For the five alternatives described in the table on right (note: the third column is ROR of each project (i), while incremental ROR are the Ai values), at MARR of 15%, which project or projects should be selected, using ROR analysis method? 1- if the alternatives are independent: 2-If the alternatives arc mutually exclusive: fill in the steps below based on the comparison with MARR = 15% Step 1: Exclude alternatives and from competition Step 2: (challenger) VS (defender), Ai*= -----> select Step 3: ( new challenger) VS (new defender), ΔΙ* - -----> select

For the five alternatives described in the table on right (note: the third column is ROR of each project (i), while incremental ROR are the Ai values), at MARR of 15%, which project or projects should be selected, using ROR analysis method? 1- if the alternatives are independent: 2-If the alternatives arc mutually exclusive: fill in the steps below based on the comparison with MARR = 15% Step 1: Exclude alternatives and from competition Step 2: (challenger) VS (defender), Ai= -----> select Step 3: ( new challenger) VS (new defender), ΔΙ - -----> select

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

13.12 You work for Bellevue Window Products. While performing an analysis for a new window prod- uct, you found a report from last year that pro- vided the following information regarding the manufacture of a similar product: annual produc- tion rate T 40,000 units; selling price = $70 per unit; fixed production cost = $240,000 per year; variable production cost = $1,700,000 per year; variable selling expenses = $96,000 per year. As a first-cut, you decide to use this information to estimate (a) the breakeven production rate per year, (b) the company's profit last year, and (c) the annual production rate that would generate a profit of $1,000,000 per year. What are your estimates?
what if the projects are indepent which ones to select???
What term do economists use to refer to the minimum amount that investors must eam on the funds they invest in a firm OA economc prot OP. 0pportunity cost Oc explicit cost OD. the nomal rate of return
We have the cash flow shown in the following graph. Under these conditions what would be the cash flow classification? Tenemos el flujo de caja que se muestra en la gráfica. ¿Bajo estas condiciones cual sería la clasificación del flujo de caja? 250 tyears O Negative Geometrik Gradient (Gradiente Geométrico Negativol O Positive Geometric Gradient (Gradiente Geométrico Positivo) O Positive Linear Gradient (Gradiente Lineal Positivn) O Negative Linear Gradient (Gradiente Lineal Negativol
Consider the following two production choices for Matson Engineering: A FC 100,000 150,000 AOC 10,000 12,000 SV 8,000 14,000 L/hr $30 $25 # of People 3 2 Output/hr 10 T years 8 If Matson's MARR is 10% what is the breakeven quantity between these two machines? Group of answer choices А. 382 В. 604 С. 411 D. 321
Q1. Calculate EOQ and plot a graph with the following information. Annual Usage= 1600 units Holding Cost $8 unit/yr Ordering Cost = $100 unit/yr > Price of per Unit= $50 Number of Units 1600 800 400 200 100 80 50 Number of Order 1 2 4 8 16 20 32
At expiration, if you have been diligently delta hedging,, the delta of an option will be: A. 100% if it's in the money and exercised or Zero if it expires out-of-the-money B. 100% if it expires out-of-the-money or zero if it's in the money and exercised C. It depends if you exercise it, sometimes even if an option is in the money at expiration you may chose not to exercise it because you did not cover the cost of your premium. D. You should not be delta hedging if you have a good idea of where ithe underlying is going
Formulate on spreedsheet and solve using solver: During the next two months, General Cars must meet (on time) the following dema nd for trucks and cars: month 1 – 400 trucks, 800 cars; month 2 – 300 trucks, 300 cars. During each month, at most 1000 vehicles can be produced. Each truck uses 2 tons of steel, and each car uses 1 ton of steel. During month 1, steel cost $400 per ton; during month 2, steel costs $600 per ton. At most 1500 tons of steel may be purchased at each month (steel may only be used during the month in which it is purchased). At the beginning of month 1, 100 trucks and 200 cars are in inventory. At the end of each month, a holding cost of $150 per vehicle is assessed. Each car gets 20 mpg and each truck gets 10 mpg. During each month, the vehicles produced by the company must average at least 16 mpg. Formulate an LP to meet the demand and mileage requirements at minimum cost (include steel costs and holding costs).
If APC is constant, C and Yshould also be constant. True or False
A6
The National Bank of Union City currently has one outsidedrive-up teller. It takes the teller an average of three minutes (exponentially distributed) to serve a bank customer.Customers arrive at the drive-up window at the rate of12 per hour (Poisson distributed). The bank operations officer is currently analyzing the possibility of adding a second drive-up window at an annual cost of $20,000. It isassumed that arriving cars would be equally divided between both windows. The operations officer estimates thateach minute’s reduction in customer waiting time wouldincrease the bank’s revenue by $2000 annually. Should thesecond drive-up window be installed? What other factorsshould be considered in the decision besides cost?
The surface area of a certain plant that requires painting is 8 ,000 sq ft. Two kinds of paint are availablewhose brand are J and K .Paint J costs P1.40 per sq.ft but needs renewal at the end of every 4 years while paint K costsP1.8 per square ft. If money is worth 16% effective , how often should paint K be renewed so that it will be aseconomical as paint J? A) 5.6.years C) 3.9 yearsB) 4.2 years D) 5.3 years