A plant is interested in acquiring a machine to produce a new product. Three altematives, A. B. and C. are being considered. Which alternative should be recommended if the plant's MARR is 12% per year using (a) the IRR method and (b) the annual worth method? m Click the icon to view the description of the atematives. More info E Click the icon to view the interest and annuity table for discrete compounding when the M Discrete Compounding: /= 12% Single Payment Uniform Series Uniform Gradient The IRR AC - A = S%. (Round to one decimal place.) Gradient Compound Amount Сompound Аmount Sinking Fund Capital Recovery Factor Gradient Present Worth Factor Uniform Series Present Present Worth Factor Factor To Find P which alternative shouid be selected using the IRR method? Chocse the comrect answer below Factor Worth Factor Factor Factor To Find F To Find P Given G To Find F To Find P Given F To Find A To Find A To Find A O A. Alternative C Given P Given A Given A Given F Given P Given G O B. Allornalivo A FP PIF FIA PIA AIF A/P PIG A/G 1.1200 0.8929 1.0000 0.8929 1.0000 1.1200 0.0000 0.0000 OC. Allernalive B 2 12544 0.7972 2.1200 1.6901 04717 0.5917 0.7972 04717 0.4163 0.3202 1.4049 0.7118 3.3744 2.4018 0.2963 2.2208 0.9246 b. The A, is s 2525 (Round to the nearest collar.) 0 2002 4 1.5735 0.6355 4.7793 1.3569 3.0373 3.0018 4.1273 6.3970 5 1.7623 0.5674 6.3528 0.1574 0.2774 1.7746 The AWg is S-348. (Round to the ncaresi dollar.) 6 1.9738 0.5066 8.1152 4.1114 0.1232 02432 2.1720 7 2.2107 0.4523 10.0890 4.5638 4 9676 0.0001 02101 11.6443 2.5515 The AW is $ 821 - (Round to the nearest dolar.) O DR13 O 2013 0 4039 0.3606 24760 12.2997 14 4714 29131 Which alternative shouid be selected using the annual worth method? Choose the correct ans 2.7731 14.7757 5.3282 0.0677 0.1877 17.3563 3.2574 10 3.1058 0.3220 17.5487 5.6502 0.0570 0.1770 20.2541 3.5847 OA. Alternative C O B. Alternative A OC. Alternalive B Print Done

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A4 Please complete the things I have not filled out. I believe the best way to complete this is using excel. Also make sure to do the part that says to perform the incremental IRR analysis for the remaning alternatives (The part that has The IRR delta (C - A = ?? %). Thank You!
A plant is interested in acquiring a machine to produce a new product. Three altematives, A. B. and C. are being oonsidered. Which alternative should be recommended if the plant's MARRis 12% per year using (a) the IRR method and (b) the annual worth
method?
E Click the icon to view the description of the alternatives.
- X
More info
E Click the icon to view the interest and annuity table for discrete compounding when the M
Discrete Compounding: =12%
Single Payment
Uniform Series
Uniform Gradlent
The IRR AC - A )= %. (Round to one decimal place.)
Gradlent
Сompound
Аmount
Uniform
Compound
Аmount
Sinking
Fund
Capital
Recovery
Factor
Gradient
Which alternative should be selected using the IRR method? Choose the correct answer below
Present
Present
Present
Series
Factor
To Find F
Worth Factor
Factor
Worth Factor
Factor
Worth Factor
Factor
To Find A
Given G
To Find P
To Find F
To Find P
To Find A
Given F
To Find A
To Find P
O A. Alternative C
Given P
Given F
Given A
Given A
Given P
Given G
O B. Allernalive A
N
F/P
PIE
FIA
PIA
A/F
A/P
PIG
A/G
OC. Allernalive B
1
1.1200
0.8929
1.0000
0.8929
1.0000
1.1200
0.0000
0.0000
1.2544
0.7972
2.1200
1.6901
0.4717
0.5917
0.7972
0.4717
3
1.4049
0.7118
3.3744
2.4018
0.2963
0.4163
2.2208
0.924E
b. The AW, is s 2525 (Round to tne nearest collar.)
4
1.5735
0.6355
4.7793
3.0373
0.2002
0.3202
4.1273
1.3569
5
1.7623
0.5674
6.3528
3.6048
0.1574
0.2774
6.3970
1.7746
The AW, is s -348. (Round to the nearesl doller.)
6
1.9738
0.5066
8.1152
4.1114
0.1232
0.2432
8.9302
2.1720
0.2101
0 2013
7
2.2107
0.4523
10.0890
4.5638
0.0001
11.6443
2.5515
The AW, is $ 821. (Round to the nearest dollar.)
