Multiple ChoiceОCCB = [-750,000(0.10) – 10,000]/0.10.-О CCB=-750,000 - 10,000/0.10 + 2,000,000(0.10).ОCCB=-750,000 – 10,000/0.10 + 2,000,000/(1+0.10)∞.ОCCB=-750,000 - 10,000/0.10. Below are the cash flows for alternates A and B at an interest rate of 10% per year.AlternativeFirst cost, $AOC, $/yearAB-90,000-750,000-50,000-10,000Salvage value, $8,0002,000,0005Life, yearsAll of the following equations for calculating the capitalized cost of alternative B are correct, except

To determine the correct answer, let's analyze the capitalized cost formula for Alternative B. Given…

Answered: Multiple Choice О CCB = [-750,000(0.10)…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The survey firm of Layer, Anderson, and Pope (MAP) LLP is considering the purchase of a pieceof new GPS equipment. Data concerning the alternative under consideration are presented below.First Cost $28,000Annual Income 7,000Annual Costs 2,500Recalibration at end of Year 4 4,000Salvage Value 2,800If the equipment has a life of eight years and MAP’s minimum attractive rate of return (MARR) is5%, what is the annual worth of the equipment?
Compare three alternatives on the basis of their capitalized costs at /= 9% per year and select the best alternative. Alternative E F G $-300,000 $-26,000 $84,000 4 First Cost AOC, per Year Salvage Value Life, Years $-90,000 $-65,000 $34,000 2 The capitalized cost of alternative E is $ The best alternative is (Click to select) alternative F is $ $-1,005,000 $-2,000 $900,000 and alternative G is $
please answer all with complete solution and draw the cash flow diagram,,, do not use excel please. thank you....
A company that manufactures clear PVC pipes is investigating the production options of batch and continuous processing. Estimated cash flows are: Batch Process First cost ($) Annual cost ($ per year) Salvage value, any year, Continuous -69,000 -48,000 -140,000 -31,000 20,000 25,000 Life (years) 3-10 The chief operating officer (COO) has asked you to determine if the batch option, using an interest rate of 15% per year, would ever have an annual worth lower than that of the continuous flow system. The continuous flow process was previously determined to have Its lowest cost over a 5-year life cycle, but the batch process can be used from 3 to 10 years. If selecting the batch process is sensitive to its useful life, what is the minimum life that makes It more attractive? The batch system will be less expensive than the continuous flow if it lasts over years.
Wall’s Pharmacy will have to sell a new product that has an estimated revenue of $5,100 per month and costs of $1,000 per month with an initial purchase of $28,000. How long will Wall's Pharmacy have to sell a new product if the MARR is 3% per month? Wall's Pharmacy will have to sell a new product for __ months.
If you are asked to perform an incremental ROR analysis for the two robots listed below, how would you set them up in an incremental cash flow table? WALL-E EVE First cost, $ -40,000 -35,000 Annual operating cost, S per year -1,500 -2,750 Salvage value, $ Life, years 30,000 5 20,500 O Alternative A: WALL-E Alternative B: EVE O The order does not matter. O Alternative A: EVE Alternative B: WALL-E
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please answer all with complete solution and draw the cash flow diagram,,, thank you....
ces Consider two air-conditioning systems with the cash flow estimates as given below. Use AW analysis to dete economic decision to MARR values of 4%, 6%, and 8% per year. System Air-Conditioning System 1 Air-Conditioning System 2 First cost, $ -9,000 -13,000 AOC, $ per year -500 -175 Salvage value, $ -100 -300 New compressor and motor cost at midlife, $ -1,400 -2,900 Life, years 8 12 The annual worth of air-conditioning system 1 when the MARR is 4% is $ The annual worth of air-conditioning system 2 when the MARR is 4% is $ The annual worth of air-conditioning system 1 when the MARR is 6% is $[ The annual worth of air-conditioning system 2 when the MARR is 6% is $1 The annual worth of air-conditioning system 1 when the MARR is 8% is $ The annual worth of air-conditioning system 2 when the MARR is 8% is $
please provide correct answer it would great help
Please correct answer and don't use hand rating
Select the appropriate bundle of proposals using capital budgeting method. Here MARR is 12% per year and available capital budget is $20,000. Net Cash Flow(NCF), S Proposa Initial Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 1 Investment, S PI -7,000 +1,000 +1,70 +2,40 +3,10 +3,80 +4,50 0 0 0 0 P2 -11,000 -900 -600 +700 +700 +600 P3 -9,000 +5,000 5,000 2,000 -300 +300 +1200

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