Use the data table and the spiderplot below to answer the questions.ItemInitial investment, $Annual revenue, $Annual expense, $Market value, $Project life, yearsPW, in-20%-15%-10%PW v.% Change in Parmeter$15,000.00$10,000.00$5,000.00ههای-5%($5,000.00)($10,000,00)($15,000.00)($20,000.00)($25,000.00)Estimated Cash Flows55,00070004500180080%5%10%Change in Parameter, in %15%20%25%30% a. (Y/N) Is this project economically justified, EJ?O YesNOb. Why or Why Not? Economically Justified, EJO UnkownO EJ because PW < 0Not EJ because likely AW<0O EJ because AW > 0c. The parameter most sensitive to breakeven is?MV(8)AEOARO FCd. The parameter that management should be least worried about is?O FCO ARO AEOMV(8)e, (T/F) If the initial investment cost is reduced by $5,000, the project will be economically justified.

This question involves the analysis of a project using cash flow data and a spider plot. The…

Use the data table and the spiderplot below to answer the questions. Item 02$% -20% PW, in S Initial investment, $ Annual revenue, $ Annual expense, $ Market value, $ Project life, years -10% PW v.% Change in Parmeter $15,000.00 $10,000.00 $5,000.00 + $0.00 -5% ($5,000.00) ($10,000.00) ($15,000.00) ($20,000.00) ($25,000.00) Estimated Cash Flows 55,000 7000 4500 1800 8 0% 5% 10% Change in Parameter, in % 15% 20% 25% 30%

Use the data table and the spiderplot below to answer the questions. Item 02$% -20% PW, in S Initial investment, $ Annual revenue, $ Annual expense, $ Market value, $ Project life, years -10% PW v.% Change in Parmeter $15,000.00 $10,000.00 $5,000.00 + $0.00 -5% ($5,000.00) ($10,000.00) ($15,000.00) ($20,000.00) ($25,000.00) Estimated Cash Flows 55,000 7000 4500 1800 8 0% 5% 10% Change in Parameter, in % 15% 20% 25% 30%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Q5. A home builder is considering the purchase of a new commercial bulldozer, either AK or BR. AK First cost, $ Annual M&O costs, $ Annual benefits, $ Salvage value, $ Project Life, year -6,700 -1,500 4,000 1,000 3 BR -16,900 -1,200 4,500 3,500 6 (i) Construct a choice table for interest rates from 0% to 100%. (ii) If MARR is 8%, which alternative should be selected (use sensitivity analysis method)?
Answer question 9.69 using excel and show steps clearly please
2- Calculate the internal rate of return for the following investments: Initial Cost Annual Benefit Answer: 13.30% Operations and Maintenance Overhaul at year 3 Salvage Value Useful Life $-30,000 $10,000 $2,000 $8,000 $8,000 6 5 years
N3
14. The time line represents which investment scenario? Today 12 18 24 months months months months months months 30 36 on $2500 $2500 $2500 $2500 $2500 $2500 $2500 $2500 $2500 $2500 $2500 $2500 d or cre $2500.00 follow he qu $2500(1.029) = $2572.50 k as done $2500(1.029)? = $2647.10 $2500(1.029) = $2723.87 $2500(1.029) = $2802.86 $2500(1.029)5 = $2884.14 $2500(1.029) = $2967.78 $2500(1.029) = $3053.85 $2500(1.029)8 = $3142.41 $2500(1.029)° = $3233.54 $2500(1.029)10 = $3327.31 $2500(1.029)11 = $3423.81 answ ge on %3D %3D ou've be abl aments %3D %3D our rou o Renee Sau %3D your ha %! Total = $35 279.17 a. Future Value of $2500 invested monthly for 3 years in a fund that pays 2.9% per year, compounded monthly b. Future Value of $2500 invested monthly for 3 years in a fund that pays 34.3% per year, compounded monthly c. Future Value of $2500 invested quarterly for 3 years in a fund that pays 11.6% per year, compounded quarterly d. Present Value of $2500 invested monthly for 3 years in a…
2- Find Profit for the project, which its cash flow is shown below 95 x 10° L 700,000 U دفعات شهرية 0 0 0 0,0 50 1 2 3 4 $ 8 9 10 11 12 13 14 15 16 150 x 10° U دفعات سنوية 1050 1x 1 x 10° U i=15%
Correct answer is D . I neees steps how to get that an
Req#2: Use Aw analysis to find the best alternative for your company starting one of the following projects. Your company MARR is 9.1 %. Draw the cashflow diagram. Projects data First cost, $ Annual cost, $/year Annual revenue, $/year Life, years Project-1 -85,000 -23, 100 54,000 5 I Project-2 -135,000 -11,000 55, 100 10 Project-3 -77,000 -21, 100 37, 100 5 Project-4 -90,000 -26, 100 47, 100 5
9-83 Assume a cost improvement project has only a first cost of $100,000 and a monthly net savings, M. There is no salvage value. Graph the project's IRR for payback periods from 6 months to the project's life of N years. The firm accepts projects with a 2- year payback period or a 20% IRR. When are these standards consistent and when are they not? (a) Assume that N = 3 years. (b) Assume that N = 5 years. (c) Assume that N = 10 10 years. (d) What recommendation do you have for the firm about its project acceptance criteria?
Problem 1 A=1 B=5 C=7 D=6 E=8 Direction: Please answer it correctly. List the given, required and solution that will be use. Complete the steps and solution. Provide graph if necessary and box the final answers. .
It’s time to get a new laptop that is $2500. If you finance it, you will be charged 8% annual interest and it will take you two years to pay it off, paying each month. (A)How much will you pay each month for this laptop? (B)What are your total acquisition costs of financing the laptop?
solve this question by hand