Ginger has agreed to a lawsuit settlement of $700,000 with a certain pharmaceutical company.The company has offered options to pay her the awarded money.After discussing the terms with the company, she expects that the company should be able to pay her back within 3-5 years Ginger has developed the following estimatesOptionAB-PessimisticCMost likelyD.OptimisticDelay period5 years4 years3yearsCash Flow Estimates, S$700.000 now$151.000 per year for every year the payment is delayed$173.200 per year for every year the payment is delayed$234.500 per year for every year the payment is delayedIf her personal MARR is 15% per year, what is the present worth of each of her options?Option A-PW:Option B- PW:Option C- PW:Option D PW:2.With respect to her personal MARR, which option should she select?

Ginger has agreed to a lawsuit settlement of S700,000 with a certain pharmaceutical company. The company has offered options to pay her the awarded money. Ater discussing the terms with the company she expects that the company should be able to pay her beck within 35 years Ginger has developed the following estimate Option A B-Pessimistic CMost kely D.Opmiste Delay period Syears 4 years 3years Cash Flow Estimates, S $700.000 now $151 000 per year for every year the payment is delayed $173 200 per year for every year the payment is delayed $234 500 per year for every year the payment is delayed If her personal MARR is 15% per year, what is the present worth of each of her options? Option A- PW Option B-PW: Option C-PW: Option D PW: With respect to her personal MARR, which option should she select?

Ginger has agreed to a lawsuit settlement of S700,000 with a certain pharmaceutical company. The company has offered options to pay her the awarded money. Ater discussing the terms with the company she expects that the company should be able to pay her beck within 35 years Ginger has developed the following estimate Option A B-Pessimistic CMost kely D.Opmiste Delay period Syears 4 years 3years Cash Flow Estimates, S $700.000 now $151 000 per year for every year the payment is delayed $173 200 per year for every year the payment is delayed $234 500 per year for every year the payment is delayed If her personal MARR is 15% per year, what is the present worth of each of her options? Option A- PW Option B-PW: Option C-PW: Option D PW: With respect to her personal MARR, which option should she select?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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can you answer this pls draw cash flow diagram thanks
Req#2: Use Aw analysis to find the best alternative for your company starting one of the following projects. Your company MARR is 9.1 %. Draw the cashflow diagram. Projects data First cost, $ Annual cost, $/year Annual revenue, $/year Life, years Project-1 -85,000 -23, 100 54,000 5 I Project-2 -135,000 -11,000 55, 100 10 Project-3 -77,000 -21, 100 37, 100 5 Project-4 -90,000 -26, 100 47, 100 5
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Hand written solutions are strictly prohibited
Given the following: Alt. A Alt. B Alt. C Initial Cost $25,000 $40,000 $32,000 Benefits Year 1 5000 2000 6000 Year 2 5500 9000 6000 Year 3 6000 8000 6000 Year 4 6500 7000 6000 Year 5 7200 6000 7000 Salvage Value 4000 8000 6500 MARR 8% Find the best alternative using uniform annual cash flow analysis.
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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