Using Net Present Worth Analysis which alternative is best? Use an interest rate of8%.AlternativeInitial CostAnnual Benefit$2,100 $3,200$1,550 $ 1,250405 $ 1,290Salvage Value%24Useful Life (years)24OA is the best alternativeB is the best alternativeChoose either alternativeO Choose neither alternative

Using Net Present Worth Analysis which alternative is best? Use an interest rate ot 8%. Alternative Initial Cost Annual Benefit $2,100 $3,200 $1,550 $1,250 405 $ 1,290 Salvage Value $ Useful Life (years) 4 A is the best alternative B is the best alternative Choose either alternative O Choose neither alternative 2. %24

Using Net Present Worth Analysis which alternative is best? Use an interest rate ot 8%. Alternative Initial Cost Annual Benefit $2,100 $3,200 $1,550 $1,250 405 $ 1,290 Salvage Value $ Useful Life (years) 4 A is the best alternative B is the best alternative Choose either alternative O Choose neither alternative 2. %24

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Time 0 Time 1 Time 2 Time 3 Project A -10,000 5,000 4,000 3,000 If WiseGuy Inc is choosing one of the above mutually exclusive projects (Project A or Project B), given a discount rate of 7%, which should the company choose? O Both projects both have positive NPV. O Neither project both have negative NPV. O Project A Project B Project B -10,000 4,000 3,000 10,000
Which alternative should be selected using incremental rate of return analysis, if MARR = 12.0%? First cost Annual benefit Life ROR Do-nothing 0 10 yrs A B $6,500 $3,500 1,246 765 с D $7,500 $5,000 1,523 779 14.0% 17.5% 15.5% 9.0% B, because its ROR is the highest something other than C, because C costs the most initially C because C has the highest annual benefit C, because the C-B increment has a ROR of 13.70% and the A-B increment has a ROR of 9.66%
Q1 Compare present value analysis, (minimum attractive rate of return is %8 annualy.) Alternative F Alternative Z First cost, TL Annual earning, TL Maintance cost every 5 year, 400.000 650.000 -same amount- wwww w 90.000 115.000 www m 25.000 30.000 TL Scrap value, TL lifetime, (years) 100.000 1.200.000 50 infinite
Please answer fast
Alternative A B C which to choose.
Data Using Incremental with EUAW analysis find the best alternative, MARR = %10. You should use Excel and show your equations separately, see below example: [A Benefit - [IC (A/P, i%, n) - Salvage (A/F, i, n)] + A Cost+ G Cost (A/G, i, n)] First Cost Salvage Value Annual Benefit M&O M&O Gradient Useful Life, Years A $2,300,000 $85,000 $580,000 $65,000 $10,000 10 B $2,750,000 $125,000 $670,000 $78,000 $15,000 10 с $2,550,000 $95,000 $650,000 $72,000 $12,500 10
Question No. r The following information is provided for five mutually exclusive alternatives that have 20-year useful lives. If the minimum attractive rate of return is 6%, which alternative should be selected using IROR Method? Alternatives B Cost 4,000 2,000 6,000 1,000 9,000 Uniform Annual Benefit 639 410 761 117 785 IROR 15% 20% 11% 10% 6% IROR (B-D) IROR (A-D) IROR (A-B) IROR (C-B) IROR (C-A) IROR (E-C) IROR (E-A) -5% 29% 18% 10% 9% 2% 14%
Q1:Compare the alternatives below using future worth analysis at i = 8% per year using LCM. First cost, $ Annual operating cost, $ per year Salvage value, $ Life, years - 23,000 -30,000 -4,000 - 2,500 3,000 1,000 3 6
. Year End Cash Flow Alternative A Alternative B 0 -1,000 600 1 600 500 2 600 -2,000 3 600 400 4 600 200 5 -2,100 -1,000 6 700 1,386 a) Solve for the Net Present Value of the alternatives A and B using interest rates from 0% upward b) what are the rate of return of the two alternatives c) If your MARR is 8 percent, which alternatives would you select? Comment briefly on your results. What are some problems associated with the ROR method?
1
Subject: accounting
Consider the following four alternatives. Three are do-something and one is Do -Nothing. Alternative A B D Cost $O $50 $30 $40 Net annual benefit Useful life (years) Which is the preferred alternative? If 10% interest rate is selected. Use PW analysis. $O $14 $5 $7 5 10 10

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