Conduct a ROR analysis for the above information. If MARR= 18%, which projectshould be chosen and what is its corresponding RORInvestment costAnnualmaintenance costSalvage valueProject A20,0002,0005,000Useful life (years) 20O Project B, ROR - 19.69%Project A, ROR=20.69%O Project B, ROR=20.69%Project A, ROR = 19.69%Project B10,0004,0001,00020

ROR stands for "Rate of Return." It is a financial metric used to assess the profitability of an…

Conduct a ROR analysis for the above information. If MARR= 18%, which project should be chosen and what is its corresponding ROR Investment cost Annual maintenance cost Project A 20,000 2,000 Salvage value 5,000 Useful life (years) 20 O Project B, ROR - 19.69% Project A, ROR=20.69% O Project B, ROR=20.69% Project A, ROR = 19.69% Project B 10,000 4,000 1,000 20

Conduct a ROR analysis for the above information. If MARR= 18%, which project should be chosen and what is its corresponding ROR Investment cost Annual maintenance cost Project A 20,000 2,000 Salvage value 5,000 Useful life (years) 20 O Project B, ROR - 19.69% Project A, ROR=20.69% O Project B, ROR=20.69% Project A, ROR = 19.69% Project B 10,000 4,000 1,000 20

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. Two alternatives, a flexible manufacturing cell and fixed automation, have different cost and revenue characteristics as follows: Flexible Cell Fixed Automation Investment S2,500,000 б уears S800,000 in first year; increasing by $100,000 each year thereafter $300,000/year $1,500,000 3 years S800,000/year Life Gross cash savings s100,000 in the first year; decreasing to S80,000 in second year and S70,000 in third year Cash disbursement MARR 20% 20% Assuming "repeatability" and service needed for 6 years, show which alternative is preferred using the method of rate of return.
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Graph on right, shows AW of costs versus number of service years of project X. Based on the graph, economic service life of the project is Larger costs Total AW of costs AW of AOC Capital recovery 3.5 10 Years О 3.5 years O 10 years O 1 year О З уears AW of costs, S/year
You bought the latest IPhone 13 for your online selling business for Php 83,000.00. With this, your online income has increased by Php 1,000.00 anually. After 7 years, your Iphone 13 can be sold at Php 13,000.00. You have set your personal MARR to be at 8%. Was your purchase of the Iphone 13 economically viable? Show complete solution using Present Worth Method, Annual Worth Method, and Future Worth Method and with cashflow diagram.