None A company purchase a piece of manufacturing equipment for an additional income. The expected income is $3,500 per semester Its useful life is 9 years Expenses are estimated to be $500 semiannually. If the purchase price is $44,000 andthere is a salvage value of $4,500, what is the prospective rate of return (IRR) of this investment? The MARR is 10% compounded semiannuallyO a. IRR=3% semiannualO b. IRR=6% semiannualOc. IRR=12% semiannualOd. IRR=6.02% semiannual

let's analyze the answer choices:a. 3%: If the IRR is this low, the project might not be very…

Answered: A company purchase a piece of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A company purchase a piece of manufacturing equipment for an additional income. The expected income is $4.500 per semester. Its useful Me is 9 years Expenses are estimated to be $500 semiannually. If the purchase price is $44,000 and there is a salvage value of $4,500, what is the prospective rate of return (IRR) of this investment? The MARR is 10% compounded semiannually a IRR-6.02% semiannual Ob. IRR 12% semiannual OcIRR-623% semiannual Od. IRR-3% semiannual
Q) A civil engineer planning for her retirement places 11% of her salary each year into a high-technology stock fund. If her salary this year (end of year 1) is $200,000 and she expects her salary to increase by 4% each year, what will be th future worth of her retirement fund after 14 years provided it earns 8% per year? Solve it correctly. Typed or handwriting with concept use. Not solve in excel works.
None
Y6
Q-For I= 15%, Solve for the Equivalent Uniform Annual Cost (EUAC) in periods 1 to 5, Provide any additional or modified cash flow diagrams necessary for your solution and show all work. All values are csot except the $4000 salvage, which is a benefit. The cash flow diagram for the question provided in the picture below.
this are homework questions, pls explain the correct answer :
Maintenance cost for a small bridge with an expected 60-year life are estimated to be $1,000 each year for the first 5 years, followed by a $ 10,000 expenditure in the 15th year and a $ 10,000 expenditure in year thirty. At 10% interest rate, what is the equivalent uniform annual maintenance cost over the entire 60 - year period? Show solutions
Major overhaul expenses of $5,000 each are anticipated for a large piece of earthmoving equipment. The expenses will occur at EOY four and will continue every three years thereafter up to and including year 13. The interest rate is 12% per year. Solve, a. Draw a cash-flow diagram. b. What is the present equivalent of the overhaul expenses at time 0? c. What is the annual equivalent expense during only years 5–13?
Hand written solutions are strictly prohibited.
Please find PW (present worth) for all the cash flow diagrams in the attached picture below: FOR PART 3
QUESTION 2 For the given cash flow, if B= $3,400 , the future value, Fis closest to: F=? i= 12% 3 5 22 23 24 25 S500 S1000 $1500 B S10,500 Arithmatic Gradient $11,000
Complete the following analysis of cost alternatives and select the preferred alternative. The study period is 10 years and the MARR = 10% per year. "Do Nothing" is not an option. A B $15,000 $16,100 240 290 1,000 1,250 -$41,731 - $45,131 Capital investment Annual costs Market value at EOY 10 FW (10%) Click the icon to view the interest and annuity table for discrete compounding when i = 10% per year. The FW of the alternative C is $. (Round to the nearest dollar.) Select the preferred alternative. Choose the correct answer below. OA. Alternative C OB. Alternative A OC. Alternative B O D. Alternative D D $17,900 110 1,950 ??? - $46,231 с $12,500 450 1,800

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