Three mutually exclusive earth-moving pieces of equipment are being considered for several large building projects in India over the next five years. The estimated cash flows for each alterna are given below. The construction company's MARR is 15% per year. Which of the three alternatives, if any, should be adopted? Assume repeatability is appropriate for this comparison. Deere $26,200 Caterpillar $22,000 $7,000 $4,000 Case $17,000 $5,200 Capital investment Net annual revenue Salvage value Useful life $9,500 $5,000 $3,500 4 years 3 years 5 years Click the icon to view the interest and annuity table for discrete compounding when i=15% per year. The AW of the Caterpillar is $ The AW of the Deere is $ The AW of the Case is $ (Round to the nearest dollar.) O A. Caterpillar O B. Case OC. Deere OD. None of the above (Round to the nearest dollar.) (Round to the nearest dollar.) Which of the alternatives, if any, should be adopted? Choose the correct answer below.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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N
1
GA WN
2
3
4
5
678
7
8
9
10
11
12
13
14
15
Single Payment
Compound
Amount
Factor
To Find F
Given P
F/P
1.1500
1.3225
1.5209
1.7490
2.0114
2.3131
2.6600
3.0590
3.5179
4.0456
Discrete Compounding; i = 15%
4.6524
5.3503
6.1528
7.0757
8.1371
Present
Worth Factor
To Find P
Given F
P/F
0.8696
0.7561
0.6575
0.5718
0.4972
0.4323
0.3759
0.3269
0.2843
0.2472
0.2149
0.1869
0.1625
0.1413
0.1229
Compound
Amount
Factor
To Find F
Given A
FIA
1.0000
2.1500
3.4725
4.9934
6.7424
8.7537
11.0668
13.7268
16.7858
20.3037
24.3493
29.0017
34.3519
40.5047
47.5804
Uniform Series
Present
Worth Factor
To Find P
Given A
P/A
0.8696
1.6257
2.2832
2.8550
3.3522
3.7845
4.1604
4.4873
4.7716
5.0188
5.2337
5.4206
5.5831
5.7245
5.8474
Sinking
Fund
Factor
To Find A
Given F
A/F
1.0000
0.4651
0.2880
0.2003
0.1483
0.1142
0.0904
0.0729
0.0596
0.0493
0.0411
0.0345
0.0291
0.0247
0.0210
Capital
Recovery
Factor
To Find A
Given P
A/P
1.1500
0.6151
0.4380
0.3503
0.2983
0.2642
0.2404
0.2229
0.2096
0.1993
0.1911
0.1845
0.1791
0.1747
0.1710
Transcribed Image Text:N 1 GA WN 2 3 4 5 678 7 8 9 10 11 12 13 14 15 Single Payment Compound Amount Factor To Find F Given P F/P 1.1500 1.3225 1.5209 1.7490 2.0114 2.3131 2.6600 3.0590 3.5179 4.0456 Discrete Compounding; i = 15% 4.6524 5.3503 6.1528 7.0757 8.1371 Present Worth Factor To Find P Given F P/F 0.8696 0.7561 0.6575 0.5718 0.4972 0.4323 0.3759 0.3269 0.2843 0.2472 0.2149 0.1869 0.1625 0.1413 0.1229 Compound Amount Factor To Find F Given A FIA 1.0000 2.1500 3.4725 4.9934 6.7424 8.7537 11.0668 13.7268 16.7858 20.3037 24.3493 29.0017 34.3519 40.5047 47.5804 Uniform Series Present Worth Factor To Find P Given A P/A 0.8696 1.6257 2.2832 2.8550 3.3522 3.7845 4.1604 4.4873 4.7716 5.0188 5.2337 5.4206 5.5831 5.7245 5.8474 Sinking Fund Factor To Find A Given F A/F 1.0000 0.4651 0.2880 0.2003 0.1483 0.1142 0.0904 0.0729 0.0596 0.0493 0.0411 0.0345 0.0291 0.0247 0.0210 Capital Recovery Factor To Find A Given P A/P 1.1500 0.6151 0.4380 0.3503 0.2983 0.2642 0.2404 0.2229 0.2096 0.1993 0.1911 0.1845 0.1791 0.1747 0.1710
Three mutually exclusive earth-moving pieces of equipment are being considered for several large building projects in India over the next five years. The estimated cash flows for each alternative
are given below. The construction company's MARR is 15% per year. Which of the three alternatives, if any, should be adopted? Assume repeatability is appropriate for this comparison.
Case
Caterpillar
$22,000
$7,000
$4,000
Deere
$26,200
$9,500
$5,000
4 years
3 years
Click the icon to view the interest and annuity table for discrete compounding when i = 15% per year.
The AW of the Caterpillar is $
(Round to the nearest dollar.)
The AW of the Deere is $. (Round to the nearest dollar.)
(Round to the nearest dollar.)
Which of the alternatives, if any, should be adopted? Choose the correct answer below.
The AW of the Case is $
O A. Caterpillar
B. Case
Capital investment
Net annual revenue
Salvage value
Useful life
C. Deere
D. None of the above
$17,000
$5,200
$3,500
5 years
Transcribed Image Text:Three mutually exclusive earth-moving pieces of equipment are being considered for several large building projects in India over the next five years. The estimated cash flows for each alternative are given below. The construction company's MARR is 15% per year. Which of the three alternatives, if any, should be adopted? Assume repeatability is appropriate for this comparison. Case Caterpillar $22,000 $7,000 $4,000 Deere $26,200 $9,500 $5,000 4 years 3 years Click the icon to view the interest and annuity table for discrete compounding when i = 15% per year. The AW of the Caterpillar is $ (Round to the nearest dollar.) The AW of the Deere is $. (Round to the nearest dollar.) (Round to the nearest dollar.) Which of the alternatives, if any, should be adopted? Choose the correct answer below. The AW of the Case is $ O A. Caterpillar B. Case Capital investment Net annual revenue Salvage value Useful life C. Deere D. None of the above $17,000 $5,200 $3,500 5 years
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