6-31. Compare two renewable energy projects using PWand FW methods at a 7% interest rate: Project A costs$250,000 with $65,000 returns annually for six years, andProject B costs $220,000 with $60,000 returns annually forseven years. (6.5)

To compare two renewable energy projects, we applied both the Present Worth (PW) and Future Worth…

Answered: 6-31. Compare two renewable energy…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Retainer 0 1 Expenses 2 Revenue N Years How much can you afford to spend on the first year expenses on a project with the above cash flow?, given; Your MARR is 10.00%, the client has given you a retainer of $5,700, annual revenues are expected to be $2,750, the external rate of return required for this project is 19.5% and the entire project will last 8 years. (Round your answer to the nearest penny)
10
Sarah wants to purchase a new car five years from now. She expects that at the time of purchase the price for a passenger vehicle will be $55,530. If the bank interest rate is 5% per annum, how much will she be required to put into her account NOW to ensure she has enough cash to purchase the vehicle? a $90,453 b $34,090 c $43,509 d $70,873
A continuous improvement team has helped to save $20,000 for the company on a process that will not be changed for the next 10 years. If the team has spent $50,000 on the improvement project, the net present worth (NPW) of savings on this improvement project is $150,000 at a MARR of 5%. O True O False
On August 6, 2021, Nike purchased new cash registers for their stores for $105,000 total. They will realize a $9,700 profit on the first Friday of every month ( Hint: You will need a calendar) starting on 9/3/2021 for an entire year (ending on July 1, 2022). What is the rate of return of this project? (X.X%)
Engineering Econ HW7 Q3
MARR 20% EOY Cash Flow 0 $(70,000.00) 1 $ 20,000.00 2 $ 19,000.00 3 $ 18,000.00 4 $ 17,000.00 5 $ 16,000.00 6 $ 15,000.00 7 $ 14,000.00 8 $ 13,000.00 9 $ 12,000.00 10 $ 11,000.00 11 $ 10,000.00 12 $ 9,000.00 13 $ 8,000.00 14 $ 7,000.00 15 $ 6,000.00 16 $ 5,000.00 17 $ 4,000.00 18 $ 3,000.00 19 $ 2,000.00 20 $ 1,000.00 Plot a graph of FW versus MARR, where MARR varies from 0 percent to 50 percent by 1 percent increments.FW should be on the y-axis and MARR on the x-axis. How do you find FW? Please show all steps and formulas used in excel format. Thank you!
MARR 20% EOY Cash Flow 0 $(70,000.00) 1 $ 20,000.00 2 $ 19,000.00 3 $ 18,000.00 4 $ 17,000.00 5 $ 16,000.00 6 $ 15,000.00 7 $ 14,000.00 8 $ 13,000.00 9 $ 12,000.00 10 $ 11,000.00 11 $ 10,000.00 12 $ 9,000.00 13 $ 8,000.00 14 $ 7,000.00 15 $ 6,000.00 16 $ 5,000.00 17 $ 4,000.00 18 $ 3,000.00 19 $ 2,000.00 20 $ 1,000.00 Plot a graph of FW versus MARR, where MARR varies from 0 percent to 50 percent by 1 percent increments.FW should be on the y-axis and MARR on the x-axis.
6-5. A company is comparing two heating options for a new research building with an 8% annual interest rate. Which option is more cost-effective? (6.4) Gas Heating: Initial cost of $425,000, $2,500 yearly maintenance for 20 years, and $8,000 yearly energy cost rising 5% annually. Geothermal Heating: Initial cost of $300,000, no energy cost, but $10,000 yearly maintenance for 20 years. k
Find the value of P in the following cash flow. i-5% per annum. ▲$1500 0 1 2 3 4 5 6 7 8 A₁-$1000 A₂-$800 interest rate (IR): 5% interest rate (IR): 5% n n A/F 1 1 1.0000 2 2 0.4878 3 3 0.3172 4 4 0.2320 5 5 0.1810 6 0.1470 7 0.1228 0.1047 9 0.0907 10 0.0795 6 7 8 9 10 single payment FIP PIF 1.0500 0.9524 1.1025 0.9070 1.1576 0.8638 1.2155 0.8227 1.2763 0.7835 1.3401 0.7462 1.4071 0.7107 1.4775 0.6768 1.5513 0.6446 1.6289 0.6139 uniform payment series A/P FIA 1.0500 1.0000 0.5378 2.0500 0.3672 3.1525 0.2820 4.3101 0.2310 5.5256 0.1970 6.8019 0.1728 8.1420 0.1547 9.5491 0.1407 11.0266 0.1295 12.5779 PIA 0.9524 1.8594 2.7232 3.5460 4.3295 5.0757 5.7864 6.4632 7.1078 7.7217
a. The PW of the Gas Heating Option is b. The PW of the Geothermal Heating Option is c. The lower cost alternative is the geothermal heating option
None

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

6-31. Compare two renewable energy projects using PW and FW methods at a 7% interest rate: Project A costs $250,000 with $65,000 returns annually for six years, and Project B costs $220,000 with $60,000 returns annually for seven years. (6.5)