For the following alternatives compute the Delta B/C ratio of Alternative C minus Alternative B. Use11% as MARR. (Remember for our convention, salvage value is a minus cost.)ProjectInitial InvestmentAnnual BenefitSalvage ValueUseful Life2.132.981.180.991.28A-15003503205B-20005006106-25006008207D-520085023009

Given Project A D Initial Investment -1500 -5200 Annual Benefit 350 850 Salvage Value 320…

Answered: For the following alternatives compute…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

5) a) Four mutually exclusive alternatives including "Do Nothing" are presented below. Find the best alternative for MARR 7%. NKJ MJ SJ DJ $0 $43,000 4,150 7.5% First cost $24,000 $17,000 EUAB 2,500 1,700 ROR 8.3% 6% 0% All alternatives have 20-year useful life with Zero salvage value. b) Write the steps for ROR analysis.
Calculate the conventional benefit-cost ratio for the alternative: Initial Investment 150000 Revenues 50000 Costs 20000 Salvage Value 50000 Useful life 10 MARR 0.1 Select one: a. 1.2114 b. 1.3130 c. 1.4659 d. 1.3681 e. 1.2960
Q.2- if the rate of return is 10 % and all equipment shown in the following table have service life for 20 years with no salvage value, which equipment should be selected using the incremental benefit cost analysis. Equipment First cost,S Y 1600000 1500000 1900000 1200000 Annnal M&O, S/year 50000 60000 35000 so000 Benefits, S'year Dis benefits, S/year 269000 260000 282000 250000 13000 15000 22000 20000 Life, years 20 20 20 20
Construct and upload a choice table for the alternatives shown below, as the previous problem. Each alternative has a 20 year useful life and no Salvage value. A В C Initial $55,000 $27,000 $20,000 Investment Annual $5,600 $2,700 $2,200 income 8% 7.75% 9.06%
A project with a life of 10 has an initial fixed asset investment of $25,620, an initial NWC investment of $2,440, and an annual OCF of −$39,040. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 10 percent, what is the project's equivalent annual cost, or EAC? Show equations using excel.
Based on estimates the data for 2 types of bridges with different lives are as follows. If the minimum attractive rate of return is 9%, determine which project is more desirable using Annual Cost Method & Rate of Return Method. Timber Bridge Steel Bridge First Cost Salvage Value Life in yrs Annual maintenance 500k 20k 12 60k 1.4M 100k 36 25k
The following three alternatives have been developed and costed to improve the efficiency of aircraft engines. Compare the alternatives using capitalized cost and a MARR of 10% per year compounded annually. Alternative Alternative Alternative G First Cost, $ -1,000,000 -3,000,000 -5,000,000 Net income $ per year 325 000 400,000 600,000 Salvage value, S 50,000 70,000 Life, years 4 8.
Compute the project cost. Gross income 1,000,000 Life of project Operating cost Rate of project 500,000 5 years 20% Benefit ratio 1.08 O a. P1,384,543.00 O b. P1,348,543.00 O c. P1,384,534.00 O d. P1,384,453.00
1. Each aiternative has a 10-year useful life and have no salvage value. If the MARR is 8%, which alternative would you select? You must use incremental analysis (incremental internal rate of return). Please show step by step calculations. R Initial Cost 15000 22000 35000 Annual Costs 3500 3100 2750 Annual Revenues 8000 9575 11500
9) Two alternatives are being considered. The best estimates for the various consequences are as follows: $2500 300 Cost $1500 Net annual benefit 200 End-of-useful-life salvage value |Useful life, in years If interest is 3 %, which alternative has the better net present worth (NPW)? 200 500 10 10
6) Data for 2 alternatives are given below. If i = 10%, determine the cost of alternative A so that the 2 alternatives will be equally desirable using BC ratio. Alternatives A B Cost X P3,200 Salvage Value 900 600 Annual Benefit 1150720 Life (years) 8 8
Consider a project with a life of 3 years with the following information: initial fixed asset investment = salvage value; price = $35; variable costs $13; fixed costs = $112,000; quantity sold = 53,760 units; tax rate = 23 percent. How sensitive is OCF to changes in quantity sold? $320,000; straight-line depreciation to zero over the 3-year life; zero Multiple Choice $21.85 $0.06 $19.31

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

For the following alternatives compute the De 11% as MARR. (Remember for our convention, salvage value is a minus cost.) Project Initial Investment Annual Benefit Salvage Value Useful Life 2.13 2.98 1.18 0.99 1.28 A -1500 350 320 5 -2000 500 610 6 C -2500 600 820 7 D -5200 850 2300 9 B. Ust