The PW-based relation for the incremental cash flow series to find A/"between the lower first-cost alternative X and alternative Y hasbeen developed.0-34,000+ 9000(P/A,Ai*,10)+(-3,000(P/F,Ai*,10))Determine the highest MARR value for which Y is preferred over X. (Round the final answer to three decimal places.)Any MARR value less than% favors Y.

📌 Detailed Explanations: The problem involves finding the highest Minimum Acceptable Rate of Return…

Answered: The PW-based relation for the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The survey firm of Layer, Anderson, and Pope (MAP) LLP is considering the purchase of a pieceof new GPS equipment. Data concerning the alternative under consideration are presented below.First Cost $28,000Annual Income 7,000Annual Costs 2,500Recalibration at end of Year 4 4,000Salvage Value 2,800If the equipment has a life of eight years and MAP’s minimum attractive rate of return (MARR) is5%, what is the annual worth of the equipment?
Most likely estimates for a project are as follows. MARR Useful life Initial investment Receipts - Expenses (R-E) 10% per year 9 years $5,000 $1,200/year Click the icon to view the relationship between the PW and the percent change in parameter. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. (b) To which variable is the PW most sensitive to? OA. Receipts - Expenses OB. Usefule life OC. Initial Investment (a) Determine whether the statement "An initial investment of $6,000 keeps the investment economical." is true or false. O False O True
Wall’s Pharmacy will have to sell a new product that has an estimated revenue of $5,100 per month and costs of $1,000 per month with an initial purchase of $28,000. How long will Wall's Pharmacy have to sell a new product if the MARR is 3% per month? Wall's Pharmacy will have to sell a new product for __ months.
4. Find the equilibrium in the following single market models (equilibrium consists of ordered pair(s) of (P*,Q)). Use fractions rather than decimals.
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Six sites have been identified for a parking lot in downtown Beirut. Because the sites are plots of land, their salvage value and investment cost are identical. A 10-year study period has been specified, and the MARR is 18% per year. (Figures below are in thousands of dollars). Press A B C D E F Capital Investment $100 $150 $250 $400 $500 $700 Annual Revenues minus Expenses $15 $37.5 $50 $92.5 $112.5 $142.5 If the MARR=18%, Which site should be chosen ? On the same excel spreadsheet use the following methods: a- Present Worth b- Annual Worth C- IRR
For the cash flows shown, determine the incremental cash flow between machines B and A (a) in year 0, (b) in year 3, and (c) in year 6. Machine A B First cost, $ −15,000 −25,000 AOC, $ per year −1,600 −400 Salvage value, $ 3,000 6,000 Life, years 3 6
CASE STUDY ANNUAL WORTH ANALYSIS THEN AND NOW Background and Information Harry, owner of an automobile battery distributorship in Atlanta, Georgia, performed an economic analysis 3 years ago when he decided to place surge protectors in-line for all his major pieces of testing equipment. The estimates used and the annual worth analysis at MARR = 15% are summarized below. Two different manufacturers' protectors were compared. Cost and installation, $ Annual maintenance cost, S per year Salvage value, $ Equipment repair savings. $ Useful life, years. O 1 2 3 4 5 6 7 8 9 10 A MARR= Year 0 1 234567 11 12 13 14 15 16 17 AW element 18 Total AW 899 10 PowrUp -26,000 -800 2,000 25.000 B 15% Investment and salvage -26,000 ...... 2,000 -6,642 6 Lloyd's -36,000 -300 C 3,000 35.000 10 PowrUp Annual maintenance 0 -800 -800 -800 -800 -800 -800 -800 D Case Study Exercises 1. Plot a graph of the newly estimated maintenance costs and repair savings projections, assuming the protectors last for seven…
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
Compare three alternatives on the basis of their capitalized costs at /= 9% per year and select the best alternative. Alternative E F G $-300,000 $-26,000 $84,000 4 First Cost AOC, per Year Salvage Value Life, Years $-90,000 $-65,000 $34,000 2 The capitalized cost of alternative E is $ The best alternative is (Click to select) alternative F is $ $-1,005,000 $-2,000 $900,000 and alternative G is $
Equipment needed at Valero Corporation refinery for the conversion of corn stock toethanol, a cleaner burning gasoline additive, will cost $175,000 and have net cashflows of $35,000 the first year, increasing by $10,000 per year over the life of 5 years.Develop a spreadsheet chart that plots AW vs interest rate to show where (what interestrate) the project switches from financially justified to unjustified. Use AW as the verticalaxis of the chart, and interest (i) as the horizontal axis of the chart. Use a range ofinterest rates spanning from 10% to 20%, and use increments of 1%. Label both axesand use a title for the chart.

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