To choose the best alternative among the given alternatives in the annual cash flow analysis method, it is necessary to compute the EUAW for each alternative over a period of one cycle only. True / False

Concurris Prototyping is committed to using the newest and finest equipment in its labs. Accordingly, Wilma, a senior engineer, has recommended that a 2-year-old piece of precision measurement equipment be replaced immediately. She believes it can be demonstrated that the proposed equipment is economically advantageous at a 15%-per year return and a planning horizon of 5 years. Perform the replacement analysis using the annual worth method, a 5-year study period, and the estimates below. Was Wilma correct? Equipment Original purchase price, $ Current market value, $ Remaining life, years Estimated value in 5 years, $ Salvage value after 15 years, $ AOC, $ per year Current -30,000 15,000 5 7,000 -11,000 The AW of the defender is $- challenger is $- Wilma ((Click to select)) correct. Proposed -40,000 -- 15 10,000 5,000 -3,000 and the AW of the

Equipment needed at Valero Corporation refinery for the conversion of corn stock toethanol, a cleaner burning gasoline additive, will cost $175,000 and have net cashflows of $35,000 the first year, increasing by $10,000 per year over the life of 5 years.Develop a spreadsheet chart that plots AW vs interest rate to show where (what interestrate) the project switches from financially justified to unjustified. Use AW as the verticalaxis of the chart, and interest (i) as the horizontal axis of the chart. Use a range ofinterest rates spanning from 10% to 20%, and use increments of 1%. Label both axesand use a title for the chart.

Kim has $35057 to invest for 10 years. She has the following options: [A]term deposit at 5% compounded annually; [B] Shares, paying a rate of 4.98% per annum with dividend paid quarterly; and [C] A building society account, paying a return of 5.06% per annum with monthly rests. Advise Kim on which option to take if all the investments are equally secure. Calculate all the resulting values per situation