Calculate the profitability of the following proposal using the Average rate of return (ARR) method Proposal I Automatic machine Cost OMR 320000 Estimated life 5 years, scrap value OMR 25000, The estimated profits are given below Year Profits 75000 21 55000 3. 60000 4 70000 80000 37.71% O b. 36.00% c. 39.42% d. All the options are wrong

Q: Given the data in the table below, calculate the PW of A and B. Choose the better alternative- using…

A: MARR =8%Initial cost of A = $10,000Initial cost of B = 9,000Annual benefits of A = $5,200Annual…

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Q: am. 115.

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A:

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Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.