Multiple Alternatives8-12 Consider the following alternatives:Initial cost$300 $600 $20035981Uniform annual benefits41Each alternative has a 10-year useful life and nosalvage value.(a) Construct a choice table for interest rates from0% to 100%.(b) If the MARR is 8%, which alternative should beselected?

Present worth can be calculated bu using following formula Present worth PW = Initial cost + annual…

Answered: Multiple Alternatives 8-12 Consider the…

Multiple Alternatives 8-12 Consider the following alternatives: Initial cost $300 $600 $200 35 981 41 Uniform annual benefits

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: Two sites are being considered for building prefabricated homes. The two sites differ in their…

A: Given Data: MARR=12% Life=20

Q: Problem 4) Given the Alternatives: Initial Cost Annual Benefits Annual Costs (beginning at end of…

A: GIVEN A B Installed cost $45,000 $54,000 Annual Benefit $0 $0 Annual cost $2700 $2850…

Q: Example 6 Use the incremental analysis procedure to select the best alternative. DN is not an…

A: MARR = 10%Study Period = 5 years

Q: The General Hospital is evaluating new office equipment offered by three companies. Cost Annual…

A: When an unequal life alternative is given and we have to perform increment internal rate of return…

Q: a) When the useful lives of alternatives differ, we can use the Guter common disor ) Latest common…

A: Given that the useful life of oven A is 4 years and the useful life of oven B is 6 years. For…

Q: Consider four alternatives A, B, C, and D with their respective annual benefits, disbenefits, costs…

A: B = Benefit -Disbenefits C = Costs -Savings There are two criteria. 1) Absolute criteria (B-C) = We…

Q: A $1000 first year, then increasing $575 per year B C D $100 first year, then increasing $500 per…

A: We are provided with the initial and annual costs of 4 alternatives and we need to derive choice…

Q: A bakery needs to replace its old oven that has broken. It is considering the following options. Use…

A: Given Oven A Oven B Initial cost $4500 $7000 Annual operating cost $700 $500 Salvage…

Q: The following three mutually exclusive alternatives have no salvage value after 10 years. A B…

A: Step 1: Understand the Table StructureBegin by understanding that the table asks for ranges of…

Q: Five alternatives are being evaluated by the incremental rate of return method. Initial investment |…

A: Incremental income investigation is utilized to choose better or totally unrelated other options,…

Q: ТР AP MP a 25,000 500 80 38,500 b d 44,500 e 300 140 200 200 51,300 h i

A: The production function is a mathematical representation of the relationship between the quantity of…

Q: Two mutually exclusive alternatives are available. If the interest is 15%, select the best…

A: Given, Two Alternatives : Alternative 1 and Alternative 2Rate of interest : 15% i.e. 0.15

Q: The following data is available for three different alternatives. Assume an interest rate of 2% per…

A: Present worth, also known as present value or discounted value, is a fundamental concept in…

Q: The General Hospital is evaluating new office equipment offered by three companies. Cost Annual…

A: When an unequal life option is provided and we have to perform increment IRR analysis then cash flow…

Q: |3| 16. Use incremental analysis to select the best altematives using Benefit- Cost ration E F A B…

A: A benefit–cost ratio is an indicator, used in cost–benefit analysis, that attempts to summarize the…

Q: Use Incremental ROR Analysis to select the best project. Question 1 1 A B D E Cost $4000 $2000 $6000…

A: Given cash flow

Q: Consider four mutually exclusive alternatives: A B C D Cost $65 $55 $25 $80 Uniform annual benefit…

A: Payback period is a financial metric used in economics to determine the length of time it takes to…

Q: $10K b 1 2 $900 $1,000 3 $800 4 $700 $600 X O X= {10,000 - 1,000(P/A, 4%, 6) +100(P/G, 4%, 6)} (F/P,…

A: In a cash flow series the arithmetic gradient rises or falls by a constant amount. The cash flow…

Q: Auburn Recreation and Parks Department is considering two mutually exclusive proposals for a new…

A: Given,Alternative DesignSeat CapacityAnnual BenefitAnnual CostRequired…

Q: A manufacturer of diaphragm seals has identified the cash flows shown for manufacturing and sales…

A: We will use the concepts such as No return payback, net annual revenue to answer this question.

