The MARR is 15%. Three alternatives are available and the associated cash flow is as follow:YearFirst CostABC$1,700 $2,100 $3,750Annual BenefitUseful Life2$1,000 $1,000 $1,00036Answer the following in this format: 1.231. The payback period for Alternative A is2. The payback period for Alternative B is3. The payback period for Alternative C isBased on Payback period analysis, Alternativeshould be selected. (Enter only the letter)

The objective of the question is to calculate the payback period for each alternative and then…

Answered: The MARR is 15%. Three alternatives are…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Ginger has agreed to a lawsuit settlement of $700,000 with a certain pharmaceutical company. The company has offered options to pay her the awarded money. After discussing the terms with the company, she expects that the company should be able to pay her back within 3-5 years Ginger has developed the following estimates Option A B-Pessimistic CMost likely D.Optimistic Delay period 5 years 4 years 3years Cash Flow Estimates, S $700.000 now $151.000 per year for every year the payment is delayed $173.200 per year for every year the payment is delayed $234.500 per year for every year the payment is delayed If her personal MARR is 15% per year, what is the present worth of each of her options? Option A-PW: Option B- PW: Option C- PW: Option D PW: 2. With respect to her personal MARR, which option should she select?
There are three alternatives X,Y,Z. With 10% MARR, which alternative should be chosen based on following conditions and why? For X, initial cost is $10k, yearly revenue is $6K, Salvage is $1k and useful life is calculated as 2yrs. For Y, initial cost is $15k, yearly revenue is $10K, Salvage is -$2k and useful life is calculated as 3yrs. For Z, initial cost is $12k, yearly revenue is $5K, Salvage is $3k and useful life is calculated as 4yrs.
5) ) Use a MARR of 10%, useful life of 5 years and the Present Worth method to select between the investment alternatives below. Alternative A B Capital investment $90,000 $115,00 Annual revenues less $38,000 $45,000 expenses
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Solve it clearly and correctly please. I will rate.
If ERR > MARR, then IRR > ERR > MARR. A) True (B) False
If you could write out the equation once for me to see where the values should go, that would be helpful. Thank you!
Compare the alternatives below on the basis of their capitalized costs. Assume the MARR is 10% per year, compounded annually Project A Project B Project C First cost ($200,000) ($275,000) ($800,000) Annual income $60,000 $70,000 $80,000 Salvage value $40,000 $60,000 $500,000 Life, years 4 7 infinity
Three different alternatives shown in the table below are being considered by Kal Tech Engineering systems. Assume that alternatives X and Z are replaced at the end of their lives. Data Alternative X Alternative Y Alternative Z Initial Cost $6,000 $1,000 $1,500 Uniform Annual Benefits $810 $125 $ 230 Useful Life in Years 20 ∞ (infinity) 10 MARR (Interest Rate) 12% Refer to the data above. The most desirable alternative is ________. Group of answer choices Do nothing Alt. Z Alt. Y Alt. X Quiz saved at 11:56pm Submit Quiz
None
Given cash flows for two alternatives as shown in table below, choose the most attractive alternative if MARR = 8%. Year 0 1 2 3 through ∞ Alt. A -$42K $3.6K $3.6K $3.6K Alt. B -$54K $4.7K $4.7K $4.7K Group of answer choices Alt. A Alt. B Select neither Select either
The table below summarizes the comparison between four mutually exclusive alternatives using the IRR method. The MARR is 10%. Which alternative should be the base aftemative in the first step of the incremental analysis? Alternative Initial Cost Annual Income IRR P $110,000 $21.500 14.5% Q $130,000 $31,200 20.2% OA Atemative R because it has the lowest initial cost OB. Alternative 5 because it has the largest initial cost OC. Allamative Q because it has the highest IRR D. Alemative P because it has the lowest IRR R $95,000 $20,000 16.5% $ $354,000 $74,000 16.3%

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