QUESTION 10Save AnswerDetermine the capitalized cost of an alternative that has a first cost of $55,000 an annualmaintenance cost of $12,000 and a cost every five years of $20,000.Use an interest rate of11% per year.109,091193,286217,650225,000Save AnswerAn alternative for producing a pesticide will have a first cost of $400,000 and annual costsof $40,000. Income is expected to be $120,000 per year. What is the payback period at0% per year interest?3.5 years4 years4.5 years5 years

(Note:- Since you have posted multiple questions as per our policy we will solve only first question…

QUESTION 10 Save Answer Determine the capitalized cost of an alternative that has a first cost of $55,000 an annual maintenance cost of $12,000 and a cost every five years of $20,000.Use an interest rate of 11% per year. 109,091 193,286 O 217,650 225,000 Save Answer An alternative for producing a pesticide will have a first cost of $400,000 and annual costs of $40,000. Income is expected to be $120,000 per year. What is the payback period at 0% per year interest? O 3.5 years 4 years O 4.5 years O 5 years

QUESTION 10 Save Answer Determine the capitalized cost of an alternative that has a first cost of $55,000 an annual maintenance cost of $12,000 and a cost every five years of $20,000.Use an interest rate of 11% per year. 109,091 193,286 O 217,650 225,000 Save Answer An alternative for producing a pesticide will have a first cost of $400,000 and annual costs of $40,000. Income is expected to be $120,000 per year. What is the payback period at 0% per year interest? O 3.5 years 4 years O 4.5 years O 5 years

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: A firm spent $2 million for new equipment that reduces greenhouse gases in their operations. The…

A: (a): The total expenditure of the firm is $2 million and the process helped to save $14,000 in the…

Q: The following data is available for three different alternatives. Assume an interest rate of 10% per…

A: Present worth, also known as present value or discounted value, is a fundamental concept in…

Q: 1. The example in the previous chapter, National Homebuilders, Inc. evaluated cut-and-finish…

A: The objective of this question is to demonstrate the equivalence of Present Worth (PW) over three…

Q: DuraTech Manufacturing is evaluating a process improvement project. The estimated receipts and…

A: Investment in macroeconomics means gross private domestic investment. This concern is mainly to…

Q: The following data is available for three different alternatives. Assume an interest rate of 2% per…

A: Present worth, also known as present value or discounted value, is a fundamental concept in…

Q: 5. Given: Assume i = 10% per year Alternative 1 Electric Power Alternative 3 Solar Power P6000 P50…

Q: Given the data for three different alternatives in the table below, determine the best alternative…

Q: The survey firm of Layer, Anderson, and Pope (MAP) LLP is considering the purchase of a piece of new…

A: The following values are given in the question:

Q: Brand A 2 years 3 years $13 4 years $17 5 years Which brand should the engineer select if the MARR…

A: Net Present Value calculates the difference between the present value of cash inflows and outflows.…

Q: :[A] { > Incremental analysis ([ B Alternative], [B wins ]): C A company considering 2 different…

A: The objective of this question is to determine which machine, X or Y, would be a better investment…

Q: The cash flows for three mutually exclusive alternatives are given in table below. MARR = 4%. ALB…

A: The term incremental rate of return often refers to a rate of return on an investment that is…

Q: 1 hp = 0.746 kW

A: Given cost of electricity = 0.10 $ per KWH 1 hp = 0.746 kw Total motor Hp = 85

Q: Using the cost data for Project X and Project Y below, conduct a Present Worth Analysis to calculate…

A: Cash flow:The net amount of cash or cash equivalents that enters and exits a business or financial…

Q: Given the data for two different alternatives in the table below, determine the best alternative…

A: Calculate the rate of return (ROR) for each alternative individually.Compare the ROR of each…

Q: If the interest rate, i=10%, the capitalized cost (CC) of the given project whose Cash Flow diagram…

Q: A wood post initially costs P 25, 000 with an installation and miscellaneous expenses of P 7, 500…

A: The annual worth analysis is used when the service life of the alternative is not equal. Because the…

Q: Most likely estimates for a project are as follows. MARR Useful life Initial investment Receipts -…

A: Initial Investment = 5500R-E = 1000 per yearn = 14,r = 12%

Q: An economic evaluation of the following mutually exclusive alternative equipment is being conducted.…

A: An economic evaluation of the following mutually exclusive alternatives is being conducted.since in…

Q: Find the capitalized cost of a present cost of $300,000, annual costs of $35,000 for more than 50…

A: Given present cost = 300000 $ Annual cost = 35000 $ Interest rate = 12 %

Q: Consider two air-conditioning systems with the cash flow estimates as given below. Use AW analysis…

A: Annual worth is the net of all the costs and benefits an investment or asset faces over a year. The…

Q: Using Incremental with EUAW analysis find the best alternative, MARR = %10. should use Excel and…

A: The formula used to calculate the EUAW is;where IC is the initial cost/first cost; A cost is the…

Q: Required information The tabulation of the incremental cash flows between alternatives A and B is…

A: Investment describes the allocation of resources like money, time, or effort into assets or projects…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Introduction

VIEW

Capitalized cost calculation

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Given the following two mutually exclusive alternatives and using repeatability assumption, the correct equation for computing the CW of alternative B is. MARR-15% / year. Capital Investment, $ Market value, $ Annual Expenses, $ Useful life (years) Alternative A -12.000 0 -2,200 10 O CW(15%)-(-40,000-100-(P/A, 15%, 25)+10000(P/F, 15 %. 25))*0.15 O CW(15 %)-(-40,000(A/P. 15%, 25)-1000+10,000(A/F. 15%, 25))/0.15 OCW(15%) - (-40,000(A/P. 15%, 25)-1000+10,000(A/F, 15%, 25))*0.15 OCW(15%)-(-40,000-100-(P/A, 15%, 25 ) +10000 (P/F, 15%, 25))"0.15 Alternative B -40.000 10,000 1,000 25
! 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
1. a) Find the future worth of the following cashliflow. $200 $200 $100 1 2 3 9 S K-5pk 6%- O $100 b) Find the present worth of cash flow in part (a) Equations: F = Px (1+i) ~
Carlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA fines of $20,500 per year. An emission reduction filter will cost $75,000 and have an expected life of 5 years. Carlisle's MARR is 10%/year. Part a What is the future worth of this investment? $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is £10.
Calculate the annual worth uniform series in years 1 through 10 for the following incomes and expenses, If the interest rate is 1596 per year. Expense, S/Year 10,000 2,000 Year Income, S/Y ear 1-6 7,000 7-10 1,000 2,000 Selected Answer: 3 [None Given] Correct Answer: $1,532
Given the data for three different alternatives in the table below, determine the best alternative using the incremental rate of return (∆RoR) analysis. MARR =9%. A B C First cost $15,000 $25,000 $20,000 O &M Cost/ year 1,600 400 900 Benefit/year 8,000 13,000 9,000 Salvage value 3,000 6,000 4,600 Life in years 4 4 4 The better alternative between the second increment (B – C) is:. Group of answer choices Alt. B Alt. C Alt. B or Alt. C Alt. A