Q: Each of the three alternatives shown has a 5-year useful life. MARR is 10%, a) Using FW,…

A: For alternative AFirst cost=$650Annual benefit=180For alternative BFirst cost=$500Annual…

Q: PARAMETERS МEA 1 Investment Cost 1,500,000 Annual Service Benefit 200,000 Annual Insurance Benefit…

A: i'm assuming 10% as interest rate

Q: The following data is available for the three different alternatives (X,Y,and Z).Using Present Worth…

A: The concept of the time value of money says that the amount invested today will worth more than the…

Q: The following three mutually exclusive alternatives are to be compared using the present worth…

A: Given first cost of alternative X = 48000 Annual cost = 10600 Annual benefits = 36000 Salvage value…

Q: Example 3: Applying present worth when useful lives are equal Interest: 8%; N = 6 years Alternatives…

A: By applying the present value when the best alternative will be chosen by comparing the present…

Q: ΕΟΥ 0 1-10 10 inflow 0 $2700 $4000 Project A outflow $10,000 $300 0 inflow 0 Project B $3500 $5000…

A: The simple payout method is the simplest method for evaluating a project. It is calculated by…

Q: A local government in Virginia is considering three different alternatives for a sewage treatment…

A: The benefit-cost ratio (BCR) is used in a cost-benefit analysis to characterise the overall…

Q: A contractor must choose between buying or renting a crane for the duration of a 5 year construction…

A: Given:- MARR=8% or 0.08 Crane cost=$520,000 Maintenance cost=$210,000 Crane renting=$310000 Please…

Q: A Cost $4000 $2000 $6000 $1000 S9000 Annual benefit 639 410 761 117 750 Useful life, in years 20 20…

A: MARR=6%

Q: Three alternatives are considered for project execution by a construction firm. The following cash…

A: Given, Three alternatives : Alternative A, Alternative B and Alternative C The Cashflow is given as…

Q: None

A: Present Value of the Annuity: The present value of the annual benefit ($8,000) Here are the…

Q: The following estimates (in $1000 units) have been developed for a security system upgrade at…

A: The formula for conventional B/C ratio, Here, Bis present/future/annual worth of benefits, D is…

Q: Consider the following alternatives: Initial cost $10,000 $15,000 $20,000 Uniform annual 1000 1762…

A: Given information 3 projects A,B and C Project A Initial cost=$10000 Annual benefit=$1000 Life=…

Q: The estimates for a project appear in the following table: Dear optimistic most likely pessimist…

A: Optimistic estimation Fixed cost=250000, Annual profit=20000, N=30 Most likely estimation Fixed…

Q: Do not use chatgpt.

A: Given:- MARR: 10%- Useful life of all alternatives: 6 yearsStep 1: Calculate the Present Worth (PW)…

Q: What is the best alternative using incremental Analysis? Use MARR = 15% A B C Capital Investment $…

A: Incremental Analysis Approach Assuming MARR=15% Formula= (Annual benefit-Cost)*PVAF+Salvage…

Q: Consider the four mutually exclusive alternatives. Each alternative has 10 years useful life and no…

A: Since the time value of money (i=0) is not considered here so this is a case of simple payback…

Q: 5. Find best alternative using Benefit-Cost analysis method Useful Life MARR Project 50years 10%…

A: The formula for the benefit-cost ratio is shown below,

Q: 2. As the supervisor of a facilities engineering department, you consider mobile cranes to be…

A: Assessing capital expenditures or, in cases where numerous choices are mutually exclusive, choosing…

Q: (Problems 27 to 29) Use the benefit-cost method to determine which of the alternative bridges below…

A: Hi! Thank you for the question. As per the honor code, We’ll answer the first question since the…

Q: Compare the following alternatives on the basis c heir capitalized costs at i= 8% per year and selec…

A: Salvage value is the estimated resale value of an asset at the end of its useful life. It is…

Q: Each of the five alternatives has 20-year useful lives. If the MARR is 8%, use incremental rate of…

