6-31. Compare two renewable energy projects using PW and FW methods at a 7% interest rate: Project A costs $250,000 with $65,000 returns annually for six years, and Project B costs $220,000 with $60,000 returns annually for seven years. (6.5)

A continuous improvement team has helped to save $20,000 for the company on a process that will not be changed for the next 10 years. If the team has spent $50,000 on the improvement project, the net present worth (NPW) of savings on this improvement project is $150,000 at a MARR of 5%. O True O False

On August 6, 2021, Nike purchased new cash registers for their stores for $105,000 total. They will realize a $9,700 profit on the first Friday of every month ( Hint: You will need a calendar) starting on 9/3/2021 for an entire year (ending on July 1, 2022). What is the rate of return of this project? (X.X%)

Engineering Econ HW7 Q3

MARR 20% EOY Cash Flow 0  $(70,000.00) 1  $  20,000.00 2  $  19,000.00 3  $  18,000.00 4  $  17,000.00 5  $  16,000.00 6  $  15,000.00 7  $  14,000.00 8  $  13,000.00 9  $  12,000.00 10  $  11,000.00 11  $  10,000.00 12  $    9,000.00 13  $    8,000.00 14  $    7,000.00 15  $    6,000.00 16  $    5,000.00 17  $    4,000.00 18  $    3,000.00 19  $    2,000.00 20  $    1,000.00 Plot a graph of FW versus MARR, where MARR varies from 0 percent to 50 percent by 1 percent increments.FW should be on the y-axis and MARR on the x-axis. How do you find FW?  Please show all steps and formulas used in excel format. Thank you!

MARR 20% EOY Cash Flow 0  $(70,000.00) 1  $  20,000.00 2  $  19,000.00 3  $  18,000.00 4  $  17,000.00 5  $  16,000.00 6  $  15,000.00 7  $  14,000.00 8  $  13,000.00 9  $  12,000.00 10  $  11,000.00 11  $  10,000.00 12  $    9,000.00 13  $    8,000.00 14  $    7,000.00 15  $    6,000.00 16  $    5,000.00 17  $    4,000.00 18  $    3,000.00 19  $    2,000.00 20  $    1,000.00 Plot a graph of FW versus MARR, where MARR varies from 0 percent to 50 percent by 1 percent increments.FW should be on the y-axis and MARR on the x-axis.

6-5. A company is comparing two heating options for a new research building with an 8% annual interest rate. Which option is more cost-effective? (6.4) Gas Heating: Initial cost of $425,000, $2,500 yearly maintenance for 20 years, and $8,000 yearly energy cost rising 5% annually. Geothermal Heating: Initial cost of $300,000, no energy cost, but $10,000 yearly maintenance for 20 years. k

Find the value of P in the following cash flow. i-5% per annum. ▲$1500 0 1 2 3 4 5 6 7 8 A₁-$1000 A₂-$800 interest rate (IR): 5% interest rate (IR): 5% n n A/F 1 1 1.0000 2 2 0.4878 3 3 0.3172 4 4 0.2320 5 5 0.1810 6 0.1470 7 0.1228 0.1047 9 0.0907 10 0.0795 6 7 8 9 10 single payment FIP PIF 1.0500 0.9524 1.1025 0.9070 1.1576 0.8638 1.2155 0.8227 1.2763 0.7835 1.3401 0.7462 1.4071 0.7107 1.4775 0.6768 1.5513 0.6446 1.6289 0.6139 uniform payment series A/P FIA 1.0500 1.0000 0.5378 2.0500 0.3672 3.1525 0.2820 4.3101 0.2310 5.5256 0.1970 6.8019 0.1728 8.1420 0.1547 9.5491 0.1407 11.0266 0.1295 12.5779 PIA 0.9524 1.8594 2.7232 3.5460 4.3295 5.0757 5.7864 6.4632 7.1078 7.7217

a. The PW of the Gas Heating Option is b. The PW of the Geothermal Heating Option is c. The lower cost alternative is the geothermal heating option

None