Note: For Equivalent Worth, round off your final answer to whole number. For Rate of Return, round off to two decimal places (in percentage). Three mutually exclusive design alternatives are being considered. The estimated cash flows for each alternative are given next. TheMARR is 20% per year. At the end of the useful life, the investment will be soldA$28,000CapitalInvestmentAnnualExpensesAnnualRevenuesMV at EOY 10Useful lifeBlank 1Blank 2Blank 3Blank 415,000Blank 523,000Blank 66,00010 yearsa) PWA = $Blank 1: PWB = $Blank 2: PWC = $Blank 3b) IRRA= Blank 4%; IRRg = Blank 5%; IRRC = Blank 6%Add your answerNote: For Equivalent Worth, round off your final answer to whole number. For Rate of Return, round off to two decimal places (in percentage).Add your answerAdd your answerB$55,000Add your answer13,000Add your answer28,000Evaluate all alternatives using PW & IRR method and determine which alternative is preferable.Add your answer8,00010 yearsC$40,00022,00032,00010,00010 years

Three mutually exclusive design alternatives are being considered. The estimated cash flows for each alternative are given next. The MARR is 20% per year. At the end of the useful life, the investment will be sold A $28,000 Capital Investment Annual Expenses Annual Revenues MV at EOY 10 Useful life 15,000 23,000 6,000 10 years B $55,000 13,000 28,000 8,000 10 years C $40,000 a) PWA = $Blank 1: PWB = $Blank 2: PWC = $Blank 3 b) IRRA= Blank 4%; IRRB = Blank 5%; IRRC = Blank 6% 22,000 32,000 10,000 10 years Evaluate all alternatives using PW & IRR method and determine which alternative is preferable.

Three mutually exclusive design alternatives are being considered. The estimated cash flows for each alternative are given next. The MARR is 20% per year. At the end of the useful life, the investment will be sold A $28,000 Capital Investment Annual Expenses Annual Revenues MV at EOY 10 Useful life 15,000 23,000 6,000 10 years B $55,000 13,000 28,000 8,000 10 years C $40,000 a) PWA = $Blank 1: PWB = $Blank 2: PWC = $Blank 3 b) IRRA= Blank 4%; IRRB = Blank 5%; IRRC = Blank 6% 22,000 32,000 10,000 10 years Evaluate all alternatives using PW & IRR method and determine which alternative is preferable.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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