Req#2: Use Aw analysis to find the best alternative for your company starting one of the following projects. Your company MARR is 9.1 %. Draw the cashflow diagram. Projects data First cost, $ Annual cost, $/year Annual revenue, $/year Life, years Project-1 -85,000 -23, 100 54,000 5 Project-2 -135,000 -11,000 55, 100 10 Project-3 -77,000 -21, 100 37, 100 5 Project-4 -90,000 -26, 100 47, 100 5

Req#2: Use Aw analysis to find the best alternative for your company starting one of the following projects. Your company MARR is 9.1 %. Draw the cashflow diagram. Projects data First cost, $ Annual cost, $/year Annual revenue, $/year Life, years Project-1 -85,000 -23, 100 54,000 5 Project-2 -135,000 -11,000 55, 100 10 Project-3 -77,000 -21, 100 37, 100 5 Project-4 -90,000 -26, 100 47, 100 5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Given the following: Alt. A Alt. B Alt. C Initial Cost $25,000 $40,000 $32,000 Benefits Year 1 5000 2000 6000 Year 2 5500 9000 6000 Year 3 6000 8000 6000 Year 4 6500 7000 6000 Year 5 7200 6000 7000 Salvage Value 4000 8000 6500 MARR 8% Find the best alternative using uniform annual cash flow analysis.
You plan to retire in 15 years. After retirement you will need $20,000 per yearfor 20 years. If interest remains at 8% compounded annually, how much shouldyou deposit each year until retirement? (Note that you will make a total of 15 endof-year deposits, and your first withdrawal will be made at the end of 16th year.)(a) $13,091 (b) $7,811(c) $6,993 (d) $7,232
POSTER PROJECT Individual Project 1 Solved Problem for each Topic Assigned Use Equations Tool for Solutions Provide CASH FLOW DiagramTOPIC : Present Worth, Future Worth and Annual Worth
Google Jnc. went public on August 20, 2004. The initial public offering price was $108 per share. If the stock traded al $490.92 on August 19, 2011. what would the compound annual return on investment be for the investors who purchased the stock and held it for eight years? (a) 354%(b)44.31%(c) 20.89%(d) 71 %
The cash flows for the following four alternatives are given below. You may assume the benefits occur throughout the year rather than just at the end of the year. Based upon payback period, the alternative that should be selected is given by the following option: Year A B C D 0 -$1000 -$900 -$950 -$2783 1 200 100 350 1200 2 200 200 350 1200 3 1200 300 350 1200 4 1200 300 350 1200 5 1200 700 350 1200 Group of answer choices B C A Select none D
4. A rate of return analysis was conducted for the following alternatives, based on the table below. G -20,000 -30,000 -50,000 -80,000 Investment Amount, $ i* ROR, % Revenue, $ 20 35 25 20 10,500 12,500 16,000 4,000 E vs. Machines Compared DN F vs. E G vs F H vs F Ai* Incremental Analysis, 20 65 10 11 a) If the proposals are independent, which should be selected when the MARR is 20% per year. b) If the proposals are mutually exclusive, which should be selected when the MARR is 16% per year. c) If the proposals are mutually exclusive, which should be selected when the MARR is 11% per year. d) Based on the top two i* values, a selection must be made based on the MARR of 12% per year To receive full credit, for part a- d ensure you indicate for each incremental step why they are being eliminated &/or selected.
Problem 3. Calculate the annual worth in years 1 through 10 of the following series of incomes and expenses, if the interest rate is 10% per year. Year 0 1-6 7-10 Income, S/Year 10,000 800 900 Expense, S/Year 2000 200 300
Jane Smart plans to make the following deposits in an account towards cash purchase of a real estate property. 3 EOY Deposit $22,000 1 $6,000 2 $14,000 4 $30,000 5 $38,000 (a) How much money will the account have immediately after the last deposit if the account earns an interest rate of 10% per year? (b) What is the equivalent uniform annual deposit? (a) The amount in the account after the last deposit is $125039 (to the nearest dollar). (b) The equivalent uniform annual deposit is $ (to the nearest dollar)
Q1/a-A project has the following costs and benefits. What is the payback period? Costs (CU) Benefits (CU) year 0 1 2 0 1400 500 0 300 400 300 in each year 0 3-10 year b-Find the resent worth for a factory that has the cash flow as shown in the figure bellow assuming that 10%. 6000CU/year 0 10000CU 1 Investment (CU) Net cash flow (CU/year) Salvage value (CU) Life (year) 2 5000 CU/year 3 4 5 6 Alternative 1 14000 5000 3000 5 789 Q2: A) A contractor is planning to purchase a new bulldozer that cost (6 *10' CU). Calculate the schedule of depreciation and book value at the end of each year for the bulldozer's useful life (6 years) if you know that the salvage value is (300 000CU). B) Find the Present Worth of a future sum of 25 000CU for the period of (7 years), if the interest rate is 10% for the first three years and 2% per month for the years from 4 to 7? Q3: a company owner wants to choose one of two alternatives shown in the table, if the interest rate was 10% and the cash flow is as…
Question 3 For the following cash flows, calculate the annual worth using 10% per year Year 1 2 3 4 Cash Flow, S - 605 100 175 250 325 O A.S 17.23 O B.$ 7.12 OC.S 12.73 O D.S 21.73 O E.S -12.44 A Moving to the next question prevents changes to this answer
An apartment building in your neighborhood is for sale for $500,000. The building has 5 units that can are rented for $750 per month with lease agreements lasting 5 years. Maintenance and other expenses are $15,000 annually. A new high rise office building is scheduled to be built starting in 5 years and the contractor has offered to buy this property for $650,000. What is the internal rate of return for this investment?
Given the following information for an insurance company that writes 24-month term policies: Number of Vehicles 50 100 Policy Group A B Effective Date January 1, 2010 Expiration Date December 31, 2011 July 1, 2010 June 30, 2012 All policies within each group have the same effective date. (a) Calculate the earned car-years for calendar year 2011. (b) Calculate the earned car-years for policy year 2010 evaluated as of December 31, 2010 and as of December 31, 2011. (c) Assume Policy Group B cancels on January 1, 2011. Calculate the 2010 policy year written car- years evaluated as of December 31, 2010 and as of December 31, 2011 for Policy Group B. (d) Assume Policy Group B cancels on July 1, 2011. Calculate the 2010 and 2011 calendar year written car-years for Policy Group B.