ng two solar systems for her house water heating requirements. Her MARR is 20% per year. Alternative P Alternative Q First cost, $ 18,000 35,000 Annual operating cost, S/year 4,000 3,600 Salvage value, S 1,000 2,700 Life, years 3. 6. You need to assist her by finding the incremental cash flow over an appropriate analysis period. The equation that should be use to find the rate of return for the incremental cash flow is: O0--17,000 + 400(PIAL6) + 17,000(P/F13) + 1700(P/F,6) O0-17,000 + 400(P/A,6) - 17,000(P/FL3) + 1700(P/F,6) O-17,000+ 400(P/F6)+ 17,000(P/AL3) + 1700(P/F1,6) 6-17,000 + 400(P/AL6) - 17,000(P/AL.3) - 1700(F/AL6)

ng two solar systems for her house water heating requirements. Her MARR is 20% per year. Alternative P Alternative Q First cost, $ 18,000 35,000 Annual operating cost, S/year 4,000 3,600 Salvage value, S 1,000 2,700 Life, years 3. 6. You need to assist her by finding the incremental cash flow over an appropriate analysis period. The equation that should be use to find the rate of return for the incremental cash flow is: O0--17,000 + 400(PIAL6) + 17,000(P/F13) + 1700(P/F,6) O0-17,000 + 400(P/A,6) - 17,000(P/FL3) + 1700(P/F,6) O-17,000+ 400(P/F6)+ 17,000(P/AL3) + 1700(P/F1,6) 6-17,000 + 400(P/AL6) - 17,000(P/AL.3) - 1700(F/AL6)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

None
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
ChemCo Enterprises is the manufacturer of Ultra-Dry, a hydrophobic coating that will waterproofanything. Over a 5 year period, the costs associated with the pilot test product line were as follows: first cost of $43,000 and annual costs of $18,000. Annual revenue was $40,000 and used equipment was salvaged for $4,000. What rate of return did the company make on the product?
Fairmont Industries primarily relies on 100% equity financing to fund projects. A goodopportunity is available that will require $250,000 in capital. The Fairmont owner can supply themoney from personal investments that currently earn an average of 8.5% per year. The annualnet cash flow from the project is estimated at $30,000 for the next 15 years. Alternatively, 60%of the required amount can be borrowed for 15 years at 9% per year. If the MARR is the WACC,determine which plan, if either is better. This is a before-tax analysis
Concurris Prototyping is committed to using the newest and finest equipment in its labs. Accordingly, Wilma, a senior engineer, has recommended that a 2-year-old piece of precision measurement equipment be replaced immediately. She believes it can be demonstrated that the proposed equipment is economically advantageous at a 15%-per year return and a planning horizon of 5 years. Perform the replacement analysis using the annual worth method, a 5-year study period, and the estimates below. Was Wilma correct? Equipment Original purchase price, $ Current market value, $ Remaining life, years Estimated value in 5 years, $ Salvage value after 15 years, $ AOC, $ per year Current -30,000 15,000 5 7,000 -11,000 The AW of the defender is $- challenger is $- Wilma ((Click to select)) correct. Proposed -40,000 -- 15 10,000 5,000 -3,000 and the AW of the
Equipment needed at Valero Corporation refinery for the conversion of corn stock toethanol, a cleaner burning gasoline additive, will cost $175,000 and have net cashflows of $35,000 the first year, increasing by $10,000 per year over the life of 5 years.Develop a spreadsheet chart that plots AW vs interest rate to show where (what interestrate) the project switches from financially justified to unjustified. Use AW as the verticalaxis of the chart, and interest (i) as the horizontal axis of the chart. Use a range ofinterest rates spanning from 10% to 20%, and use increments of 1%. Label both axesand use a title for the chart.
ces Consider two air-conditioning systems with the cash flow estimates as given below. Use AW analysis to dete economic decision to MARR values of 4%, 6%, and 8% per year. System Air-Conditioning System 1 Air-Conditioning System 2 First cost, $ -9,000 -13,000 AOC, $ per year -500 -175 Salvage value, $ -100 -300 New compressor and motor cost at midlife, $ -1,400 -2,900 Life, years 8 12 The annual worth of air-conditioning system 1 when the MARR is 4% is $ The annual worth of air-conditioning system 2 when the MARR is 4% is $ The annual worth of air-conditioning system 1 when the MARR is 6% is $[ The annual worth of air-conditioning system 2 when the MARR is 6% is $1 The annual worth of air-conditioning system 1 when the MARR is 8% is $ The annual worth of air-conditioning system 2 when the MARR is 8% is $
Concurris Prototyping is committed to using the newest and finest equipment in its labs. Accordingly, Wilma, a senior engineer, has recommended that a 2-year-old piece of precision measurement equipment be replaced immediately. She believes it can be demonstrated that the proposed equipment is economically advantageous at a 15%-per year return and a planning horizon of 5 years. Perform the replacement analysis using the annual worth method, a 5-year study period, and the estimates below. Was Wilma correct Equipment Current Proposed Original purchase price, $ Current market value, $ -30,000 -42,000 15,000 Remaining life, years 5 15 Estimated value in 5 years, $ 7,000 10,000 5,000 -3,000 Salvage value after 15 years, $ AOC, $ per year The AW of the defender is $- Wilma (Click to select) correct. -14,000 and the AW of the challenger is $-
please answer all with complete solution and draw the cash flow diagram,,, do not use excel please. thank you....
Most likely estimates for a project are as follows. MARR Useful life Initial investment Receipts - Expenses (R-E) 10% per year 9 years $5,000 $1,200/year 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 10% per year. (b) To which variable is the PW most sensitive to? OA. Receipts - Expenses OB. Usefule life OC. Initial Investment (a) Determine whether the statement "An initial investment of $6,000 keeps the investment economical." is true or false. O False O True