Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The MARR is 6% per year Lead Acid $6,000 $2,250 Capital investment Annual expenses Useful life Market value at end of useful life Click the icon to view the interest and annuity table for discrete compounding when /= 6% per year. Which alternative should be selected? Choose the correct answer below O Lithium lon Lead Acid FED (b) Determine which alternative should be selected based on the AW method, also assuming repeatability The AW of the Lead Acid is $ (Round to the nearest dollar) The AW of the Lithium Ion is $ (Round to the nearest dollar) Which alternative should be selected? Choose the correct answer below O Lithium lon 4 years $0 (a) Determine which alternative should be selected based on the PW method Assume repeatability and use a study period of 12 years (Round to the nearest dollar) The PW of the Lead Acid is $ The PW of the Lithium lon is $ (Round to the nearest dollar) Lithium lon $12,000 $2,200 6 years $2,800

Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The MARR is 6% per year Lead Acid $6,000 $2,250 Capital investment Annual expenses Useful life Market value at end of useful life Click the icon to view the interest and annuity table for discrete compounding when /= 6% per year. Which alternative should be selected? Choose the correct answer below O Lithium lon Lead Acid FED (b) Determine which alternative should be selected based on the AW method, also assuming repeatability The AW of the Lead Acid is $ (Round to the nearest dollar) The AW of the Lithium Ion is $ (Round to the nearest dollar) Which alternative should be selected? Choose the correct answer below O Lithium lon 4 years $0 (a) Determine which alternative should be selected based on the PW method Assume repeatability and use a study period of 12 years (Round to the nearest dollar) The PW of the Lead Acid is $ The PW of the Lithium lon is $ (Round to the nearest dollar) Lithium lon $12,000 $2,200 6 years $2,800

