Which alternative in the table below should be selected when the MRR = 6% per year? The life of each alternative is 10 years. Increment Considered A Investment cost A (Annual Revenues less Costs) IRR on A Investment Cost A(A-DN) $800 $154 14.1% The IRR on A(C-B) is % (Round to one decimal place.) A(B-A) $700 $114 10.0% A(C-B) $1,100 $170 ? A(D-C) $1,300 $130 ?

A consulting engineering firm is considering two models of SUVs for the company principals. A GM model will have a first cost of $36,000, an operating cost of $4000, and a salvage value of $15,000 after 3 years. A Ford model will have a first cost of $32,000, an operating cost of $3100, and also have a $15,000 resale value, but after 4 years. (a) At an interest rate of 15% per year, which model should the consulting firm buy? Conduct an annual worth analysis. (b) What are the PW values for each vehicle?

Economic Study Methods

A man buys a corporate bond from a bond brokerage house for $875. The bond has a face value of $1000 and a 4% coupon rate paid semiannually. If the bond will be paid off at the end of 12 years, what rate of return will the man receive?

K Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The MARR is 4% per year. Capital investment Annual expenses Useful life Market value at end of useful life The PW of the Lead Acid is $ The PW of the Lithium Ion is $ Click the icon to view the interest and annuity table for discrete compounding when i = 4% per year. (a) Determine which alternative should be selected based on the PW method. Assume repeatability and use a study period of 18 years. Lead Acid Lead Acid $7,000 $2,250 6 years $0 Lithium Ion Lithium Ion $13,000 $2,300 9 years $2,600 Which alternative should be selected? Choose the correct answer below. The AW of the Lead Acid is $ The AW of the Lithium lon is $ Lead Acid Lithium Ion (Round to the nearest dollar.) (Round to the nearest dollar.) (b) Determine which alternative should be selected based on the AW method, also assuming repeatability. . (Round to the nearest dollar.) (Round to the nearest dollar.) Which…

How much will Sonja have in a savings account 12 years from now if she deposits $3000 now and $5000 four years from now? The account earns interest at a rate of 10% per year. (a) $10,720 (b) $9,415 (c) $20,133 (d) $15,630 (e) Greater than $22,000

For the cash flows shown, determine the incremental cash flow between machines B and A for (a) year 0, (b) in year 3, and (c) in year 6. Machine First Cost, $ АОС, $/year Salvage value, $ 3,000 Life, years B -15,000 -25,000 -1,600 -400 6,000 3 4 O (a) = -10000 (b) = -1800 (c) = 1200 %3D !3! O (a) = -10000 (b) = 13200 (c) = 4200 !3! %3! O (a) = -10000 (b) = 13200 (c) =6000 %3! %3D O (a) = -10000 (b) = 13200 (c) = 13200 %3D

Mechanical engineer at Company B is considering five equivalent projects, some of which have different life expectations. Salvage value is nil for all alternatives. Assuming that the company’s MARR is 13% per year, determine which should be selected (a) if they are independent, and (b) if they are mutually (c) Explain why your selection in part (b) is correct.     First Cost, $ Net Annual Income, $/Year Life, Years A -20,000 +5,500 4 B −10,000 +2,000 6 C −15,000 3,800 6 D −60,000 +11,000 12 E −80,000 +9,000 12

Barron Chemical uses a thermoplastic polymer to enhance the appearance of certain RV panels. The initial cost of one process was $126,000 with annual costs of $48,000. Revenues are $80,000 in year 1, increasing by $100O per year. A salvage value of $20,000 was realized when the process was discontinued after 8 years. What rate of return did the company make on the process? The rate of return made by the company is %.

Street lighting fixtures and their sodium vapor bulbs for a​ two-block area of a large city need to be installed at a first cost​ (investment cost) of ​$130,000. Annual maintenance expenses are expected to be​$6,500for the first8years and​$8,500 each year thereafter upto 25years. With an interest rate of 9​% per​ year, what is the present worth cost of this​ project? Choose the closest answer below. A) $202,422 B $238,597 C) $249,468 D) $277,339