Given the data for three alternatives, choose the better alternative using the B/C ratio analysis (incremental). MARR = 12% %3D Alternative Y First cost $140,000 $100,000 $120,000 Operating 60,000 50,000 55,000 costs/year Benefits /year 120,000 100,000 105,000 Salvage value 10,000 25,000 15,000 Life in years 8. 8 8

Given the data for three alternatives, choose the better alternative using the B/C ratio analysis (incremental). MARR = 12% %3D Alternative Y First cost $140,000 $100,000 $120,000 Operating 60,000 50,000 55,000 costs/year Benefits /year 120,000 100,000 105,000 Salvage value 10,000 25,000 15,000 Life in years 8. 8 8

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 19EB: Wallace Company is considering two projects. Their required rate of return is 10%. Which of the two...

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Data Using Incremental with EUAW analysis find the best alternative, MARR = %10. You should use Excel and show your equations separately, see below example: [A Benefit - [IC (A/P, i%, n) - Salvage (A/F, i, n)] + A Cost+ G Cost (A/G, i, n)] First Cost Salvage Value Annual Benefit M&O M&O Gradient Useful Life, Years A $2,300,000 $85,000 $580,000 $65,000 $10,000 10 B $2,750,000 $125,000 $670,000 $78,000 $15,000 10 с $2,550,000 $95,000 $650,000 $72,000 $12,500 10
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Which project should be chosen based on Internal Rate of Returns (IRR)?
C1 = 68100C2 =91200R = 45100 A ) Select the best project using Return on Investment ROI ( Rate of Return ) method the data of both projects are shown the table below. B ) Compare the effect of decrease in revenues of Annual revenues of 5 % on the rate of return for project Y ( calculate the % of change in ROI ).
Which alternative should be selected using incremental rate of return analysis, if MARR = 12.0%? First cost Annual benefit Life ROR Do-nothing 0 10 yrs A B $6,500 $3,500 1,246 765 с D $7,500 $5,000 1,523 779 14.0% 17.5% 15.5% 9.0% B, because its ROR is the highest something other than C, because C costs the most initially C because C has the highest annual benefit C, because the C-B increment has a ROR of 13.70% and the A-B increment has a ROR of 9.66%
Given the financial data for four mutually exclusive alternatives in the table below, determine the best alternative using the incremental rate of return (∆RoR) analysis. MARR =10%.
D2
Q2 given below. Discount rate Year Costs . Refer to the formula given in the previous problem, complete the required data in the table 8% Benefits Cashflow Discount factor Present Net Value (NPV) Discounted costs ANSWER 0 140,000 O 40,000 200,000 160,000 Return on Investment (Rol) 2 40,000 200,000 160,000 Total
Subject:
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Please answer show all the steps required to understand the concept clearly with formulas ??