8-14 The following four mutually exclusive alternativesA have no salvage value after 10 years.ABсD$7500 $5000 $5000 $85001600 1200 1000 1700Computed rate of return 16.8% 20.2% 15.1% 15.1%First costUniform annual benefit(a) Construct a choice table for interest rates from0% to 100%.(b) Using 8% for the MARR, which alternativeshould be selected?

8-14 The following four mutually exclusive alternatives A have no salvage value after 10 years. A B D First cost $7500 $5000 $5000 $8500 Uniform annual benefit 1600 1200 1000 1700 Computed rate of return 16.8% 20.2% 15.1% 15.1% (a) Construct a choice table for interest rates from 0% to 100%. (b) Using 8% for the MARR, which alternative should be selected?

8-14 The following four mutually exclusive alternatives A have no salvage value after 10 years. A B D First cost $7500 $5000 $5000 $8500 Uniform annual benefit 1600 1200 1000 1700 Computed rate of return 16.8% 20.2% 15.1% 15.1% (a) Construct a choice table for interest rates from 0% to 100%. (b) Using 8% for the MARR, which alternative should be selected?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Multiple Alternatives 8-12 Consider the following alternatives: Initial cost $300 $600 $200 35 981 Uniform annual benefits 41 Each alternative has a 10-year useful life and no salvage value. (a) Construct a choice table for interest rates from 0% to 100%. (b) If the MARR is 8%, which alternative should be selected?
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8-23 Three mutually exclusive projects are being considered:
cost maintenance life a $3000 $100/year 5 years $250 after 5 year b %14000 $80/year 15 years $600 after 15 year salvage interest= 5% need the best option using present worth and future worth with and without salvage value.
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The following three mutually exclusive alternatives have a 9-year life and no salvage value. C $400 A Initial Cost $500 $300 Uniform annual benefit 95 50 80 a) The firm wants a 9% rate of return. Which alternative should be selected? b) Construct a choice table for interest rates from 0% to 100%.
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Q1/a-A project has the following costs and benefits. What is the payback period? Costs (CU) Benefits (CU) year 0 1 2 0 1400 500 0 300 400 300 in each year 0 3-10 year b-Find the resent worth for a factory that has the cash flow as shown in the figure bellow assuming that 10%. 6000CU/year 0 10000CU 1 Investment (CU) Net cash flow (CU/year) Salvage value (CU) Life (year) 2 5000 CU/year 3 4 5 6 Alternative 1 14000 5000 3000 5 789 Q2: A) A contractor is planning to purchase a new bulldozer that cost (6 *10' CU). Calculate the schedule of depreciation and book value at the end of each year for the bulldozer's useful life (6 years) if you know that the salvage value is (300 000CU). B) Find the Present Worth of a future sum of 25 000CU for the period of (7 years), if the interest rate is 10% for the first three years and 2% per month for the years from 4 to 7? Q3: a company owner wants to choose one of two alternatives shown in the table, if the interest rate was 10% and the cash flow is as…
Hh.207.
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QZY, Inc. is evaluating new widget machines offered by three companies. The chosen machine will be used for 3 years. a) Construct a choice table for interest rates from 0% to 100%. B) MARR = 15%. From which company if any should you buy the widget machine? Use rate of return analysis. A B C First cost $15,000 $25,000 $20,000 Maintenance and operating 1,600 400 900 Annual benefits 8,000 13,000 9,000 Salvage value 3,000 6,000 4,500 a) Construct a choice table for interest rates from 0% to 100% b) MARR = 15%. From which company if any should you buy the widget machine? Use rate of return analysis