Some particulars for a project are as follows. Initial Capital Cost in year 0 ($Mn) Follow-up 'one-off' cost in year 1 ($Mn) Annual Operating Cost ($Mn/yr) Annual Benefits ($Mn/yr) Project Closure Cost, at end of project life ($Mn) Useful Life (years) Interest/Discount rate (percent) 1000 300 10% of capital cost 400 200 20 7 What is the NPV of the project with year 15 as the base year? (your answer must be rounded off to the nearest dollars, i.e., no decimal places)

Some particulars for a project are as follows. Initial Capital Cost in year 0 ($Mn) Follow-up 'one-off' cost in year 1 ($Mn) Annual Operating Cost ($Mn/yr) Annual Benefits ($Mn/yr) Project Closure Cost, at end of project life ($Mn) Useful Life (years) Interest/Discount rate (percent) 1000 300 10% of capital cost 400 200 20 7 What is the NPV of the project with year 15 as the base year? (your answer must be rounded off to the nearest dollars, i.e., no decimal places)

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

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.
1.) What are the 3 assumptions that must be considered when using the LCM approach in comparing PW of differentlife alternatives? Question 2 in image, thank you.
Qutestion 3 Solve this problem using the incremental Benefit - Cost ration with, expected life of 10 years and rate of return of 10% Alternative A Initial cost $50,000 Annual maintenance cost $4,000 Estimated annual benefit $15,000 Alternative B Initial cost $30,000 Annual maintenance cost $3,000 Estimated annual benefit $9,000 a. Select B with B/C=1.14 b. Select B with B/C=1.41 c. Select A with B/C=1.14 d. Reject A with B/C=1.14
please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
For the project with cash flow given below find the most sensitive factor among annual benefit, annual cost and salvage value if the changes by ±20%. Initial investment Annual revenue Annual Cost Salvage Value MARR Life in years Project Rs.2,00,000 Rs.1,00,000 Rs. 40,000 Rs. 50,000 10% 5
A sportswear factory has two alternative machines for producing jerseys. Costs are shown below. Minimum acceptable rate of return is 8%.What is the annual cost for machine Y?
Without using excel