YOLO Construction Co. is planning to purchase a new truck. Company uses MARR as 10%per year. Evaluate the following two alternatives by Present Worth Analysis using LeastCommon Multiple (LCM) technique. Select the PW value of Alternative A.АBFirst Cost, SAnnual Income, S/year-170000-13000022000 and increasing29000starting from year 1 by $500each year-7000Annual Cost, $/yearMajor Maintenance Cost,every 3 years, SSalvage Value, $Life, years-11000-1000017000100004Select one:O a. -195520.8O b. -142110O C. -116200O d. -146445.8O e. -191185

PW is the present value of cash flows that are expected to occur in the future.

YOLO Construction Co. is planning to purchase a new truck. Company uses MARR as 10% per year. Evaluate the following two alternatives by Present Worth Analysis using Least Common Multiple (LCM) technique. Select the PW value of Alternative A. A -170000 B -130000 А First Cost, S Annual Income, S/year 22000 and increasing 29000 starting from year 1 by $500 each year Annual Cost, $/year Major Maintenance Cost, every 3 years, S Salvage Value, S Life, years -7000 -11000 -10000 17000 10000 4 8 Select one: O a. -195520.8 O b. -142110 O C. -116200 O d. -146445.8 O e. -191185

YOLO Construction Co. is planning to purchase a new truck. Company uses MARR as 10% per year. Evaluate the following two alternatives by Present Worth Analysis using Least Common Multiple (LCM) technique. Select the PW value of Alternative A. A -170000 B -130000 А First Cost, S Annual Income, S/year 22000 and increasing 29000 starting from year 1 by $500 each year Annual Cost, $/year Major Maintenance Cost, every 3 years, S Salvage Value, S Life, years -7000 -11000 -10000 17000 10000 4 8 Select one: O a. -195520.8 O b. -142110 O C. -116200 O d. -146445.8 O e. -191185

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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Assume that a company is considering purchasing a machine for $50,500 that will have a five-year useful life and no salvage value. The machine will lower operating costs by $17,000 per year. The company's required rate of return is 18%. The profitability index for this investment is closest to: Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. Multiple Choice C O 0.95. 1.01. 1.05. 1.11.
The following three alternatives have been developed and costed to improve the efficiency of aircraft engines. Compare the alternatives using capitalized cost and a MARR of 10% per year compounded annually. Alternative Alternative Alternative G First Cost, $ -1,000,000 -3,000,000 -5,000,000 Net income $ per year 325 000 400,000 600,000 Salvage value, S 50,000 70,000 Life, years 4 8.
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