminated assumption?

Answer 1

andi $12.02 fourt eat ht mint el

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2 220006 2300012)s1200 x - 2.000 x 3-Y7g + 6600 x 20. 655ナ33000