Problem 1 is the first picture and answer Asap the problem in the 2nd picture please **Project X and Y Present Worth Analysis**Using the cost data for Project X and Project Y below, conduct a Present Worth Analysis to calculate the Present Worth of Project X at time 0 over the Least Common Multiple (LCM) of years of the life of both X and Y. Given an 8% per year interest rate:| | X | Y ||------|---------|----------|| First Cost | -60,000 | -150,000 || Annual Cost | -12,000 | -7,000 || Salvage Value | 5,000 | 80,000 || Life | 10 | Infinity |**Present Worth of Project X is closest to which answer?**- ○ -230,226- ○ -138,205- ○ -269,131- ○ -257,458This analysis aims to determine the financial viability of Project X by evaluating its net present worth using the given data over its lifetime. ### Present Worth Calculation of Project YUsing the same information from Problem No. 1, calculate the present worth of Project Y with an 8% annual interest rate.**Options:**- $-237,500$- $-253,140$- $-216,590$- $-208,234$**Instructions:**Select the correct option that represents the present worth of Project Y when calculated using the provided interest rate. The figures represent potential present values of the project considering the specified 8% interest rate.

Cash flow:The net amount of cash or cash equivalents that enters and exits a business or financial investment during a certain time period is referred to as cash flow. It is an essential indicator of a business's financial health and performance, giving information about its capacity to generate positive cash inflows and pay bills.Present Worth formula:For Project X:The first cost of Project X),(Annual cost of Project X),P(A/F,8%,10) is the present worth factor for an annuity with 8% interest rate and 10 periods,(Salvage value of Project X).Now, plug in the values:Calculate P(A/F,8%,10): Therefore, the Present Worth of Project X is approximately -$126,690.94. Among the given options, the closest one is -138,205.Present Worth formula:For Project Y:The first cost of Project Y),(Annual cost of Project Y),P(A/F,8%,infinity) is the present worth factor for an annuity with an 8% interest rate and infinite periods,(Salvage value of Project Y).Now, plug in the values:Project Y:The term approaches zero because it's in the denominator and the exponent becomes very large. Therefore, the salvage value in year infinity does not have a significant impact on the present worth calculation.The present worth of project X is -138,205.The present worth of project Y is -253,140.

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Economics

Using the cost data for Project X and Project Y below, conduct a Present Worth Analysis to calculate the Present Worth of Project X at time 0 over LCM years of the life of both X and Y. Given 8% per year interest rate. First Cost -60,000 Annual Cost -12,000 Salvage Value Life -230,226 -138,205 X -269,131 -257,458 5,000 Infinity Present Worth of Project X is closest to which answer? 10 Y -150,000 -7,000 80,000

Using the cost data for Project X and Project Y below, conduct a Present Worth Analysis to calculate the Present Worth of Project X at time 0 over LCM years of the life of both X and Y. Given 8% per year interest rate. First Cost -60,000 Annual Cost -12,000 Salvage Value Life -230,226 -138,205 X -269,131 -257,458 5,000 Infinity Present Worth of Project X is closest to which answer? 10 Y -150,000 -7,000 80,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Problem 1 is the first picture and answer Asap the problem in the 2nd picture please

**Project X and Y Present Worth Analysis**

Using the cost data for Project X and Project Y below, conduct a Present Worth Analysis to calculate the Present Worth of Project X at time 0 over the Least Common Multiple (LCM) of years of the life of both X and Y. Given an 8% per year interest rate:

| | X | Y |
|------|---------|----------|
| First Cost | -60,000 | -150,000 |
| Annual Cost | -12,000 | -7,000 |
| Salvage Value | 5,000 | 80,000 |
| Life | 10 | Infinity |

**Present Worth of Project X is closest to which answer?**

- ○ -230,226
- ○ -138,205
- ○ -269,131
- ○ -257,458

This analysis aims to determine the financial viability of Project X by evaluating its net present worth using the given data over its lifetime.

### Present Worth Calculation of Project Y

Using the same information from Problem No. 1, calculate the present worth of Project Y with an 8% annual interest rate.

**Options:**

- $-237,500$
- $-253,140$
- $-216,590$
- $-208,234$

**Instructions:**
Select the correct option that represents the present worth of Project Y when calculated using the provided interest rate. The figures represent potential present values of the project considering the specified 8% interest rate.

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