Q1: Three mutually exclusive alternatives X, Y, and Z are being considered as a permanentsolution to an assembly line bottleneck. The data are: [6 marks]Initial CostaAnnual BenefitUseful Life (years)YZ$10k$15k$20k1.6k51.5k1.9k1015⚫ As a prefix in SI units, k is an acronym for kilo, meaning 1,000.Assuming zero salvage value and an annually compounded interest rate of 8% per year,which alternative should be selected based on the AW-criterion. ( Show detailedcalculations).Q2: Find out the capitalized cost of a certain investment based on the following:[4 marks]1. An initial deposit of $100,0002. Recurring payments of $10,000 each 6 years starting by the end of the first year forinfinity.3. Annual uniform payments of $2,000 starting by the end of year 10 for infinity.Use Interest rate = 6%

Answered: Q1: Three mutually exclusive…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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please answer all with complete solution and draw the cash flow diagram,,, do not use an excel please. thank you....
! Required information The annual revenues associated with several large apartment complexes are $225, $225, $275, $375, $75, and $125 for years 0, 1, 2, 3, 4, and 5, respectively. Determine the net cash flow and whether each cash flow series is conventional or nonconventional. The costs for years 0, 1, 2, 3, 4, and 5, respectively, are provided in the problems. When the cash flow is zero, assume it to be negative. Year 0 Cost, $ -1500 1 -450 The cash flow is conventional The Cumulative cash flow is 0 1 Year Cumulative CF, $ 2 -300 2 3 -400 3 4 -125 4 5 -400 5
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