Find the capitalized cost for the following cash flows occurring over an infinite number of periods, where A, B and C aredefined as below. A $40 B = $20 C = $60 Assume the interest rate is 6%. Group of answer choices $660.38 $58.92$39.62 $743.86

Capitalized cost = Sum of all present valuesPV = Cash Flow /Interest Rate Present value of each…

Answered: Find the capitalized cost for the…

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 capitalized cost (CC) of the given project whose Cash Flow diagram is given below is closest to: j= 12% per year 1 3 6 7 8 9 10 11 A= $2,000 A= $5,000 PO=$50,000 Capitalized Cost= ? $-83,754 O $-78,145 O $-75,895 $-85,500 $-80,852
If mutually exclusive projects with normal cash flows are being analyzed, the net present value (NPV) and internal rate of return (IRR) methods always agree. Projects Y and Z are mutually exclusive projects. Their cash flows and NPV profiles are shown as follows. Year Project Y Project Z 0 -$1,500 -$1,500 1 $200 $900 2 $400 $600 3 $600 $300 4 $1,000 $200 NPV (Dollars) 800 600 Project Y 400 Project Z 200 -200 0246 8 10 12 14 16 18 20 COST OF CAPITAL (Percent) If the weighted average cost of capital (WACC) for each project is 14%, do the NPV and IRR methods agree or conflict? O The methods agree. O The methods conflict.
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
A tunnel to transport water initially cost $1,000,000 and has expected maintenance costs that will occur in a 6-year cycle as shown below, assume MARR is 10% per year. End of Year: 3 Maintenance: $35,000 $35,000 $35,000 $45,000 $45,000 $60,000 Compute the Equivalent Annual Cost of the maintenance. Hint: Don't insert the negative sign Compute the Capitalized Cost? Hint: Don't insert the negative sign
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please answer all with complete solution and draw the cash flow diagram,,, thank you....
Given four proposals for funding a new project with a 100M Ilimit on capital funding and the MARR is established at 12% per year. Project First Cost Estimated Annual Savings Project Life, Years 12M 5M 3 25M 7.3м 4 Y 45M 12.1M 6 60M 9M 8 Use the exact internal rate of return method to determine which of the four independent projects should be funded. Write the value of the acceptable project accordingly/in sequence (W/XY/Z). ANSWER for ALTERNATIVE 1: Blank 1 ANSWER for ALTERNATIVE 2: Blank 2 Blank 1 Add your answer Blank 2 Add your answer
A project has an initial cost of $50 000, net annual cash inflows of $20 000, and a $2 000 salvage value after five years. Which of the following gives the project's approximate external rate of return (i*) if MARR = 10%? -50 000(P/F, i*, 5) + 20 000(P/A, i*, 5) + 2 000(F/P, i*, 5) = 0 -50 000(F/P, i*, 5) + 20 000(F/A, i*, 5) + 2 000 = 0 -50 000(F/P, i*, 5) + 20 000(F/A, 10, 5) + 2 000 = 0 -50 000(F/P, i*, 5) + 20 000(P/A, i*, 5) + 2 000 = 0
Solve using FW method and INCREMENTAL ANALYSIS. Show cash flow diagram and complete solution. The estimated capital investment and the annual expenses) for four alternativedesigns of a diesel-powered air compressor are shown below, as well as theestimated market value for each design at the end of the common five-year usefullife. The study period is five years, and the MARR is 10% per year. One of thedesigns must be selected for the compressor, and each design provides the same levelof service. On the basis of this information,- Show that the FW method (i = MARR), using the incremental analysis procedure.
Financial planners (and engineering economists) unanimously encourage people to seek out the highest rate of return possible within their personal level of risk tolerance. To illustrate this point, they frequently produce a table similar to the one below. Fill in the blank cells in this table assuming that your goal is to have $1,000,000 on your 65th birthday and that deposits start on your 26th birthday and continue annually in the same amount on each birthday up to and including your 65th birthday.
Only typed answer Beaver, a city in the United States, is attempting to attract a professional soccer team. Beaver is planning to build a new stadium that will cost $360 million. The annual upkeep is expected to amount to $850,000. The turf will have to be replaced every 13 years at a cost of $980,000. Painting every 7 years will cost $97,000. If the city expects to maintain the facility indefinitely, what is the estimated capitalized cost at i = 9% per year? The estimated capitalized cost is $_______
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Find the capitalized cost for the following cash flows occurring over an infinite number of periods, where A, B and C are defined as below. A $40 B = $20 C = $60 Assume the interest rate is 6%. Group of answer choices $660.38 $58.92 $39.62 $743.86