An electric cooperative is considering the use of a concrete pole in the expansion of its power distribution lines. A concrete pole costs 18,000 each and will last 20 years. The company is presently using creosoted wooden poles which cost 12,000 per pole and will last 10 years. If money is worth 12 percent, which pole should be used? Assume annual taxes amount to 1 percent of first cost and zero salvage value in both cases. choices A.Creosoted wooden pole B.Concrete pole

An investment of 15,000,000 yields net annual revenues of 11,500,000. What is the simple payback period?

Describe the process of Applying Annual-Worth Analysis?

Krysel Inc. is expecting a new project to begin producing cash flows at the end of this year. They expect cash flows to be as follows: Year Year                                     1                            2                          3 amount                              $663,547            $698,214            $795,908                If they can reinvest these cash flows to earn a return of 9.2 percent, what is the future value of this cash flow stream at the end of five years? (Round to the nearest dollar.) Group of answer choices $1,468,692 $1,429,046 $1,668,692 $1,804,382

You are considering two options in purchasing an automobile: Option A: Purchase the vehicle worth $26,200 and pay for the vehicle over 3 years with equal monthly payments at 3% APR financing. Option B: Purchase the vehicle at a discount price of $24,000 to be paid immediately. The funds, which would be used to purchase the vehicle, are presently earning 6% annual interest compounded monthly. Which of the following statements is incorrect? O a. If you go with Option A, the monthly payment would be $761.93. Ob. Option B is a better choice if you have enough money to purchase in cash. Oc. Option B is a botter financing plan, as the net cost of financing is cheaper than Option A. Od. The offectivo annual yiold for your funds is 6.17%.

A company is considering two machines. Machine 1 has a first cost of $48,000, AOC of $22,000, and Salvage of $11,000 after 9 years. Machine 2 will cost $58,000 with an AOC of $24,000 and Salvage of $9,000 after 9 years. Please write formula, use compound interest table for extracting factors, show your solution step by step. Which machine should the company select at an interest rate of 7% per year? a)      Draw cash flow diagram b)      Apply AW analysis c)      Apply PW analysis

A regional municipality is studying a water supply plan for its tri-city and surrounding area to the end of year 2080. To satisfy the water demand, one suggestion is to construct a pipeline from a major lake some distance away. Construction would start in 2030 and take five years at a cost of $25 million per year. The cost of maintenance and repairs starts after completion of construction and for the first year is $3 million, increasing by 2 percent per year thereafter. At an interest rate of 6 percent, what is the present worth of this project? Assume all cash flows take place at year-end. Consider the present to be the end of 2025/beginning of 2026. Assume there is no salvage value at the end of year 2080.

Solo Corporation is evaluating a project with the following cash flows: Year 0,1, 2, 3, 4, 5 Cash Flow $ -29,600; 
11,800; 
14,500
; 16,400; 
13,500 and -10,000.                                                                                                         The company uses an interest rate of 10 percent on all of its projects. Calculate the MIRR of the project using all three methods.                                       a. MIRR using the discounting approach.                                                             b. MIRR using the reinvestment approach.                                                           c. MIRR using the combination approach.

Please choose one of the following options. Double check your work. There is no additional information. This is the question and those are your options. PW analysis stands for Present Worth Analysis. It is a term used in engineering economics.   What will be the total lifetime for every project if we compare them with PW analysis? Project A has a lifetime of 9 years, project B has a lifetime of 7 years, and project C has a lifetime of 3 years.   9   189   126   27   63

A regional municipality is studying a water supply plan for its tri-city and surrounding area to the end of year 2070. To satisfy the water demand, one suggestion is to construct a pipeline from a major lake some distance away. Construction would start in 2030 and take five years at a cost of $25 million per year. The cost of maintenance and repairs starts after completion of construction and for the first year is $3 million, increasing by 1 percent per year thereafter. At an interest rate of 9 percent, what is the present worth of this project? Assume all cash flows take place at year-end. Consider the present to be the end of 2025/beginning of 2026. Assume there is no salvage value at the end of year 2070. Click the icon to view the table of compound interest factors for discrete compounding periods when i = 9%. The present worth of this project is 5 million. (Round to two decimal places as needed.)