**Project Estimates Overview****Most likely estimates for a project are as follows:**- **MARR (Minimum Acceptable Rate of Return):** 12% per year- **Useful life:** 14 years- **Initial investment:** $5,500- **Receipts – Expenses (R – E):** $1,000/year**Interactive Elements:**- **Graph Icon:** Click to view the relationship between the present worth (PW) and the percent change in parameters.- **Table Icon:** Click to view the interest and annuity table for discrete compounding when the MARR is 12% per year.**Questions for Analysis:**(a) Determine whether the statement, "An initial investment of $7,150 keeps the investment economical," is true or false.- ○ True- ○ False(b) To which variable is the PW most sensitive?- ○ A. Useful life- ○ B. Receipts – Expenses- ○ C. Initial Investment

Initial Investment = 5500R-E = 1000 per yearn = 14,r = 12%

Answered: Most likely estimates for a project are…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Incorrect Question 8 When calculating the Break Even Analysis, one needs to subtract the FW of the cash inflows from the PW of the cash outflows. True False
engineering econ
a. The PW of the Gas Heating Option is b. The PW of the Geothermal Heating Option is c. The lower cost alternative is the geothermal heating option
Using Incremental with EUAW analysis find the best alternative, MARR = %10. should use Excel and show your equations seperately, see below example: [A Benefit - [IC (A/P, i%, n) - Salvage (A/F, i, n)] + A Cost+ G Cost (A/G, i, n)] Data B C A First Cost $2,300,000 $2,780,000 $2,540,000 Salvage Value $82,000 $118,000 $97,000 Annual Benefit $580,000 $670,000 $650,000 M&O $65,000 $78,000 $71,000 M&O Gradient $11,000 $15,000 $12,500 Useful Life, Years 9 9 9 You - ZOOM
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Q1 DRAW DETAILED CASH FLOW DIAGRAM SHOWING ALL VALUES & SYMBOLS FOR THE FOLLOWING CASE. A project of 14-year lifecycle, started with an investment of (25,000 JD); under MARR=8% and expecting to have the following cash flows: • A revenue of geometric increment (g-7%) starting by (3,000) from the end of (year 3) up to end of (year 12). • A uniform income equal to (500 JD) starting from end of (year 1) up to end of project. • A sale amount of (5,000 JD) at end of (8). Expenses of decreased Geometric gradient (g-5%) series by (600 JD) from end of (year 1) up to end of year (10). Salaries of annual uniform amounts (500 JD) from end of (year 1) up to end of (year 12). • Maintenance of project of an amount of (3,000 JD) at end of (year 6) • Salvage value (5,000 JD) of the project at end of (year14). when you solve it quickly I give you 3 like frome my account and friends account
The required investment cost of a new, large shopping center is $49 million. The salvage value of the project is estimated to be $20 million (the value of the land). The project's life is 17 years and the annual operating expenses are estimated to be $14 million. The MARR for such projects is 22% per year. What must the minimum annual revenue be to make the shopping center a worthwhile venture? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 22% per year. To make the shopping center a worthwhile venture, the minimum annual revenue must be $ million per year. (Round to three decimal places.)
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