PeriodProject Cash FlowsnABCD0- $6,000-$2,500$4,800-$4,1001$5,800-$4,400- $6,000$1,0002$12,400$7,000$2,000$5,0003$8,200$3,000$4,000$6,000Determine payback period, NPS, NFW of the projetcs A,B,C and Dwith MARR of 15%

Net Present Value : It is the difference between the present value of all cash inflows and cash…

Answered: 1 2 $5,800 -$4,400 - $6,000 $1,000…

1 2 $5,800 -$4,400 - $6,000 $1,000 $12,400 $7,000 $2,000 $5,000 3 $8,200 $3,000 $4,000 $6,000 Determine payback period, NPS, NFW of the projetcs A,B,C and D with MARR of 15% 23

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Period
Project Cash Flows
n
A
B
C
D
0
- $6,000
-$2,500
$4,800
-$4,100
1
$5,800
-$4,400
- $6,000
$1,000
2
$12,400
$7,000
$2,000
$5,000
3
$8,200
$3,000
$4,000
$6,000
Determine payback period, NPS, NFW of the projetcs A,B,C and D
with MARR of 15%

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A project has an initial cost of $50 000, net annual cash inflows of $20 000, and a $2 000 salvage value after five years. Which of the following gives the project's approximate external rate of return (i*) if MARR = 10%? -50 000(P/F, i*, 5) + 20 000(P/A, i*, 5) + 2 000(F/P, i*, 5) = 0 -50 000(F/P, i*, 5) + 20 000(F/A, i*, 5) + 2 000 = 0 -50 000(F/P, i*, 5) + 20 000(F/A, 10, 5) + 2 000 = 0 -50 000(F/P, i*, 5) + 20 000(P/A, i*, 5) + 2 000 = 0
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