A: We have given the multiple revenue alternative and their internal rate of return values. Before…

Q: 3- Which of the following mutually exclusive projects is the best alternative using the incremen…

A: When we have multiple alternatives then the incremental benefit-cost ratio needs to be calculated to…

Q: Q2) A company invests in one of three altematives which has the cash flow as represent in the table…

A: Details Investment Amount Revenue Cost Purchasing cost Salvage Value Life Project 1 2200000 400000…

Question

Multiple Alternatives
8-12 Consider the following alternatives:
Initial cost
$300 $600 $200
35
981
Uniform annual benefits
41
Each alternative has a 10-year useful life and no
salvage value.
(a) Construct a choice table for interest rates from
0% to 100%.
(b) If the MARR is 8%, which alternative should be
selected?

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

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

Hand written solutions are strictly prohibited
Q#2 Graph the EUAC or EUAB of the following two mutually exclusive alternatives. Use interest rate from 0% to 100% Initial cost Annual Cost HP Dell 6800 16,999 1500 1800 Annual Benefits 4000 5500 Salvage Value Useful Life in years 1000 35000 4 8
Given the following: Alt. A Alt. B Alt. C Initial Cost $25,000 $40,000 $32,000 Benefits Year 1 5000 2000 6000 Year 2 5500 9000 6000 Year 3 6000 8000 6000 Year 4 6500 7000 6000 Year 5 7200 6000 7000 Salvage Value 4000 8000 6500 MARR 8% Find the best alternative using uniform annual cash flow analysis.
A city is planning to renovate their current facility with hi-tech computerized systems. Four plans are proposed by the engineers. Each plan will save $950,000 annually but their cost is different. The benefits will last for 30 years. Based on a benefit-cost analysis what should the agency do, if i = 10%? Initial Cost Annual O & M A $7,250,000 $90,000 B D E F C $6,000,000 $6,500,000 $7,500,000 $8,000,000 $5,500,000 $110,000 $140,000 $80,000 $150,000 $60,000 FOCUS
Answer the problems on the basis of the above graph and the most likely estimates given as follows: If the profit (R−E) is decreased by 5%, this projectis not profitable. (a) True (b) False.
Please handwriten solution
Qutestion 3 Solve this problem using the incremental Benefit - Cost ration with, expected life of 10 years and rate of return of 10% Alternative A Initial cost $50,000 Annual maintenance cost $4,000 Estimated annual benefit $15,000 Alternative B Initial cost $30,000 Annual maintenance cost $3,000 Estimated annual benefit $9,000 a. Select B with B/C=1.14 b. Select B with B/C=1.41 c. Select A with B/C=1.14 d. Reject A with B/C=1.14
Q1).Using AW method compare between the following alternatives: Operating and maintenance Alt. F.C. Income at the Annual nd S.V. Useful life i. end of 2 yearIncome A 35000 3500 2800 7000 8 8% B. 32000 1500 4700 2500 8%
A series of alternative projects have the following series of discount annualized costs and benefits. Which project is your best choice? What is your second-best choice? Please list your calculation details. Project Alternative A B C D E Present Value of Benefits 100 160 90 70 180 Present Value of Costs 60 90 40 30 120
slove it by excel and please write the formula because i need to write it in my excel again
Without using excel
FIRST COST ANNUAL COST SALVAGE VALUE ANNUAL INTEREST RATE STUDY PERIOD Power Line 20,000 1,950.90/month × 12= 23,410.8/year Solar 25,000 X 7= 125,000+10,000= 135,000 3,000/year 0 3.5% 25 ALTERNATIVE A: A solar panel costs 25,000. 7 solar panels are needed in a company. The installation fee is 10,000 and will have a useful 25 years with no salvage value. The maintenance per year is 5,000. The annual interest rate for solar panel is 1.5%. 0 1.5% 25 ALTERNATIVE B: A new power line will cost 20,000, with power costs expected to be 1,950.90 per month. The annual increase rate of electric bill is about 3.5%. Which alternative should be selected on the basis of a future worth analysis? Illustrate the cash flow diagram. USE MS EXCEL IN COMPUTATION and SHOW THE SOLUTION PROPERLY.