Q1:A person wants to have (5000 CU) pay for his education at the end of each year for (6 years). If the bank rate o interest is (11.5%), how much money has to be deposit at present. Q2:A company invests in one of three alternatives, the life of all alternatives is estimated to be (5 years) with the following investments, annual returns, and salvage value: Alternatives 3 200000 CU 70000 CU 50000 CU Details Alternatives 1 Alternatives 2 Investment 150000 CU 175000 CU Annual equal return 60000 CU 70000 CU 15000 CU 25000 CU Salvage value Determine the best alternative based on Net Present Worth Comparison (NPW) by assuming i=10%.

Q1:A person wants to have (5000 CU) pay for his education at the end of each year for (6 years). If the bank rate o interest is (11.5%), how much money has to be deposit at present. Q2:A company invests in one of three alternatives, the life of all alternatives is estimated to be (5 years) with the following investments, annual returns, and salvage value: Alternatives 3 200000 CU 70000 CU 50000 CU Details Alternatives 1 Alternatives 2 Investment 150000 CU 175000 CU Annual equal return 60000 CU 70000 CU 15000 CU 25000 CU Salvage value Determine the best alternative based on Net Present Worth Comparison (NPW) by assuming i=10%.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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