The four alternatives described below are being evaluated Alternative A ABCD Investment IRR $200,000 15% $75,000 16% $40,000 29% $100,000 17% Other information: IRRB-C = 5%; IRRD-B = 19%; IRRD-C = 7%; IRRA-D=13%; IRRA-B = 14%; IRRA-C=11% 1. If these alternatives are mutually exclusive, which one should be selected if MARR=10%? Clearly show your steps for full credit.

Which of the following is not a method typically used for supplementary analysis of engineering economy problems? a. Break-even analysis b. Depreciation analysis c. Risk analysis d. Sensitivity analysis.

Alternative 3 is incorrect  EUAC=( Equivalent Annaul COst of Initial Investment)+ (Expected Moderate annaual flood damage cost )+ (expected severe annaual flood cost )

The city of St. John's is intalling a new swimming pool in the east end recreation centre. One design being considered is a reinforced concrete pool that will cost $5,400,000 to install. Thereafter, the inner surface of the pool will need to be refinished and painted every 5 years at a cost of $440,000 per refinishing. Assuming that the pool will have essentially an infinite life, what is the present worth of the costs associated with the pool design? The city uses a MARR of 10%. If the installation costs, refinishing costs, and MARR are subject to 5% or 10% increases or decreases, how is the present worth affected? (NOTE: Text answers are case sensitive and every field in this question is worth equal value) All calculations are performed using 4 significant figures. (a) Complete the table below: Sensitivity Analysis Calculated Values Parameter Construction Costs Refinishing Costs MARR [%] -10% -5% Base Case 5,400,000 440,000 10 +5% +10%

5- For the following three mutually exclusive alternative projects (A1, A2, or A3), select the best project based on ROR analysis assuming all projects have indefinite lives (infinite) and MARR is 12%. End of Year A1 A2 A3 Initial Cost: 8.000.000 6.000.000 10.000.000 Annual Revenues: 900,000 700.000 1.250.000 A1 b) A2 C) A3 d) A1 and A3 e) A2 and A3 1O A1 and A2 Boş bırak

I want you to provide me the Cash Flow diagram of the problem. Only cash flow diagram, the solution is already there. Thanks in advance! The annual estimated cash flow is $140,000. The salvage value will be 12% of the initial price after 5 years. The discount rate (r) is 18% Let us assume the initial price of the doughnut machine be X. PV of cash inflows=PV of cash outflows$140,000×PVAF4,18%+.12X×PVF5,18%=X$140,000×2.69006180465+.12X×0.43710921621=X$376,608.652651=X-0.05245310594$376,608.652651=0.94754689406XX=$397,456.479475 The maximum purchase price of the doughnut machine is $397,456.48.

Consider four alternatives A, B, C, and D with their respective annual benefits, disbenefits, costs and savings. Alternative A В Benefits P180,000 P250,000 P300,000 P400,000 Disbenefits P42,000 P68,000 P92,000 P118,000 Costs P128,000 P184,000 P265,000 P288,000 Savings P16,000 P27,000 P38,000 P54,000 Calculate the B/C ratio and (B-C) criterion for each alternative. Using the incremental B/C ratio, determine which alternative should be selected. O Select Alternative A O Select Alternative C O Select Alternative B O Select Alternative D

Data for problems 5 to 8 Data for four mutually exclusive alternatives are given in the table below. Assume a life of 6 years and a MARR of 10%, and EUAB stands for equivalent uniform annual benefit. Alt. A Alt. B Initial Cost EUAB $140 Salvage $40 Value $560 $340 OC1.45 OD079 $100 So Alt. C $120 $40 SO Alt. D Do SO SO SO Nothing The AB/AC ratio for the third increment, (A-B) is OA 0.94 OB. 0.89

7 ! Required information Consider the cash flows shown. Year Revenues, $ Costs, $ 0 1 2 19,000 0 25,000 -6,000 -30,000 -7,000 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. The spreadsheet function is MIRR(B1:B5,10%,18%) 3 4,000 -5,500 Determine the external rate of return using the MIRR method if ir = 18% per year and ib= 10% per year. Verify your answer with the spreadsheet function. The external rate of return is 4 28,000 -13,000 % per year.

The company you work for wants to start a new project. The initial cost of the project is $120,000. It is expected that revenues will be $18,000 annually. There will be annual operating expenses of $17,000. At the end of the 9-year life of the project, there is a salvage value of $25,000. Use a MARR of 5%. Perform a PW (present worth) analysis. What is the PW of the project? Question 2 Part A: Choose the correct Cash Flow Diagram for this scenario from the following choices. Option A 23,000 1 8 10,000 i = 5% 20,000 100,000 Option B 23,000 8. 10,000 i = 5% 20,000