A company is considering installing solar panels ona roof. The initial installation will cost $30,000, butit will save $260 in electricity each month and last20 years. If MARR = 0.5%, what is the discountedpayback period of the solar panels?

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Economics
A transit system is considering buying 6 more buses to provide better service. It will cost $100,000 for buying a new bus and $15,000 per year for maintenance and operation for the following 8 years. If the city’s MARR is 8%, what is the equivalent uniform annual cost of this project? Assume the bus has no value at the end of 8 years.
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)
Q.30) A $100,000 investment is make over a 10-years period. A return of $23,000 occurs at the end of the first year. Each successive year yields a return that is $2,000 les than the pervious year's return. If the money is worth 8%, what is the equivalent present worth for the investment? What is the equivalent annual worth for the investment? What is the equivalent future worth for the investment?
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Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The MARR is 4% per year. Capital investment Annual expenses Useful life Market value at end of useful life Lead Acid $7,000 $2,250 The PW of the Lead Acid is $ The PW of the Lithium Ion is $ 6 years $0 Lithium Ion $13,000 $2,300 Click the icon to view the interest and annuity table for discrete compounding when i = 4% per year. Lead Acid O Lithium lon 9 years $2,600 (a) Determine which alternative should be selected based on the PW method. Assume repeatability and use a study period of 18 years. (Round to the nearest dollar.) (Round to the nearest dollar.) Which alternative should be selected? Choose the correct answer below. (b) Determine which alternative should be selected based on the AW method, also assuming repeatability. The AW of the Lead Acid is $. (Round to the nearest dollar.) The AW of the Lithium Ion is $. (Round to the nearest dollar.) Which alternative should be selected?…
Ronald McDonald decides to install a fuel storage system for his farm that will save him anestimated 6.5 cents/gallon on his fuel cost. He uses an estimated 20,000 gallons/year on his farm.Initial cost of the system is $10,000 and the annual maintenance the first year is $25 and increasesby $25 each year thereafter. After a period of 10 years the estimated salvage is $3,000. If moneyis worth 12%, is it a wise investment?
Answer all, please A man decides to run a hot dog stand as a side hobby. He makes an initial investment of $1,264 which will produce monthly revenues of $896. If the hot dog stand is run for 13 months, what is the net present value at 1% monthly interest? Round your answer to the nearest dollar. If two alternatives have the same lifetime of 7 years, what would be the minimum length of the analysis period assuming that both alternatives are used for their lifetime? A piece of equipment has annual benefits of $142, but after the first year the revenue increases by $122 each year. Determine the net present worth of the equipment if the machine operates for 17 years and the annual interest rate is 4%. Round to the nearest dollar.
Determine the value of (F/P,35%,15)
7. You and your wife each contribute $500 per month into your 401(K) plan starting today. You only make these contributions for a period of 10 years, each year increasing the contribution by 3%. If you are 25 now, how much will your account be worth when you retire at age 65? The rate of return expected is 7%
None
10

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A company is considering installing solar panels on a roof. The initial installation will cost $30,000, but it will save $260 in electricity each month and last 20 years. If MARR = 0.5%, what is the discounted payback period of the solar panels?