5-21. Determine the FW of the following engineeringproject when the MARR is 15% per year. Is the projectacceptable? (5.4)Investment costExpected lifeMarket (salvage) valueAnnual receiptsAnnual expensesProposal A$10,0005 years$1,000$8,000$4,000

Step 4: Future Value of the Initial InvestmentWe need to calculate the future value of the initial…

Answered: 5-21. Determine the FW of the following…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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5
A Cost $4000 $2000 $6000 $1000 $9000 Annual benefit 639 410 761 117 750 Useful life, in years 20 20 20 20 20 i* 15% 20% 11.1% 9.9% 5.45% Perform incremental ROR analysis to select best one. MARR=6%; (P/A, 6%, 20) = 11.47 %3D
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Referring to the following cumulative cash flow diagram, salvage value is most nearly 3M 10 ERY -IM $500000 $1M $750000 - s'NOILIGOd HSV)
Engineering Economics14 Please provide a step by step solution using Annual Worth Method. Thankyou
ENGINEERING ECONOMICS Show complete solution in a paper.
Project A costs $35,000 initially, has a 4-year life and incurs $4,000 in annual year-end costs. Project B costs $39,000 initially, has a 5-year life and incurs $4,500 in annual year-end costs. If the company's required return is 10%, calculate the equivalent annual cost of each project. Options Project A $16,788; Project B $15,211 Project A $13,452; Project B $12,924 Project A $15,041; Project B $14,788 Project A $12,623; Project B $11,679 Project A $14,190; Project B $13,250
Not using exel
A company is setting up a project to buld housing Units in which the investment volume is estimated at ane million dollars to build (100 houses), the price of the house is (20,000) dollars, to be paid in equal installiments for a periad of (4 years), the annual Costs are estimated at (50) thousand dollars. Calculate the Simple rate of returm, the payoack period and the internal rate of retum for the project, bearing in mind that the lowest discount hiahest is (12'%). Will the project be accepted or rejected. rate is (8b) and the
Which equation below gives at10% interest the total EUAC of an asset with an initial cost of $30,000, an estimated salvage value of $12,000 after its 7 -year service lile a, O&M costs of $25,000 per year? EUAC=($30,000−12,000)(A/P,10%,7)+($12,000)(A/F,1006,7)+$25,000 EUAC=($30,000−12,000)(A/P,10%,7)+($12,000)(0.10)+$25,000(A/F,10%,7) EUAC=($30,000−12,000)(A/R,10%,7)+($12,000)(0.10)+$25,000 EUAC=($30,000−12,000)(A/P,10%,7)+$25,000
Solve using future worth cost method
2

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5-21. Determine the FW of the following engineering project when the MARR is 15% per year. Is the project acceptable? (5.4) Investment cost Expected life Market (salvage) value Annual receipts Annual expenses Proposal A $10,000 5 years $1,000 $8,000 $4,000