Given four proposals for funding a new project with a 100M limit on capital funding and the MARR is established at 12% per year.ProjectFirst CostEstimated Annual SavingsProject Life, YearsW12M5M25M7.3М4Y45M12.1M6.60M9M8Use the exact internal rate of return method to determine which of the four independent projects should be funded. Write thevalue of the not acceptable project accordingly/in sequence (W/X/Y/IZ).ANSWER for ALTERNATIVE 1: Blank 1ANSWER for ALTERNATIVE 2: Blank 2

When net benefits become equal to net cost then such a condition is termed as Internal rate of…

Given four proposals for funding a new project with a 100M limit on capital funding and the MARR is established at 12% per year. Project First Cost Estimated Annual Savings Project Life, Years W 12M 5M 25M 7.3М Y 45M 12.1M 6. 60M 9M 8 Use the exact internal rate of ret method determine which of the four independent projects should be funded. Write the value of the not acceptable project accordingly/in sequence (W/X/Y/Z). ANSWER for ALTERNATIVE 1: Blank 1 ANSWER for ALTERNATIVE 2: Blank 2

Given four proposals for funding a new project with a 100M limit on capital funding and the MARR is established at 12% per year. Project First Cost Estimated Annual Savings Project Life, Years W 12M 5M 25M 7.3М Y 45M 12.1M 6. 60M 9M 8 Use the exact internal rate of ret method determine which of the four independent projects should be funded. Write the value of the not acceptable project accordingly/in sequence (W/X/Y/Z). ANSWER for ALTERNATIVE 1: Blank 1 ANSWER for ALTERNATIVE 2: Blank 2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Given the following two mutually exclusive alternatives and using repeatability assumption, the correct equation for computing the CW of alternative B is. MARR-15% / year. Capital Investment, $ Market value, $ Annual Expenses, $ Useful life (years) Alternative A -12.000 0 -2,200 10 O CW(15%)-(-40,000-100-(P/A, 15%, 25)+10000(P/F, 15 %. 25))*0.15 O CW(15 %)-(-40,000(A/P. 15%, 25)-1000+10,000(A/F. 15%, 25))/0.15 OCW(15%) - (-40,000(A/P. 15%, 25)-1000+10,000(A/F, 15%, 25))*0.15 OCW(15%)-(-40,000-100-(P/A, 15%, 25 ) +10000 (P/F, 15%, 25))"0.15 Alternative B -40.000 10,000 1,000 25
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! Required information The annual revenues associated with several large apartment complexes are $225, $225, $275, $375, $75, and $125 for years 0, 1, 2, 3, 4, and 5, respectively. Determine the net cash flow and whether each cash flow series is conventional or nonconventional. The costs for years 0, 1, 2, 3, 4, and 5, respectively, are provided in the problems. When the cash flow is zero, assume it to be negative. Year 0 Cost, $ -1500 1 -450 The cash flow is conventional The Cumulative cash flow is 0 1 Year Cumulative CF, $ 2 -300 2 3 -400 3 4 -125 4 5 -400 5
If ERR > MARR, then IRR > ERR > MARR. A) True (B) False
You have decided to open a microbrewery selling university-themed beers as one of your product lines. You need to conduct a breakeven analysis of sales and price. You know your fixed costs but based on your marketing plan you are not sure of pricing and sales. Your company MARR is 5%, and fixed costs include an initial capital investment of $250,000 with fixed annual expenses of $100,000. Use a 5-year planning horizon and assume that these expenses will not grow with inflation. a. Draw the cash flow diagram. b. Populate the following table and plot the NPW results in a meaningful plot. (Make sure you label your axis, and your plot should contain three curves.) c. Make a pricing recommendation as a function of sales. You would like to make a minimum of $100,000 for your work on this project.
Future worth and annual cash flow analysis often require far less computation than rate of return analysis Select one: True False
The future worth of a project with initial cost P, positive annual cash flows of A, salvage value S, and interest rate of i over a life of n years can be calculated using which statement? (a) FW = −P(F/P, i%, n) + A(F/A, i%, n) + S(F/P, i%, n) (b) FW = P(F/P, i%, n) + A(F/A, i%, n) + S (c) FW = −P(P/F, i%, n) + A(F/A, i%, n) − A[(P/A, i%, n) + S (d) FW = −P(F/P, i%, n) + A(F/A, i%, n) + S?
Carlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA fines of $16,500 per year. An emission reduction filter will cost $75,000 and have an expected life of 5 years. Carlisle's MARR is 10%/year. Part a What is the future worth of this investment? $
Street cost 25 M now and 2 M annual maintenance. At i=10%, what is the capitalized cost?
Find the internal rate of return for the following investment (yes I want the actual rate). Is it a good idea if MARR=10%? Year %24 -160,400 75,000 -32,000 55,000 32,500 69,500 2 3 4 Attach File Browse Local Files
You are asked to decide between two projects based on annual equivalent worth. A - $10,000 - $12,000 $6,000 $7,000 $5,000 $8,000 $4,000 Click the icon to view the interest factors for discrete compounding when i= 10% per year. (a) What assumptions do you need to make in comparing these mutually exclusive revenue projects? Select all that apply. O A. These two projects will be available in the future without significant changes in revenue expectations. B. The current projects are expected to continue for an indefinite period. O C. The two projects will be available in the future at the increasing cost. O D. The salvage values of two projects are the same.