Most likely estimates for a project are as follows. Click the icon to view the relationship between the PW and the percent change in parameter. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year. MARR Useful life Initial investment Receipts Expenses (R-E) (a) Determine whether the statement "An initial investment of $5,250 keeps the investment economical." is true or false. ○ True ○ False (b) To which variable is the PW most sensitive to? OA. Usefule life OB. Initial Investment OC. Receipts Expenses 15% per year 10 years More Info $5,000 $1,400/year More Info Y-Axis, PW(15%) C $5,000 Initial Investment (R-) Useful life $4,000 $3,000- $2.0 $1,000- 50 -40% -20% -10% 10% 20% 30% 40% ($1,000) X-Axis (Percent Change in Parameter) Compound Discrete Compounding; -15% Single Payment Present Worth Factor Amount Factor To Find F To Find P Compound Amount Factor To Find F Given A Uniform Series Sinking Present Worth Factor To Find P Fund Factor To Find A Capital Recovery Factor To Find A Given P Given P Given F Given A Given F N FIP PIF FIA PIA A/F AIP 1 1.1500 0.8696 1.0000 0.8696 1.0000 1.1500 2 1.3225 0.7561 2.1500 1.6257 0.4651 0.6151 3 1.5209 0.6575 3.4725 2.2832 0.2880 0.4380 4 1.7490 0.5718 4.9934 2.8550 0.2003 0.3503 5 2.0114 0.4972 6.7424 3.3522 0.1483 0.2983 6 2.3131 0.4323 8.7537 3.7845 0.1142 0.2642 7 2.6600 0.3759 11.0668 4.1604 0.0904 0.2404 8 3.0590 0.3269 13.7268 4.4873 0.0729 0.2229 9 3.5179 0.2843 16.7858 4.7716 0.0596 0.2096 10 4.0456 0.2472 20.3037 5.0188 0.0493 0.1993
Most likely estimates for a project are as follows. Click the icon to view the relationship between the PW and the percent change in parameter. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year. MARR Useful life Initial investment Receipts Expenses (R-E) (a) Determine whether the statement "An initial investment of $5,250 keeps the investment economical." is true or false. ○ True ○ False (b) To which variable is the PW most sensitive to? OA. Usefule life OB. Initial Investment OC. Receipts Expenses 15% per year 10 years More Info $5,000 $1,400/year More Info Y-Axis, PW(15%) C $5,000 Initial Investment (R-) Useful life $4,000 $3,000- $2.0 $1,000- 50 -40% -20% -10% 10% 20% 30% 40% ($1,000) X-Axis (Percent Change in Parameter) Compound Discrete Compounding; -15% Single Payment Present Worth Factor Amount Factor To Find F To Find P Compound Amount Factor To Find F Given A Uniform Series Sinking Present Worth Factor To Find P Fund Factor To Find A Capital Recovery Factor To Find A Given P Given P Given F Given A Given F N FIP PIF FIA PIA A/F AIP 1 1.1500 0.8696 1.0000 0.8696 1.0000 1.1500 2 1.3225 0.7561 2.1500 1.6257 0.4651 0.6151 3 1.5209 0.6575 3.4725 2.2832 0.2880 0.4380 4 1.7490 0.5718 4.9934 2.8550 0.2003 0.3503 5 2.0114 0.4972 6.7424 3.3522 0.1483 0.2983 6 2.3131 0.4323 8.7537 3.7845 0.1142 0.2642 7 2.6600 0.3759 11.0668 4.1604 0.0904 0.2404 8 3.0590 0.3269 13.7268 4.4873 0.0729 0.2229 9 3.5179 0.2843 16.7858 4.7716 0.0596 0.2096 10 4.0456 0.2472 20.3037 5.0188 0.0493 0.1993
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
How would I solve part A and B
?
Thank you..
Transcribed Image Text:Most likely estimates for a project are as follows.
MARR
Useful life
Initial investment
Receipts - Expenses (R-E)
Click the icon to view the relationship between the PW and the percent change in parameter.
Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year.
(a) Determine whether the statement "An initial investment of $5,250 keeps the investment economical." is true or false.
True
O False
(b) To which variable is the PW most sensitive to?
○ A. Usefule life
OB. Initial Investment
OC. Receipts - Expenses
15% per year
More Info
10 years
$5,000
$1,400/year
More Info
Y-Axis, PW(15%)
$5,000
Initial Investment
(R-E)
Useful life
$4,000-
$3,000-
$1,000-
-40%
-20%
-10%
($1,000)
10%
20%
40%
X-Axis (Percent Change in Parameter)
Discrete Compounding; i=15%
Single Payment
Uniform Series
Compound
Amount
Present
Compound
Amount
Present
Sinking
Fund
Capital
Recovery
Factor
Worth Factor
To Find F
To Find P
Factor
To Find F
Worth Factor
Factor
To Find P
Given P
Given F
Given A
Given A
Given F
To Find A
Factor
To Find A
Given P
N
FIP
PIF
FIA
PIA
AIF
AIP
1.1500
0.8696
1.0000
0.8696
1.0000
1.1500
2
1.3225
0.7561
2.1500
1.6257
0.4651
0.6151
3
1.5209
0.6575
3.4725
2.2832
0.2880
0.4380
4
1.7490
0.5718
4.9934
2.8550
0.2003
0.3503
5
2.0114
0.4972
6.7424
3.3522
0.1483
0.2983
6
2.3131
0.4323
8.7537
3.7845
0.1142
0.2642
7
2.6600
0.3759
11.0668
4.1604
0.0904
0.2404
3.0590
0.3269
13.7268
4.4873
0.0729
0.2229
9
3.5179
0.2843
16.7858
4.7716
0.0596
0.2096
10
4.0456
0.2472
20.3037
5.0188
0.0493
0.1993
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