An economic evaluation of the following mutually exclusive alternatives is being conducted. Since they have different service lives, repeatability is assumed and an analysis period of 18 years is used. The MARR is 10%.Initial costAnnual revenuesService life (years)Alternative A$30,000$15,0006Alternative B$120,000$40,000Answer the following two questions:(1) The net AW of Alternative B over the analysis period is (select the closest value)A. $60,837B. $25,368C. $10,737D. $19,163(2) The net PW of Alternative B over the analysis period is (select the closest value)A. $88,056B. $208,056C. $110,360D. $157,164

Answered: Image /qna-images/answer/e11a6dc6-04c8-4575-b41e-c276053c7cfa.jpg

Service life (years) Answer the following two questions: (1) The net AW of Alternative B over the analysis period is (select the closest value) O A. $60,837 B. $25,368 9 C. $10,737 D. $19,163 (2) The net PW of Alternative B over the analysis period is (select the closest value) A. $88,056 B. $208,056 C. $110,360 D. $157,164

Service life (years) Answer the following two questions: (1) The net AW of Alternative B over the analysis period is (select the closest value) O A. $60,837 B. $25,368 9 C. $10,737 D. $19,163 (2) The net PW of Alternative B over the analysis period is (select the closest value) A. $88,056 B. $208,056 C. $110,360 D. $157,164

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

2. Three mutually exclusive design alternatives are being considered. The estimated sales and cost data for each alternative are given on the next page. The MARR is 20% per year. Annual revenues are based on the number of units sold and the selling price. Annual expenses are based on fixed and variable costs. Determine which selection is preferable based on AW. State your assumptions. A в Investment cost Estimated units 60,000 20,000 $50,000 18,000 CLA to be sold/year Unit selling price, $/unit Variable costs, $/unit Annual expenses (fixed) Market value Useful life $4.40 $4.10 $1.00 $1.40 $1.15 $15,000 $30,000 $26,000 $20,000 10 years $15,000 10 years B PUBLICATIO 10 years
What is the excel equation to calculate the values in the selected row exactly as they are?
Please no written by hand and no image
a. Find the breakeven market value.b.Find the breakeven annual expense.C.Is the decision more sensitive to changes in market value or annual expense? How doyou know?
It refers to the number of years that the original capital investment for the project will take to be paid by its annual earnings O A. Profitability Index O B. Payback Period O C. Rate of Return O D. MARR
v
A corporation uses a type of motor truck which costs P 250,000, with life of 2 years and final salvage value P 40,000. If money is worth 4% and using the annual cost method, what should be the life, in years, of another type of truck for the same purpose whose that cost P 312,614 with final salvage value P 50,000? Select one: a. 2.5 b. 4 c. 3.5 d. 3
Kaneb is evaluating two alternative pipeline welders. Welder A costs $310,000, has a /-year life, and is expected to generate net cash inflows of $78,000 in each of the 7 years. Welder B costs $320,000, has a 5-year life, and is expected to generate annual net cash inflows of $68,900 in each of the 5 years. Kaneb's cost of capital is 16%. Using the equivalent annual annuity method, which alternative should be chosen and what is its NPV?
You have been asked to perform a sensitivity analysis on a plant modernization plan. The initial investment is $30,000. Expected annual savings is $13,000. Salvage value is $7,000 after a 7 year planning horizon. The MARR is 12%. Determine the AW if the annual savings change by the following percentages from the initial estimate: b. -80%c. -60%d. -40%e. -20%f. +20%g. +40%h. Determine the percentage change in net annual savings that causes a reversal in the decision regarding the attractiveness of the project
kuzukuzu12121@outlook.com just sent here I NEED EXCEL FİLE. Determine the NPW, AW, FW and IRR of the following engineering project. Initial Cost ($400,000) The Study Period 15 years Salvage (Market) Value of the project 15% of the initial cost Operating Costs in the first year($9,000) Cost Increase 3% per year Benefits in the first year $40,000 Benefit Increase 9% per year MARR 8% per year Is the Project acceptable? WHY?
Subject:eco