Data for two alternatives are given in the table below. Determine the X cost of alternative B so that the two alternatives will be equally desirable. Assume an interest of 11%. Use BCR analysis. ALTERNATIVE A B Cost 9500 Salvage value |1000 1600 Annual benefit 2800 3700 Life (years) 12

Q: Given the data in the table below, calculate the PW of A and B. Choose the better alternative- using…

A: MARR =8%Initial cost of A = $10,000Initial cost of B = 9,000Annual benefits of A = $5,200Annual…

Q: am. 104.

A: a)Total Construction Cost:Total Construction Cost = Construction Cost per Unit × Total Units Total…

Q: If a finite-life alternative (for example, 5 years) is compared to one with an indefinite or very…

A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…

Q: Three mutually exclusive projects are being considered. First cost   2000    3000    4000 uniform…

A: AW, project A = 2,000 x A/P (8%, 5) +200+1,000 x A, 5)= -2000 +0.2505+200+1,000×0.1705=…

Q: 3. Using & IRR analysis, determine the best altemative using a 10 year analysis period. MARR = 10%.…

A: Internal rate of return refers to the return that is being earned over the investment amount over a…

Q: Assume a 30-year life project with an initial capital cost of $250 million, an annual operating cost…

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A: Sensitivity analysis is performed to assess the impact of change in any variable, on the overall…

Q: 170

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A: Accounting rate of return (ARR) and benefit to cost ratio are calculated as shown below.

Q: Problem 2. The first cost (FC), life (n), and annual benefits (A) for a prospective project are…

A: ParticularsPessimisticMost likelyOptimisticFirst cost$150,000.00$100,000.00$80,000.00Annual…

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A: The Rate of Return (ROR): It is the increase or decrease in the value of any investment with time as…

Q: tirst cost for E M&O for A salvage value Proc First

A: Given: Two alternatives A and B is: 0 = -53,000+ 21,000(P/A, ∆i*B-A,5) + 80000(P/F, ∆i*B-A,5)

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A: Incremental cash flows consist of initial incremental cash outflow, incremental annual benefit and…

Q: Given the data in the table below, choose the better alternative using net present value (NPV)…

A: The question is related to Capital Budgeting. The Net Present Value is calculated with the help of…

Q: 1. The better alternative between the first increment is ________________. 2. The better…

A:

Q: analysis, determine which one of the three mutually exclusive alternativ should be selected. Each…

A: Given First cost , Uniform annual benefit and Salvage value of device A,B & C.

Q: Third Question: An investment of 4000$ and estimated salvage value of 3000$, and the following…

A: To evaluate the investment using the External Rate of Return (ERR) method, we need to follow these…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.