The value of the future worth for alternative X at an interest rate of12% per year is closest to:XFirst cost, $-15,000-35,000Annual operating cost, $ per year-9,000-7,000Salvage value, $2,0005,000Life, years36Select one:O a. -180,750O b. -118,908O c. -98,870O d. 150,350Y

In conclusion,The closest future worth to the answer choices is Od. -98,870. However, it's important…

Answered: The value of the future worth for…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Street lighting fixtures and their sodium vapor bulbs for a two-block area of a large city need to be installed at a first cost (investment cost) of $130,000. Annual maintenance expenses are expected to be$6,500for the first8years and$8,500 each year thereafter upto 25years. With an interest rate of 9% per year, what is the present worth cost of this project? Choose the closest answer below. A) $202,422 B $238,597 C) $249,468 D) $277,339
6
The cash flow associated with XYZ Mining operation costs is expected to be $200,000 in year 1, $180,000 in year 2, and amounts decreasing by $20,000 per year through 8. At an interest rate of 12% per year, find the equivalent annual worth (AW) of the operation costs. O a. $142,738 O b. $261,970 O C. $185,070 O d. $61,970
U.S. Census Bureau statistics show that the annual earnings for persons with a high school diploma are $35, 220 versus $57, 925 for someone with a bachelor’s degree. If the cost of attending college is assumed to be $35, 000 per year for 4 years and the forgone earnings during those years are assumed to be $35, 220 per year, what rate of return does earning a bachelor’s degree represent? Use a 25-year study period. In your analysis, you are expected to: (i) Use Excel to display the cash flow; (ii) Draw a Cash Flow Diagram; (iii) Use Excel to compute the internal rate of return of the CFD. (Hint: The investment in years 1 through 4 is the cost of college plus the foregone earnings, and the income in years 5 through 25 is the difference in income between a high school diploma and a bachelor’s degree.) Use excel
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Calculate the total capital cost and the annual worth for the following cash flow diagram (the time is infinity) 2 4 8 10 12 14 20 26 Year Infinity $2000 $3000 S50,000 $1500 $1500 $1500 Only one рayment Cost repeated every 7 years i = 5% per year $90,000
The time line represents which investment scenario? 1 3 4 Today year years years years + $800 $800 $800 $800 $80 $80 $80 $8000 invested annually for 4 years in a O a) fund that pays 9% interest per year, compounded annually $8000 invested annually for 4 years in a b) fund that pays 18% per year, compounded semin annually $8000 invested annually for 4 years in a c) fund that pays 9% interest per year, compounded monthly $8000 invested annually for 1 year in a d) fund that pays 36% per year, compounded quarterly 2.
M2.
A company that manufactures magnetic membrane switches is investigating two production options that have the estimated cash flows shown ($1 million units). Which one should be selected on the basis of a present worth analysis at 10% per year? In-house Contract First Cost, $ -30 Annual Cost, $ per year -5 -2 Annual Income, $ per year 14 3.1 Salvage Value, $ 2 Life. years 5 Approximately, what is the value of (P) if A-340, n=9 years, and i= 8% per year? O a. 2847 O b. 2549 O c. 1763 O d. 2124

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The value of the future worth for alternative X at an interest rate of 12% per year is closest to: X First cost, $ -15,000 -35,000 Annual operating cost, $ per year -9,000 -7,000 Salvage value, $ 2,000 5,000 Life, years 3 6 Select one: O a. -180,750 O b. -118,908 O c. -98,870 O d. 150,350 Y