The optimistic, most likely, and pessimistic estimates for a certain investment project are as shown in the accompanying table. MARR = 0.14. Optimistic Most Likely Pessimistic Capital Investment 78000 90000 116000 Net Annual Cash Flow 38000 31000 18000 Market Value 31000 21000 5000 Useful Life 12 9 5 It is thought that the most critical factors are useful life and net annual cash flow. Complete the table below showing the net AW for a combinations of the estimates for these two factors, assuming all other factors to be at their most likely values. Net Annual Cash м Р Useful O 22870 15870 M B 14111 1111 P 14962 C -5038 In the table above, the value of ( A) = A Life In the table above, the value of ( B ) = In the table above, the value of ( C ) =

The optimistic, most likely, and pessimistic estimates for a certain investment project are as shown in the accompanying table. MARR = 0.14. Optimistic Most Likely Pessimistic Capital Investment 78000 90000 116000 Net Annual Cash Flow 38000 31000 18000 Market Value 31000 21000 5000 Useful Life 12 9 5 It is thought that the most critical factors are useful life and net annual cash flow. Complete the table below showing the net AW for a combinations of the estimates for these two factors, assuming all other factors to be at their most likely values. Net Annual Cash м Р Useful O 22870 15870 M B 14111 1111 P 14962 C -5038 In the table above, the value of ( A) = A Life In the table above, the value of ( B ) = In the table above, the value of ( C ) =

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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
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?
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The MARR is 15%. Three alternatives are available and the associated cash flow is as follow: Year First Cost A B C $1,700 $2,100 $3,750 Annual Benefit Useful Life 2 $1,000 $1,000 $1,000 3 6 Answer the following in this format: 1.23 1. The payback period for Alternative A is 2. The payback period for Alternative B is 3. The payback period for Alternative C is Based on Payback period analysis, Alternative should be selected. (Enter only the letter)
Please choose one of the following options. Double check your work. There is no additional information. This is the question and those are your options. PW analysis stands for Present Worth Analysis. It is a term used in engineering economics. What will be the total lifetime for every project if we compare them with PW analysis? Project A has a lifetime of 9 years, project B has a lifetime of 7 years, and project C has a lifetime of 3 years. 9 189 126 27 63
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Two mutually exculsive alternative are being considered for the environmental protection equipment at a petroleum refinary. one of these alternatives must be selected. The estimated cash flow for each alternatives are as follows. Use MARR of 10% Note: Do not round in between solutions and round up to 2 decimal places for final asnwer. A. Which alternative is preferred, based on the repeatability assumptions? Use AW method.
Which of the following interpretations would be best for the scenario analysis results shown below? Worst- case PW (18%) -$650,000 IRR 2.10% Most- likely case Best-case $58,000 $2,660,000 33% 14.60% a. Since the most-likely case has a PW <0, the project should be abandoned immediately b. Since the worst-case has a negative present worth, this project must be rejected. c. Since the average of the three cases is a positive present worth, the project is acceptable. d. Because only one of the scenarios shows the project as profitable, the project should be considered very risky, and, if accepted, should be subject to greater scrutiny in its planning and forecasting.
A company is planning to raise savings with associated probabilities shown in the table below. The useful life is 5 years with a probability of 0.6 and 3 years with probability of 0.4. Use a MARR of 10% 1. Determine the joint probability distribution for savings per year and useful life. 2. Determine the Expected Value of NPW i an initial Cost of $50,000 is required. Annual Benefit $15.000 Probability 0.25 $20,000 0.45 $25,000 0.3
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3. APC + APS should always be equal to 1 a) False b) Depends on their values c) None of these d) True