Based on the incremental return shown and thecompany's MARR of 16% per year, the alternativethat should be selected is _____The project initial costs are such that A < C < B.Comparison Rate of Return, %(A-DN)(B-DN)(C-DN)(B-A)(C-A)(B-C)Alternative CDo nothingAlternative BAlternative ACannot be determined.172519141812

The objective of the question is to determine which alternative should be selected based on the…

Answered: Based on the incremental return shown…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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ChemCo Enterprises is the manufacturer of Ultra-Dry, a hydrophobic coating that will waterproofanything. Over a 5 year period, the costs associated with the pilot test product line were as follows: first cost of $43,000 and annual costs of $18,000. Annual revenue was $40,000 and used equipment was salvaged for $4,000. What rate of return did the company make on the product?
The B&E Cooling Technology Company, a maker of automobile air conditioners, faces an impending deadline to phase out the traditional chilling technique, which uses chlorofluorocarbon (CFCs), a family of refrigerant chemicals believed to attack the earth's protective ozone layer. B&E has been pursuing other means of cooling and refrigeration. As a near-term solution, its engineers recommend a cooling technology known as absorption chiller, which uses plain water as a refrigerant and semiconductors that cool down when charged with electricity. The company plans to retrofit the plant now to adopt the absorption chiller and continuing to be a market leader in cooling technology. B&E is considering three options: The financial data for the three options are as follows: Item Initial investment System life Salvage value Annual revenue Annual operations and maintenance costs Option 1 $6 Million 8 years $1 Million $9 Million $6 Million If B&E's MARR is 15% and using equivalent annual worth…
The capitalized cost (CC) of the given project whose Cash Flow diagram is given below is closest to:
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For each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear manual solutions to the problem; (c) highlight the final answer (only the final answer as required by the problem) by enclosing it within a box. An equipment has a first cost of $200,000, an annual operating cost of $50,000 and a salvage value of 25% of the first cost after 5 years; these estimates being in future dollars. Determine the present worth, assuming an interest rate of 10% and an average inflation rate of 4%.
The capitalized cost (CC) of the given project whose Cash Flow diagram is given below is closest to: = 10% per year 5 6 7 8 9 10 11 2 3 A= $2,000 PO=S30,000 C-55000 (Recurring every 5 y ears) C=55000 (Recurring every 5 years) Captalized Cost= ?
Give typing answer with explanation and conclusion
The General Hospital is evaluating new office equipment offered by three companies. Cost Annual benefit End of useful life salvage value Useful life (yrs) Select one: 9.5% 8.5% 7.5% Company A $500 $130 $0 10.5% 5 The incremental rate of return between Company B and Company C is close to Company B $600 $115 $250 5 Company C $700 $100 $180 10
Answer please and take like
The cost of the extending a certain road at Yellowstone National Park is $1.7 million. Resurfacing and other maintenance are expected to cost $350,000 every 3 years with an interest rate of 6% per year. a) What is the Annual Worth based capitalized cost of the road? b) How will the answer (a) change if its Salvage is expected to be $3 million at the end of its useful Life?
1. The annual worth for years 1 through infinity of $75,000 now, $25,000 per year in years 1 through 15 and S40,000 per year in years 16 through infinity at a 10% interest per year is closest to: (a) $27,500 (b) $36,000 (c) $44,000 (d) $ 19,500 1. For the estimates in table below, calculate the equivalent annual cost of the project: First Cost, $ -950,000 Replacement Cost, year 2 AOC, $/ year Salvage value, $ -450,000 -600,000 175,000 Life, years 4 Interst Rate % 10
not use ai please

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