Alternative Gravity-fed Vacuum-led Capital investment Annual benefits less costs $800,000 $1,000,000 $106,500 $119,000

Five mutually exclusive alternatives are being considered for providing a sewage-treatment facility. The annual equivalent costs and estimated benefits of the alternatives are as follows (shown): Which plan, if any, should be adopted if the Sewage Authority wishes to invest if, and only if, the B–C ratio is at least 1.0.?

Tassie Ltd is considering replacing an old management system with a new one. Use the following information to determine the feasibility of this replacement plan and explain your decision in detail.   Costs of new system:                                                           $80,000 Costs of old system:                                                            $95,000 Depreciations of new system:                                  Prime cost to zero Depreciations of old system:                                      $5,000 per year Life of old system:            will be written off in 5 years if no replacement Life of new system:                                                              5 years Salvage value of new system at the end of its life:                    $18,000 Salvage value of old system at the end of its life:                             $0 Market value of the old system now:                                      $55,000 Total savings from the new system:…

A firm is considering three mutually exclusive alternatives as part of a production improvement program. The alternatives are as follows:   A B C Installed cost $8,000 $12,000 $16,000 Uniform annual benefit 1,600 1,750 2,050 Useful life, in years 10 20 20 For each alternative, the salvage value at the end of useful life is zero. At the end of 10 years, Alt. A could be replaced by another A with identical cost and benefits. (a)Construct a choice table for interest rates from 0% to 100%. (b)The MARR is 12%. If the analysis period is 20 years, which alternative should be selected?