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The MARR is 4% per year. Lead Acid Lithium lon Capital investment Annual expenses $7,000 $2,250 12 years $0 $13,000 $2,500 18 years $2,600 Useful life Market value at end of useful life Click the icon to view the interest and annuity table for discrete compounding when i= 4% per year. Determine which alternative should be selected based on the PW method. Assume repeatability and use a study period of 36 years. The PW of the Lead Acid is $ - 56600 . (Round to the nearest hundreds.) The PW of the Lithium lon is $ 65400. (Round to the nearest hundreds.) Which alternative should be selected? Choose the correct answer below. Lithium lon Lead Acid
Consider the following two investment alternatives. Determine the range of investment costs for Alternative B (i.e., min. value < X
SUBJECT: ENGINEERING ECONOMICS (a) Identify the Given and the Unknown or what is being asked in the problem (b)Provide the formula to be used (c)Show the complete solution. The final answer is already provided. What is the value of a perpetuity of P100 per year if the discount rate is 5% and the cash flows do not begin until two years from now? Answer: P = P1,814.05
不 The cash flow diagram below has an internal rate of retum of 27% What is the value of Y if perpetual service is assumed? Click the icon to view the diagram for cash flows Click the icon to view the interest and annuity table for discrete compounding when the MARR is 27% per year If perpetual service is assumed, the value of Y is $(Round to the nearest dollar) More Info N 1 2 3 4 5 6 7 a 9 10 Single Payment Discrete Compounding: -27% Compound Amount Present Factor To Find F Given P F/P 12700 10120 2.0484 20014 33038 4 1950 5.3258 67675 85040 10 9153 Worth Factor To Find P Given F PIF 07874 06200 04002 Compound Amount Factor To Find F Given A FIA 0.1164 0.0016 1.0000 2.2700 3.8829 59013 85327 0.3844 03027 02303 0.1877 0.1478 21.3612 Uniform Series Present Worth Factor To Find P Given A PIA 07874 1.4074 10956 2:2000 25827 11.8366 2.8210 10.0324 3.0087 3.1564 3.2720 28.1287 307235 33644 Sinking Fund Factor To Find A Given F A/F 1.0000 04405 02575 0.1600 0.1172 0.0045 00624 0.0405 00356…
Complete the following analysis of investment alternatives and select the preferred alternative. The study period is three years and the MARR = 15% per year. Alternative Alternative Alternative A B C Capital investment Annual revenues Annual costs Market value at EOY 3 PW (15%) Click the icon to view the interest and annuity table for discrete compounding when i=15% per year. OA. Alternative A OB. Alternative C OC. Alternative B OD. Do Nothing $11,000 3,900 240 4,900 578 The PW of the alternative B is $ (Round to the nearest dollar.) Select the preferred alternative. Choose the correct answer below. $15,000 6,500 450 6,100 ??? $13,100 5,500 400 2,800 385
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Please help me with show all calculation thanku
Consider the following investment project. Calculate the net future worth of this investment at 11% and determine the acceptability of the investment. An - $80,000 21,700 22,700 1 2 3 32,900 32,900 18,000 5 Click the icon to view the interest factors for discrete compounding when i= 11% per year. The net future worth of this investment will be S thousand. (Round to one decimal place.) More info Single Payment Equal Payment Series Compound Amount Present Compound Amount Sinking Fund Present Capital Recovery Factor Worth Worth Factor Factor Factor Factor Factor (F/P, i, N) (P/F, i, N) (F/A, i, N) (A/F, i, N) (P/A, i, N) (A/P, i, N) 1 1.1100 0.9009 1.0000 1.0000 0.9009 1.1100 2 1.2321 0.8116 2.1100 0.4739 1.7125 0.5839 3 1.3676 0.7312 3.3421 0.2992 2.4437 0.4092 4 1.5181 0.6587 4.7097 0.2123 3.1024 0.3223 5 1.6851 0.5935 6.2278 0.1606 3.6959 0.2706 6 1.8704 0.5346 7.9129 0.1264 4.2305 0.2364 7 2.0762 0.4817 9.7833 0.1022 4.7122 0.2122 8 2.3045 0.4339 11.8594 0.0843 5.1461 0.1943 9 2.5580…
PRESENT VALUE, you have a choice of accepting either of the two, 5-year cash flow streams or lump sum amounts’. One cash flow stream is an annuity, and the other is a mixed stream. You may accept alternative A or B Either as cash flow stream or as a lump-sum. Given the cash flow stream and lump-sum amounts associated with each, and assuming a 9% opportunity cost, which alternative (A or B) And in which form (cash flow stream or lump-sum amount) would you prefer? End of year Alternative A Alternative B 1 $700 $1,100 2 $700 $900 3 $700 7$00 4 $700 $500 5 $700 $300 LUMP-SUM AMOUNT At time zero $2,825 $2,800
8. You are evaluating five different investments, all of which involve an upfront outlay of cash. Each investment will provide a single cash payment back to you in the future. Details of each investment appears here: 2. Calculate the IRR of each investment. State your answer to the nearest basis point (i.e., the nearest 1/100th of 1%, such as 3.76%). Review Only Click the icon to see the Worked Solution (Calculator Use). Click the icon to see the Worked Solution (Spreadsheet Use). The yield for investment A is %. (Round to two decimal places.) The yield for investment B is %. (Round to two decimal places.) The yield for investment C is %. (Round to two decimal places.) The yield for investment D is %. (Round to two decimal places.) The yield for investment E is %. (Round to two decimal places.) 2: Data Table Initial Future End of Investment Investment Value Year A $1,800 $6,387 14 B $9,500 $14,353 11 $600 $3,091 17 D $3,500 $4,505 3 E $5,800 $12,092 12 (Click on the icon located on the…
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Assuming that Alternatives B and C are replaced with identical units at the end of their useful lives, and an 8% interest rate, which alternative should be selected? Use an annual cash flow analysis. A B C cost $12,500 $15,000 $17,500 Annual benefit 1,500 3,500 2,500 useful life (yrs) 7 15

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