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Deficit refers to the situation when the expected or earned amount is less than the needed sum value of money in order to pay off any expense or debt.
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- ( 1 contractor want to invest his money in on of project A or B if you know that the interest rate is 10%, choose the best alternative A or B using net present worth method? A 120 000 CU 15 000 CU/YEAR 10 000 CU/YEAR 12 000 CU 12 YEARS 3000 CU Initial investment Annual revenue Annual expense Salvage value Project life Cost of machines replaced every 3 حلقه میشو الباب diq Naama years B 135 000 CU 17 000 CU/YEAR 11 000 CU/YEAR 20 000 CU/YEAR 6 YEARS 3500 CUAn investor is considering the development of a recreational complex with the following relevant data initial cost is P54M estimated life is 15 years salvage value is P2 5M yearly costs for operations and maintenance is P3 5M annual property tax is 4% of first cost insurance premium (payable at the start of the year) is 2% of first cost expected yearly revenue is P15M If the investor applies a 10% MARR determine the annual worth of this ventureQ5: The machine using PW with first cost $75000, savings the annual operating cost $11000 per year and salvage value $55000 at the end of 4 years find the (P/F, i*,6).
- Compute the payback statistic for Project A if the appropriate cost of capital is 9 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.) Project A Time: 0 1 2 3 4 5 Cash flow: −$2,100 $790 $810 $740 $520 $320 Payback: ? YearsPlz answer asapD-76 A new chemical remediation tank is needed. C'urrent lechnology tanks, which cost $150,000, musI Ie drained and treated every 2 years at a cost of $30,000; the tanks will last 10 years, and ench will have a salvage value of 5% of first cost. A tank with new technology has just come on the market. T'hore are no periodic maintenance costs, and a tank will last 20 years. If the new tanks cost $325,000, what minimum salvage value, as a percentage of lirst cont, would be required for this technology to be a betler option? Use a 12% interest rate. (a) 10% (b) 36% (c) 57% (d) 72%
- A proposal to reduce oil spill on MX5 has a B-C ratio of 1.5. The conventional annual worth of benefits is P560,000 and the disbenefits is P100,000. What is the first cost of the project if the interest rate is 6% per year and the project is expected to have a 20-year life? ANSWER: Blank 1 Blank 1 Add your answerS7.33 Tim Smunt has been asked to evaluate two machines. After some investigation, he determines that they have the costs shown in the following table. He is told to assume that: a) the life of each machine is 3 years, and b) the company thinks it knows how to make 12% on investments no more risky than this one. Machine A Machine B Original cost Labor per year Maintenance per year Salvage value $10,000 2,000 $20,000 4,000 1,000 7,000 4,000 2,000 Determine, via the present value method, which machine Tim ce should recommend.Solve it correctly please. I will rate.
- Q.1. special for extension rice in initial cost of 50,000 their recovery period conpute the dissipation amount if the 3rd year and the PV at the end of 5th year of life by each of these methods method A is SL method and method B is DD method the SV is 60,000G.3. A proposed geothermal energy project has an initial cost of $1,000K. In addition it will re- quire an infinite series of periodic maintenance expenditures at five-year intervals following the first maintenance expenditure at EOY 2. Find the equivalent annual cost with n oo and i = 88 percent per year. EOY Expenditure Initial cost $1,000K Periodic maintenance 140K Same 200K Same 260K 17 Same 320K etc. to oo etc, to oo (Ans. NAW = $137,510K/yr) %3D O2725! Required information An engineer calculated the PW values for four alternatives to develop a remotely controlled vibrations control system for offshore platform applications. The results in the table use a MARR of 14% per year. Alternative Life, n, years PW over n years, $ PW over 6 years, $ PW over 12 years, $ || 3 16.08 26.94 39.21 J 14 31.12 15.78 60.45 K 12 -257.46 -653.29 -257.46 L 6 160 160 160 Determine which alternative(s) should be selected if the projects are independent. Alternative I is (Click to select) ✓ alternative J is (Click to select) (Click to select) ✓ alternative K is (Click to select) ✓ and alternative L is