Compare three alternatives on the basis of their capitalized costs at /= 13.00% per year and select the best alternative. (Include aminus sign if necessary.)AlternativeEFFirst Cost$-75000$-320000AOC, per Year$-40000$-12000Salvage Value$13000$6300024Life, YearsThe capitalized cost of alternative E is $ 372511.40The best alternative isEG$-1025000$-6000$40000000,alternative F is $ 373668.61, and alternative G is $ -1071153.85

To determine the best option among the three alternatives based on capitalized costs, we calculated…

Answered: Compare three alternatives on the basis…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Can some one please help me to answer each question correctly? please and thank you.
With the given information please calculate NPV, NPW, EUAW, and IRR for each alternative. The interest rate is 15%
Can some one please help me to solve the following question. Please and thank you
For alternatives shown in the table below and on the basis of their capitalized costs CC and an interest rate of 10% per year. Answer the following questions to select the better option: Alternative 45,025 5.000 Fist cost 5 249.854 13,000 Maintenance costs, 1 per year Salvage valu Periodic costs Severy 10 years e years 2.000 10,000 10.000 4. CC for alternative A
:[A] { > Incremental analysis ([ B Alternative], [B wins ]): C A company considering 2 different machines at MARR at 12% Both life spans = 10 years Initial Cost Annual Operating lost Benefits per yin ar Salvage Value \table MM If you are and of frying investment to company decide More than 2 alternatives if the additional increment is worth while, compare Alternative: A Incremental analysis (Alternative) pairs then B C A MARR Company at Considering 2 different machines at 12% Both life spans = 10 years. M/C X м/с у Initial Cost 160000 285000 Annual Operating Cost Benefits per year Salvage Value 45 000 90000 45000 105000 20000 40000
Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of 13% per year and a study period of 10 years. Alternative C $-46,000 $4,000 $-1,300 $6,000 10 First Cost AOC, per Year Annual Increase in Operating Cost, per Year Salvage Value Life. Years The present worth of alternative C is $1 (Click to select) offers the lower present worth. HELIME BIEN D $-20,000 $-7,500 $-100 $1,300 5 and that of alternative D is $ A
M2.
A project is being planned that has an initial investment at time 0, annual revenuesand expenses, and a salvage value at the end of the project lifespan (20 years). The financialvalues are summarized below:Initial investment amount at time 0 $150,000Estimated annual revenue $34,500 per yearEstimated annual expenses $8,700 per yearEstimated salvage value at end of lifespan $10,000Minimum attractive rate of return (MARR) 15%a. Calculate the capital recovery amount CR(i%).b. Using the annual worth (AW) method, determine whether purchasing the equipmentis economically justified.c. Repeat part (a) using the internal rate of return (IRR) method based on annual worth(AW).d. Using the present worth (PW) method, determine the break-even time period afterwhich purchase of the equipment generates a profit. (Find N when PW = 0) year period.
Which alternatives can be eliminated immediately in the first step of incremental rate of return analysis, if MARR = 10.0%? Do-nothing A B C D First cost 10 $6,000 $4,500 $9,500 $9,500 Annual 0 998 829 1,716 1,384 benefit Life 10 yrs ROR 10.5% 13.0% 12.5% 7.5% D only not enough information попе D and C
Please show factors and do not use excel.
am. 122.
The following data is available for three different alternatives. Assume an interest rate of 2% per year, compounded annually. Alternative A Alternative B 7,000 6,600 975 2,148 infinite 10 Initial Cost Annual Benefit Useful Life (yrs) Alternative C 14,000 6,027 5 Alternatives B and C are replaced at the end of their useful lives with identical replacements. Using present worth analysis, find the best alternative. Choose Alternative A because it lasts the longest Choose Alternative A because its net present worth is postive O Choose Alternative C because its net present worth is $82,185.21 more than its nearest competitor Choose Alterntive C because it has the highest annual benefit

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