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based on net worth analysis, which of the following project is acceptable
![a) P[N2 = 4]
b) P N2 < 1
c) P[5 < N, < 8]
d) HN2
e) ON2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ea15aad-ce09-44c1-ae1a-fd69c581a5af%2F53a40f88-40a0-4d86-baa8-94e07e82a6bc%2F9b6tmpm_processed.png&w=3840&q=75)
The correct answer is;
c) P[5<=N2<8]
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- The Gadomski School of Engineering is considering the purchase of a new plasma cutter for the St. Benilde Laboratory Building. Economic data for three potential cutters are shown in the table below. Using a MARR of 8% per year, determine which plasma cutter should be selected. Compute all relevant internal rate of return values to two decimal places. Show all of your work! Hypertherm $1,875 $900 $375 Manufacturer Miller Tomahawk $2,850 $1,000 $325 12 $1,200 $450 $400 4 Initial Cost Salvage Value Annual Cost Life, years 6.The best model to analyze the project financially is cash flow. Select one: True FalseProject A1 Project A2 Investment $1,100,000 $1,600,000 Required at n=0 $500,000 $370,000 $300,000 $250,000 $200,000 $140,000 $200,000 $400,000 $320,000 $550,000 $500,000 $240,000 1 2 3 4 5 6.
- 5,6,7 search Saved Help S GETwo mutually exclusive design alternatives are being considered. The estimated cash flows for each alternative are given below. The MARR is 12% per year. The decision-maker can select one of these alternatives or decide to select none of them. Make a recommendation based on the following methods. Design Y a. Based on PW method, Design is more economical. b. The modified B/C ratio of Design Y is The modified B/C ration of Design Z is c. The incremental B/C ratio is (Round to two decimal places) Therefore, based on the B/C ratio method, Design Investment cost Annual revenue Annual cost Useful life Salvage value (Round to two decimal places) (Round to two decimal places) d. The discounted payback period of Design Y is The discounted payback period of Design Z is Net PW is is more economical years (Round to one decimal place) years (Round to one decimal place) $140,000 $51,725 $9,672 15 years $14,700 $149,103 Design Z $275,000 $84,946 $18,059 15 years $33,000 $186,587 Therefore, based on…Techniques of Capital Budgeting refer to the criteria used to evaluate the project. These techniques can be broadly classified into two categories, one which is non-time adjusted and the other which is suitably adjusted for time. Do a comparative analysis of these two categories giving suitable examples to corroborate your claims.
- Consider the following mutually exclusive alternatives: Alternative A Alternative B Capital investment $473,000 $1,114,000 Net annual receipts $104,100 $235,000 Both alternatives have a useful life of 20 years and no market value at that time. The MARR is 20 % per year. Determine the annual worth (AW) of the most profitable course of action. (Enter your answer as a number without the dollar sign.)Five mutually exclusive alternatives are being considered for providing a sewage- treatment facility. The annual equivalent costs and estimated benefits of the alternatives are as follows: Alternative E Annual Equivalent (in thousands) Cost $1,050 Benefits $1,110 900 $1,810 1,230 $1,390 1,350 $1,500 990 $1,140 Which plan, if any, should be adopted if the Sewage Authority wishes to invest if, and only if, the B-C ratio is at least 1.0.?Which of the following interpretations would be best for the scenario analysis results shown below? Worst- case PW (18%) -$650,000 IRR 2.10% Most- likely case Best-case $58,000 $2,660,000 33% 14.60% a. Since the most-likely case has a PW <0, the project should be abandoned immediately b. Since the worst-case has a negative present worth, this project must be rejected. c. Since the average of the three cases is a positive present worth, the project is acceptable. d. Because only one of the scenarios shows the project as profitable, the project should be considered very risky, and, if accepted, should be subject to greater scrutiny in its planning and forecasting.
