project. The initial cost of the project is $120,000. It is expected that revenues will be $18,000 annually. There will be annual operating expenses of $17,000. At the end of the 9-year life of the project, there is a salvage value of $25,000. Use a MARR of 5%. Perform a PW (present worth) analysis. What is the PW of the project? Question 2 Part A: Choose the correct Cash Flow Diagram for this scenario from the following choices.

project. The initial cost of the project is $120,000. It is expected that revenues will be $18,000 annually. There will be annual operating expenses of $17,000. At the end of the 9-year life of the project, there is a salvage value of $25,000. Use a MARR of 5%. Perform a PW (present worth) analysis. What is the PW of the project? Question 2 Part A: Choose the correct Cash Flow Diagram for this scenario from the following choices.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Problem 06.010 Annual worth and capital recovery calculations U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless steel round bars that is expected to cost $17.00 million now and another $10 million 1 year from now. If total operating costs will be $1.800 million per year starting 1 year from now, and the estimated salvage value of the plant is virtually zero, how much must the company make annually in years 1 through 10.00 to recover its investment plus a return of 18.00% per year? (Round the final answer to three decimal places.) The company must make $ million annually in years 1 through 10.00 to recover its investment plus a return of 18.00% per year.
A firm is considering the purchase of a new machine to increase the output of an existing production process. If each of these machines provides the same service over their useful lives and the MARR is 12%, which machine would be selected on the basis of PW and apply repeatability assumption? Alternative A Alternative B Alternative C Initial Investment $75,000 $20,435 $75,000 $16,212 $100,000 $22,675 Net Annual Revenues Market Value at $15,000 $12,000 $25,000 End of Useful Life Useful Life 5 years б years 10 years
Without using excel
4. Solve the given question and give the correct answer.
am. 175.
ECONOMICS (UPVOTE WILL BE GIVEN. CHOOSE THE CORRECT ANSWER. NO LONG EXPLANATION NEEDED. BOX THE FINAL ANSWER.) If the present worth of a project is given and you want to know its annual equivalent value, which working equation shall you use? A. PW = AW(P/A, i%,N) B. AW(%) = R – E – CR(i%) C. AW = PW(A/P, i%,N) D. AW = PW(P/A, i%,N)
Answer is -$3, 085,828 ( please show your work)
Calculate the capitalized cost of a project that has an initial cost of P3500000 and an additional investment cost of P950000 at the end of every 8 years. The annual operating cost will be P120000 at the end of every year for the first 5 years and P150000 thereafter. In addition there is expected to be a replacement cost of P350000 every 12 years. The interest rate is 12%. Also show the cash flow diagram.
The following data applies for example problems 8.1 through 8.3. A company is considering the purchase of either machine A or machine B. machine A machine B initial cost $80,000 20 years $20,000 $18,000 per year $100,000 25 years $25,000 $15,000 per year for the first 15 years $20,000 per year for the next 10 years estimated life salvage value other costs The interest rate is 10%, and all cash flows may be treated as end-of-year cash flows. Assume that equivalent annual cost is the value of the constant annuity equal to the total cost of a project. The equivalent annual cost of machine B is most nearly (A) $21,000 (B) $21,500 (C) $23,000 (D) $26,500
A man is considering putting up his own enterprise, where an investment of 800,000 will be required and will take 15 years to recoup. He estimates his annual sales at 800,000 along with the following operating costs. Materials =160,000/ yearLabor = 280,000/ yearOverhead = (40,000 + 10% of sales)/ yearSelling Expense = 60,000/ yearThe man will give up his regular job paying 216,000 Php per year and devote all his time to the operation of his business, this will result in decreasing his labor cost by 40,000 per year, material cost by 28,000 per year and overhead cost by 32,000 per year. If the man expects to earn at least 20% of his capital, should he invest? Solve using a) Rate of return method b) annual worth method c)present worth method d)equivalent uniform annual cost method