The following data for I and I are in format [I,J]. First cost in $: [-150,000, -250,000], Annual Income in $: [20,000, 40,000], Annual Expense in $: [-9,000, -14,000], Salvage value in $: [25,000, 35,000], $ Life in years [3,6]. The interest rate is 15% per year. In comparing alternatives I and J by the present worth method, the value of n that must be used in 1,000 (P/A,1%,n) for alternative I is: Select one: O a. 3 O b. 36 O c. 18 O d. 6

The following data for I and I are in format [I,J]. First cost in $: [-150,000, -250,000], Annual Income in $: [20,000, 40,000], Annual Expense in $: [-9,000, -14,000], Salvage value in $: [25,000, 35,000], $ Life in years [3,6]. The interest rate is 15% per year. In comparing alternatives I and J by the present worth method, the value of n that must be used in 1,000 (P/A,1%,n) for alternative I is: Select one: O a. 3 O b. 36 O c. 18 O d. 6

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: Calculate the future value if present value (PV) = $1014, interest rate (r) = 7.2% and number of…

A: Future Value is what a sum of money invested today will become over time, at a specified rate of…

Q: am. 134.

A: To calculate the total amount in a Lifetime Savings Account (LSA) with annual contributions and a…

Q: For the net cash flow series, (a) determine the number of possible i* values using the two sign…

A: MIRR is defined as modified internal rate of return, it accounts for the positive cash flows with…

Q: For each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear…

A: We are going to calculate Equivalent uniform annual cashflow to answer this question.

Q: Which alternative in the table below should be selected when the MRR = 6% per year? The life of each…

A: The internal rate of return (IRR) is the annual rate of development that a venture is supposed…

Q: Question 3 You spend $2,000 in years 0 thru 5, $2,200 in year 6, $2,400 in year 7 and the amounts…

A: The equivalent annual cost informs an entity on annual cost of operating, and maintaining its assets…

Q: A recently hired chief executive officer wants to reduce future production costs to improve the…

A: Decreasing annual cost (DA) can be calculated by using the following formula.

Q: Street lighting fixtures and their sodium vapor bulbs for a two-block area of a large city need to…

A: Present worth, often referred to as "present value" in financial and economic contexts, is a…

Q: Question (4): A plant has upgraded an emission control valve. The modification costs only $8000 and…

A: The present worth is the dollar worth of future payments as of today. Specifically, for a payment…

Q: The Aberdeen Fixed Rate Fund pays a dividend of 10% per year simple interest, If you invest $240,000…

A: As given simple interest rate = 10% Time = 3years Present worth = $240,000

Q: The factor value of (A/F,109%,5) is 0.16380 a. b. O b. 6.1051

A: The value factor is an attribute of stocks that are chosen by factor investors. The value factor is…

Q: i will 10 upvotes urgent How much money would be accumulated 18 years from now from deposits of…

A: The interest rate is 8%.The total payment to be maid is $15000 and the premium accumulated for 5…

Q: The process for producing a fruit-tree pesticide has a first cost of $200,000 (initial investment at…

A: To find the discounted payback period firstly we compute the net cash flows taking into…

Q: 1. In order to build a new warehouse facility, the regional distributor for Valco Multi-Position…

A: *Hi there , as you have posted multiple questions following our guidelines we will only solve the…

Q: What is the present worth of a $30000 bond that has an interest of 20% per year payable…

A: Given : Interest of bond=20% per year/2=10% Present worth=$30000 Interest rate in…

Question

The following data for I and I are in format [I,J]. First cost in $:
[-150,000,-250,000], Annual Income in $: [20,000, 40,000], Annual
Expense in $: [-9,000, -14,000], Salvage value in $: [25,000, 35,000], $
Life in years [3,6]. The interest rate is 15% per year. In comparing
alternatives I and J by the present worth method, the value of n
that must be used in 11,000(P/A,1%,n) for alternative I is:
Select one:
a. 3
b. 36
O c. 18
O d. 6

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1: Define cash flow & present worth

VIEW

Step 2: Calculate the value of N

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 33 images

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

refer to the photo
Barron Chemical uses a thermoplastic polymer to enhance the appearance of certain RV panels. The initial cost of one process was $126,000 with annual costs of $48,000. Revenues are $80,000 in year 1, increasing by $100O per year. A salvage value of $20,000 was realized when the process was discontinued after 8 years. What rate of return did the company make on the process? The rate of return made by the company is %.
Typed plzzz And Asap
Use the table to determine the discounted payback period using 7% per yearPeriod (n) Cash flow (An) Cost of funds (7%) Ending balance 0 -85,000 0 - 85,000 1 15,000 2 25,000 3 35,000 4 45,000 5 45,000 6 35,000
Only typed Answer
The annual operating costs at an iron ore processing plant have been $140,000 for the last 5 years. The annual interest rate was 8% for the first 3 years and 9% in years 4 and 5. What was the equivalent future amount (in year 5) of the operating costs? $1,011,000 $1,070,500 $951,500 $892,100 $832,600
8uyu
You plan to start saving money by depositing $5000 into your savings account now. Also, you estimate that you will make a deposit of $200 each year for the next 9 ears. What would be the future worth if the investment interest rate is 7% per year? (solve using both tables and rules)
A company developed a new product that is projected to have $575,000 in sales in year one. These sales projections grow by 6% a year through year 8. What is the future value of sales 8 years from now. The company uses a MARR of 6% per quarter. Interperiod cashflows earn prorated interest.
Using the uniform gradient amount (G) and the following series of cash flow, calculate the future equivalent at the end of 2012 with the interest rate of 8% per year? 2009 $1,000 2010 $800 a) $3,500 b) $2,000 c) $1,500 d) $400 Years $600 2011 $400 2012
Calculate the future value if present value (PV) = $1548, interest rate (r) = 9.0% and number of years (t) = 18
P = 10000S = 1000Annual Savings = 4000Annual Maintenance Cost = 3000i = 5%,n = 7 years Which formula below will correctly calculate NPW? -10000 (P/A, 5%, 7) + 1000 (P/F, 5%, 7) + 4000 (P/A, 5%, 7) - 3000 (P/A, 5%, 7) -10000 (A/P, 5%, 7) + 1000 (A/F, 5%, 7) + 4000 - 3000 None of the above -10000 + 1000 + 4000 - 3000 -10000 (A/P, 5%, 7) + 1000 (A/F, 5%, 7) + 4000 + 3000