Question 4A local company is considering in investing in new, more productiveequipment Data concerning the three best aternatives are show below. Theuseful life of the equipment is 20 years and MARR =9KWhat is the incremental return on the first incremental pair (ahen andered byincreasing investment) RRIArsWhat is the incremental IRR on the second pair?ArsWhich alternative would you select?Ans. XBCInitialS66.000.00$55,000.00 $23.500.00 $17,32000investment$7.830.00Annual net$6.093.00 $3.177.00 $165300incomeSalvage value $4.500.00 $3.23200 $1.73a01237%S8.230.0010.40%7.4659.35%IRR

Internal rate of return is a strategy for working out a venture's pace of return. The term interior…

l company is consi pment Data concerning the three best Ful life of the equipment is 20 years and MARR=9A at is the incremental return on the first incremental pair bahen ardered by creasing investment) IRRI Ans LS Ars L What is the incremental IRR on the second pair? Ans X Which alternative would you select? C

l company is consi pment Data concerning the three best Ful life of the equipment is 20 years and MARR=9A at is the incremental return on the first incremental pair bahen ardered by creasing investment) IRRI Ans LS Ars L What is the incremental IRR on the second pair? Ans X Which alternative would you select? C

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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An electronics firm is planning to manutacture a new handheid gaming device tor the preteen market The data have been estimated tor the product Assuming a negligible market (salvage) value tor the equipment at the end of tive years, determine the breakeven annual sales volume for this product. E Click the icon to view the data estimated for the product A Click the icon to view the interest and annuity table for discrete compounding when i= 15% per year. The breakeven annual sales volume is 5000 units. (Round to the nearest whole number) More Info Sales price $12.50 per unit Equipment cost Ovorhoad cost Operating and maintenance cost Production lime per 1,000 units Study period (planning horizon) $200,000 $50.000 per yoar $25 per operating hour 100 hours 5 years 15% per year MARR
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