Multiple Choice$−590,000.$−625,000.$−850,000.$−734,000 AB-90,000-750,000Below are the cash flows for alternates A and B at an interest rate of 10% per year.AlternativeFirst cost, $AOC, $/year-50,000-10,000Salvage value, $8,000 2,000,000Life, years5The capitalized cost of alternative B is nearest

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Answered: A B -90,000-750,000 Below are the cash…

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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6
Street lighting fixtures and their sodium vapor bulbs for a two-block area of a large city need to be installed at a first cost (investment cost) of $130,000. Annual maintenance expenses are expected to be$6,500for the first8years and$8,500 each year thereafter upto 25years. With an interest rate of 9% per year, what is the present worth cost of this project? Choose the closest answer below. A) $202,422 B $238,597 C) $249,468 D) $277,339
A company that manufactures magnetic membrane switches is investigating two production options that have the estimated cash flows shown ($1 million units). Which one should be selected on the basis of a present worth analysis at 10% per year? In-house Contract First Cost, $ -30 Annual Cost, $ per year -5 -2 Annual Income, $ per year 14 3.1 Salvage Value, $ 2 Life. years 5 Approximately, what is the value of (P) if A-340, n=9 years, and i= 8% per year? O a. 2847 O b. 2549 O c. 1763 O d. 2124
Identify the net cash flows shown below as either conventional or nonconventional. Year 0 1 2 3 4 5 (a) 400 300 200 100 0 −100 (b) −50 −50 −50 40 40 40 (c) −1000 200 300 400 300 200 (d) −6000 −500 −500 −750 10,000 −2000 (e) 50 −10 50 50 50 50
Economic Study Methods
Example A company is considering two types of equipment for its manufacturing plant. Pertinent data are as follows: Freeze Type A Type B First cost P200,000 P300,000 Annual Operating Cost P32,000 P24,000 D Annual Labor Cost P50,000 P32,000 Insurance and Property Taxes 3% 3% Payroll Taxes 4% 4% Estimated Life TO 10 If the minimum required rate of return is 15%, which equipment should be selected?
Using Incremental with EUAW analysis find the best alternative, MARR = %10. should use Excel and show your equations seperately, see below example: [A Benefit - [IC (A/P, i%, n) - Salvage (A/F, i, n)] + A Cost+ G Cost (A/G, i, n)] Data B C A First Cost $2,300,000 $2,780,000 $2,540,000 Salvage Value $82,000 $118,000 $97,000 Annual Benefit $580,000 $670,000 $650,000 M&O $65,000 $78,000 $71,000 M&O Gradient $11,000 $15,000 $12,500 Useful Life, Years 9 9 9 You - ZOOM
For the net cash flow and cumulative cash flows shown, the value of x is nearest: (a) $−8,000 (b) $−16,000 (c) $16,000 (d) $41,000 Year 1 2 3 4 5 Net Cash Flow, $ +13,000 −29,000 −25,000 50,000 x CCF, $ +13,000 −16,000 −41,000 +9000 +1000
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
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Which alternative in the table below should be selected when the MRR = 6% per year? The life of each Kalternative is 10 years. Increment Considered A Investment cost A (Annual Revenues less. Costs) IRR on A Investment Cost A(A-DN) $800 $154 14.1% The IRR on A(C-B) is %. (Round to one decimal place.) A(B-A) $700 $114 10.0% A(C-B) $1,100 $170 ? A(D-C) $1,300 $130 2

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A B -90,000-750,000 Below are the cash flows for alternates A and B at an interest rate of 10% per year. Alternative First cost, $ AOC, $/year -50,000-10,000 Salvage value, $ 8,000 2,000,000 Life, years 5 The capitalized cost of alternative B is nearest