For the following projects what is the opportunity cost of capital if the budget is (a) S60,000, and (b) S120,000? If Project 4 has an external environmental cost of S1000 annually that is included, (c) how does this change the answer to (a)? (d) How does this change the answer to (b)? Project Life (years) First Cost Annual Benefit Salvage Value 20 $20.000 $4000 20 20,000 3200 S20,000 3 30 20,000 3300 10,000 4 15 20,000 4500 5 25 20.000 4500 -20.000 6 10 20,000 5800 15 20. 000 4000 Li0 000

For the following projects what is the opportunity cost of capital if the budget is (a) S60,000, and (b) S120,000? If Project 4 has an external environmental cost of S1000 annually that is included, (c) how does this change the answer to (a)? (d) How does this change the answer to (b)? Project Life (years) First Cost Annual Benefit Salvage Value 20 $20.000 $4000 20 20,000 3200 S20,000 3 30 20,000 3300 10,000 4 15 20,000 4500 5 25 20.000 4500 -20.000 6 10 20,000 5800 15 20. 000 4000 Li0 000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

15-23
For the following projects what is the opportunity cost of capital if the budget is (a) $60,000, and (b) $120,000? If Project 4 has an external environmental cost of S1000 annually that is included, (c) how does this change the answer
to (a)? (d) How does this change the answer to (b)?
G
Project Life (years) First Cost Annual Benefit Salvage Value
1
20
$20,000
$4000
2
20
20,000
3200
$20,000
30
20,000
3300
10,000
15
20,000
4500
5
25
20,000
4500
-20,000
6.
10
20,000
5800
7
15
20,000
4000
10,000
4.

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kuzukuzu12121@outlook.com just sent here I NEED EXCEL FİLE. Determine the NPW, AW, FW and IRR of the following engineering project. Initial Cost ($400,000) The Study Period 15 years Salvage (Market) Value of the project 15% of the initial cost Operating Costs in the first year($9,000) Cost Increase 3% per year Benefits in the first year $40,000 Benefit Increase 9% per year MARR 8% per year Is the Project acceptable? WHY?
Can someone please help me to solve this problem with neat hand calculations. Please and thank you!!