If the interest rate, i=10%, the capitalized cost (CC) of the given project whose Cash Flow diagram is given below is closest to: 0 PO $800,000 1 2 $200,000 (Nonrecurring) 3 ---% per year 4 5 A= $5,000 6 7 8 Year $1025890 $1030560 $1038450 $1027273 $2027372 O O O O O

If the interest rate, i=10%, the capitalized cost (CC) of the given project whose Cash Flow diagram is given below is closest to: 0 PO $800,000 1 2 $200,000 (Nonrecurring) 3 ---% per year 4 5 A= $5,000 6 7 8 Year $1025890 $1030560 $1038450 $1027273 $2027372 O O O O O

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: A civil engineer planning for her retirement places 12% of her salary each year into a…

A: Here we calculate the future worth of his retired fund , so calculation of the following by using…

Q: Define the term Annual cash flow analysis?

A: Annual cash flow analysis is the examination of a company's annual cash inflows and and outflows. It…

Q: 1. Find the Future worth of the cash flow given below in year 11 with an interest rate of 8% per…

A: Ans in step 2

Q: Jason bought a car for $40,000 upon graduation from college with an engineering degree and a very…

A: The amount remitted each month to settle the loan within the allotted time is known as the monthly…

Q: The cash flows for three mutually exclusive alternatives are given in table below. MARR = 4%. ALB…

A: The term incremental rate of return often refers to a rate of return on an investment that is…

Q: If THV Plastics purchases a new building now for Php 1.3 million for its warehouse, what must the…

Q: What nominal rate per month is equivalent to an effective 6.3 % per month, compounded continuously?…

A: Given information: The effective interest rate is 6.3% per month, compounded continuously. The…

Q: Maggie invested $5000 in the stock market. After 17 months, the value of her stock was increased to…

A: Given: Present value(PV)=$5000 Future value(FV)=$6400 Number of years(n)=17 To find: The nominal…

Q: For the given cash flow, if B= $3,400 , the future value, F is closest to:

A: Given the value at the end or the start of the second year = $3400 Interest rate = 12%

Q: Inc lass Excercise Савствање PPW = ? 5000 PW=? 5000t (2) 1 Soool (3) Son 2 Pw=n G 9=7%, i=15% 7 500…

A: The Present Worth Analysis is one of the techniques used to assess the project options. The worth of…

Q: None

A: Incremental Rate of Return Comparisons:Compare A vs. B:\Delta EAC = EAC_B - EAC_A = -8697 + 2652 =…

Q: Question 4 Which increment should be examined first in incremental rate of return analysis, if MARR…

A: Alternative selection can be done on the basis of incremental internal rate of return (IRR). For one…

Q: You currently have $20,000 in the bank. The monthly interest rate is 0.5%. What equal amount could…

A: Given that, Monthly interest, (i) =0.5% Time, n=60 months Present value = $20,000

Q: Sarah borrows some money to buy a new car. The car dealership allows her to defer payments for 12…

A: Present Value refers to the discounted value of a series of future payments or of a lump sum amount…

Q: The time line represents which investment scenario? 2 3 4 Today year years years years + $800 $800…

Q: Find the capitalized cost of a present cost of $300,000, annual costs of $35,000 for more than 50…

A: Given present cost = 300000 $ Annual cost = 35000 $ Interest rate = 12 %

Q: (3) 9=7%, i=15% Sooo 01 Pw=n + 2 3 4 5 6 789 10

A: A cash flow diagram represents the inflow or the outflow of cash above and below the horizontal line…

Q: Hadeel borrows money in the senior year to buy a new car. The car dealership allows to defer…

A: As the monthly payments are deferred for the period of one year, therefore, we will calculate the…

Q: Complete the following analysis of cost alternatives and select the preferred alternative. The study…

A: Minimum acceptable rate of return as the name suggests is the minimum return an investment is…

Q: VALUES & SYMBOLS FOR THE FOLLOWING CASE. A project of 14-year lifecycle, started with an investment…

A: A cash flow diagram is the cash inflow and outflow of a firm in which the revenue generated and…

Question

If the interest rate, i=10%, the capitalized cost (CC) of the given project whose Cash Flow diagram is given
below is closest to:
0
PO=$800,000
1
2
$200,000
(Nonrecurring)
3
F---
-% per year
4
5
A= $5,000
6
7 8
Year
$1025890 O
$1030560
$1038450
$1027273
$2027372 O

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction of the problem

VIEW

Step 2: Capitalised cost of the project

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Street lighting fixtures and their sodium vapor bulbs for a two-block area of a large city need to be installed at a first cost (investment cost) of $130,000. Annual maintenance expenses are expected to be$6,500for the first8years and$8,500 each year thereafter upto 25years. With an interest rate of 9% per year, what is the present worth cost of this project? Choose the closest answer below. A) $202,422 B $238,597 C) $249,468 D) $277,339
2 Answer 345678 ASM International, an Australian steel company, claims that a savings of 30% of the cost of stainless steel threaded bar can be achieved by replacing machined threads with precision 5 weld depositions. A U.S. manufacturer of rock bolts and grout-in fittings plans to purchase the equipment. A mechanical engineer with the company has prepared the following cash 6 flow estimates. Determine the expected nominal annual rate of return (nominal ANNUAL IRR). Draw CFD, and Enter the Answer in 'B2' Cell above. 10 11 Quarter 12 13 14 15 16 17 5 to 10 18 19 20 21 22 23 24 0 $ 1 $ 2 $ 3 $ 4 $ $ Cost 350,000.00 $ 25,000.00 $ 20,000.00 $ 15,000.00 $ 11,000.00 $ 2,000.00 $ Benefit 8,000.00 15,000.00 25,000.00 30,000.00 50,000.00
m mmm. m Given the cash flows in table below, determine the rate of return. Year Cash Flow 0 $10K 1 $0 2 $5K 3 $0 4 $10K Group of answer choices Cannot determine 100% 8.91% 7.6% 4.9% 11.2% Flag question: Question 8
! Required information The annual revenues associated with several large apartment complexes are $225, $225, $275, $375, $75, and $125 for years 0, 1, 2, 3, 4, and 5, respectively. Determine the net cash flow and whether each cash flow series is conventional or nonconventional. The costs for years 0, 1, 2, 3, 4, and 5, respectively, are provided in the problems. When the cash flow is zero, assume it to be negative. Year 0 Cost, $ -1500 1 -450 The cash flow is conventional The Cumulative cash flow is 0 1 Year Cumulative CF, $ 2 -300 2 3 -400 3 4 -125 4 5 -400 5
1. a) Find the future worth of the following cashliflow. $200 $200 $100 1 2 3 9 S K-5pk 6%- O $100 b) Find the present worth of cash flow in part (a) Equations: F = Px (1+i) ~