Compare three alternatives on the basis of their capitalized costs at /= 9.00% per year and select the best alternative. (Include a minussign if necessary.)AlternativeFirst CostE$-75000F$-385000AOC, per Year$-80000$-22000Salvage Value$28000$78000Life, Years24G$-885000$-8000$400000The capitalized cost of alternative E is $ 1213755.98, alternative F is $ 1375347.55, and alternative G is $ 973888.89 ☑The best alternative isG

Capitalized cost (CC) refers to the PW (present worth) of an alternative that is going to last…

Answered: Compare three alternatives on the basis…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Two alternatives for a construction project are being considered. Both projects have a 5-year life. Alternative A's initial cost is $2,260 and yields $355 annually for 5 years. Alternative B initially costs $5500 and yields $1,250 annually for 5 years. The rate of return on the difference between the alternatives is approximately Group of answer choices 3.6% 15% 8% 12%
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Select the best alternative through internal rate of return analysis. Assume that the minimum attractive rate of return is 10% per year. Machine X |Machine YInitial cost $ 400,000.00 $ 500,000.00Annual operating cost $ 15,000.00 |$ 25,000.00 Annual profit $ 20,000.00 |$ 40,000.00Residual value $ 85,000.00 |$ 100,000.00Project life 15 years | none Engineering Economic Analysis
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Compare the following investment alternatives using ROR analysis. MARR is %12 per annum. Alternative-A Alternative-B First cost, $ 240,000 450,000 Uniform annual benefit, $ 52,000 84,000 Salvage value, $ 120,000 230,000 Life, year 20 Infinite
You are a consultant at Brinkley & co .you are responsible for evaluating projects introduced by surrounding engineering firms. the current project you are evaluating requires an initial investment of $35,000 and that returns $5000 for the next 10 years. if the MARR is 12% what is the present worth value?
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