2.4760
0.4039
12.2997
4.9676
O D813
14.4714
2.9131
Which alternative should be selected using the annual worth method? Choose the oorrect ans
9
2.7731
0.3600
14.7757
5.3282
0.0677
0.1877
17.3563
3.2674
10
3.1068
0.3220
17.5487
5.6502
0.0570
0.1770
20.2541
3.5847
O A. Alternative C
O B. Alternative A
OC. Alternative B
Print
Done
Transcribed Image Text:A plant is interested in acquiring a machine to produce a new product. Three altematives, A. B. and C. are being oonsidered. Which alternative should be recommended if the plant's MARRis 12% per year using (a) the IRR method and (b) the annual worth method? E Click the icon to view the description of the alternatives. - X More info E Click the icon to view the interest and annuity table for discrete compounding when the M Discrete Compounding: =12% Single Payment Uniform Series Uniform Gradlent The IRR AC - A )= %. (Round to one decimal place.) Gradlent Сompound Аmount Uniform Compound Аmount Sinking Fund Capital Recovery Factor Gradient Which alternative should be selected using the IRR method? Choose the correct answer below Present Present Present Series Factor To Find F Worth Factor Factor Worth Factor Factor Worth Factor Factor To Find A Given G To Find P To Find F To Find P To Find A Given F To Find A To Find P O A. Alternative C Given P Given F Given A Given A Given P Given G O B. Allernalive A N F/P PIE FIA PIA A/F A/P PIG A/G OC. Allernalive B 1 1.1200 0.8929 1.0000 0.8929 1.0000 1.1200 0.0000 0.0000 1.2544 0.7972 2.1200 1.6901 0.4717 0.5917 0.7972 0.4717 3 1.4049 0.7118 3.3744 2.4018 0.2963 0.4163 2.2208 0.924E b. The AW, is s 2525 (Round to tne nearest collar.) 4 1.5735 0.6355 4.7793 3.0373 0.2002 0.3202 4.1273 1.3569 5 1.7623 0.5674 6.3528 3.6048 0.1574 0.2774 6.3970 1.7746 The AW, is s -348. (Round to the nearesl doller.) 6 1.9738 0.5066 8.1152 4.1114 0.1232 0.2432 8.9302 2.1720 0.2101 0 2013 7 2.2107 0.4523 10.0890 4.5638 0.0001 11.6443 2.5515 The AW, is $ 821. (Round to the nearest dollar.) 2.4760 0.4039 12.2997 4.9676 O D813 14.4714 2.9131 Which alternative should be selected using the annual worth method? Choose the oorrect ans 9 2.7731 0.3600 14.7757 5.3282 0.0677 0.1877 17.3563 3.2674 10 3.1068 0.3220 17.5487 5.6502 0.0570 0.1770 20.2541 3.5847 O A. Alternative C O B. Alternative A OC. Alternative B Print Done
A plant is interested in acquiring a machine to produce a new product. Three altematives, A. B. and C, are being considered. Which altermative should be recommended if the plant's MARR is 12% per year using (a) the IRR method and (b) the annual worth
method?
E Click the icon lo view the descriplion of the allernalives.
E Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per ycar.
a. The IRR, is %. (Round to crie decirmal placs.)
More info
The IRR, is %. (Round lo one decimal place.)
The IRR- is %. (Round lo one decirrial place.)
Which allernative will you drop based on IRR values? Choose the correct answer below.
B
Investment Cost
S31,000
$20,800
$10,000
$1,000
S16,000
O A. Alurnalive C
Annual cash flows
59,200
S10,900
Salvage value
Life in years
O B. Alternative B
$5,000
s9,000
3
OC. Alternative A
O D. None cr the above
Perform the incremental IRRAnalysis for the remaining aitematives.
Print
Done
The IRR A(C - A )- %. (Round to one decimal place.)
Which alternative should be selected using the IRR method? Chocse the correct answer below.
O A. Alternative C
Transcribed Image Text:A plant is interested in acquiring a machine to produce a new product. Three altematives, A. B. and C, are being considered. Which altermative should be recommended if the plant's MARR is 12% per year using (a) the IRR method and (b) the annual worth method? E Click the icon lo view the descriplion of the allernalives. E Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per ycar. a. The IRR, is %. (Round to crie decirmal placs.) More info The IRR, is %. (Round lo one decimal place.) The IRR- is %. (Round lo one decirrial place.) Which allernative will you drop based on IRR values? Choose the correct answer below. B Investment Cost S31,000 $20,800 $10,000 $1,000 S16,000 O A. Alurnalive C Annual cash flows 59,200 S10,900 Salvage value Life in years O B. Alternative B $5,000 s9,000 3 OC. Alternative A O D. None cr the above Perform the incremental IRRAnalysis for the remaining aitematives. Print Done The IRR A(C - A )- %. (Round to one decimal place.) Which alternative should be selected using the IRR method? Chocse the correct answer below. O A. Alternative C
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