build a model Each of the three alternatives shown has a 5-yearuseful life. MARR is 10%, a) Using FW, which alternative should be selected? B) Using benefit–cost ratio analysis, which alternative should be selected? C) what is the discounted payback period of each alternative? ABC Cost $ 650.00 $ 500.00 $ 250.00 Uniform annual benefit $ 180.00 $ 140.00 $ 66.00 Useful life, years363

For alternative AFirst cost=$650Annual benefit=180For alternative BFirst cost=$500Annual…

Answered: Each of the three alternatives 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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Given the following three mutually exclusive alternatives, What alternative is preferable, if any, assuming i = 10%? a. Find PWA = $ b. Find PWB = $ c. Find PWC = $ d. Choose Alternative
For the following 4 options (one must be chosen), what is the smallest MARR for the "Do Nothing" option to be chosen? Option A Year O Cost ($) Years 1-10 Benefit ($) 5.26% 9.59% 7.09 % 10.69% "Do Nothing" 0 O -1,000 153 B -1,500 207 C -2,000 261
Present worth
what's the PW of Alternative A and B?
Data for problems 5 to 8 Data for four mutually exclusive alternatives are given in the table below. Assume a life of 6 years and a MARR of 10%, and EUAB stands for equivalent uniform annual benefit. Alt. A Alt. B Initial Cost EUAB $140 Salvage $40 Value $560 $340 OC1.45 OD079 $100 So Alt. C $120 $40 SO Alt. D Do SO SO SO Nothing The AB/AC ratio for the third increment, (A-B) is OA 0.94 OB. 0.89
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QUESTION 7 for th below two machines and based on AW analysis which machine we should select? MARR-10%. Machine A Machine B First cost, $ 100,000 Annual cost, S/year 7,000 Salvage value, $ Life, years 3 infinite Answer the below question: A-the AW for machine A QUESTION 8 For th below two machines and based on AW analysis which machine we should select? MARR-10% Machine A Machine B First cost, $ 135,982 Annual cost, Siyear 8,740 12.308 Salvage value, $ Life, years 3 infinite Answer the below question: B- the AW for machine B QUESTION 9 C-Based on the AW value you got in the previous 2 questions, which machine we should select? type you explanation below For the toolbar, press ALT+F10 (PC) or ALT-FN-F10 (Mac) B IUS Paragraph M Arial Y 10pt 田饼印园 BE 0) 20,000 9,000 4,000 23,720 4.805- !!! 4
Which increment should be examined first in incremental rate of return analysis, if MARR = 10.0%? Do-nothing A B C D First cost 0 $8,000 $4,500 $8,500 $6,000 Annual 0 1,387 914 1,661 935 benefit Life 10 yrs ROR 11.5% 15.5% 14.5% 9.0% A-B OB-A OA-C OB-C
Given cash flows for two alternatives as shown in table below, choose the most attractive alternative if MARR = 8%. Year 0 1 2 3 through ∞ Alt. A -$42K $3.6K $3.6K $3.6K Alt. B -$54K $4.7K $4.7K $4.7K Group of answer choices Alt. A Alt. B Select neither Select either
A sportswear factory has two alternative machines for producing jerseys. Costs are shown below. Minimum acceptable rate of return is 8%.What is the annual cost for machine Y?
Two alternatives have the following cash flows: Alternative A First Cost $40,000 Annual Income 14,000 Salvage Value 4,000 Useful Life 3 years Alternative B $75,000 14,600 6,000 6 Years At a 6% interest rate, which alternative should be selected? A because the NPW of A is greater than the NPW of B B because the NPW of B is greater than the NPW of A Both ○ Neither
7) Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life. It has a salvage value of $3000 at the end of 10 years. If the MARR is 15 percent, what is the present worth of this project?

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build a model Each of the three alternatives shown has a 5-year useful life. MARR is 10%, a) Using FW, which alternative should be selected? B) Using benefit–cost ratio analysis, which alternative should be selected? C) what is the discounted payback period of each alternative?			A	B	C
	Cost	$ 650.00	$ 500.00	$ 250.00
	Uniform annual benefit	$ 180.00	$ 140.00	$ 66.00
	Useful life, years	3	6	3

Each of the three alternatives shown has a 5-year useful life. MARR is 10%, a) Using FW, which alternative should be selected? B) Using benefit–cost ratio analysis, which alternative should be selected? C) what is the discounted payback period of each alternative? A B C