Xanadu Mining is considering three mutually exclusive alternatives, as shown in the table below. MARR is10.0%/year.EOY A001 B002 C0030-$210 - $110 -$1601$100$60$762$110$60$763$120$60$764$130$70$76Click here to access the TVM Factor Table Calculatorart aWhat is the present worth of each alternative?Alternative A001: $Alternative B002: $Alternative C003: $

The above answer can be explained as under - The present worth is calculated using the excel formula…

Answered: Xanadu Mining is considering three…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life. It has a salvage value of $3000 at the end of 10 years. If the MARR is 5 percent, what is the payback period of this project? Ctrl) -
Brand A B 5:21 PM C D 2 years 3 years $13 4 years $17 5 years Which brand should the engineer select if the MARR is 9% a year? Cost m October 7, 2023 17:17 $7 2. An electrical engineer has to choose one brand of light bulbs among four available brands. The following information are available; lifetime $9 VPN G 4G+ LTE 22 8 0
earch 1 Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $120,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value. Annual labor costs would increase $2,000 using the gang punch, but annual raw material costs would decrease $15,000. MARR is 4.0%/year. Part a Q Ft A What is the present worth of this investment? $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is +5. eTextbook and Media Z Save for Later Part b The parts of this question must be completed in order. This part will be available when you complete the part above. @ 2 F2 E 3 S W WE D x $ 4 R F FB % 5 FG 6 TY G F7 & 7 H n FB U * 8 F9 Attempts: 0 of 3 used I 02 ( 9 F10 J K X CV BN M O - ) F11 0 L < Alt Submit Answer *+ P F12 11 : 85°F Mostly cloud Prisc ( + 11 [ ? Inse A
Given cash flows for two alternatives as shown in table below, choose the most attractive alternative if MARR = 8%. Year 0 1 2 3 through ∞ Alt. A -$42K $3.6K $3.6K $3.6K Alt. B -$54K $4.7K $4.7K $4.7K Group of answer choices Alt. A Alt. B Select neither Select either
Conduct a ROR analysis for the above information. If MARR= 18%, which project should be chosen and what is its corresponding ROR Investment cost Annual maintenance cost Salvage value Project A 20,000 2,000 5,000 Useful life (years) 20 O Project B, ROR - 19.69% Project A, ROR=20.69% O Project B, ROR=20.69% Project A, ROR = 19.69% Project B 10,000 4,000 1,000 20
Need AsapIllustrate the cashflow diagram and compute for the payback period for a project with the following characteristics, if the minimum attractive rate of return (MARR) is 10%? First Cost $20,000 Annual Benefits $8,000 Annual Maintenance $2,000 in year, then increasing by $500 per year Salvage Value $2,000 Useful Life10 years
Would love some help on how to approach this - thanks! The cash flows for three different alternatives are given in table below. MARR =10%. Alt. A Alt. B Alt. C Initial cost $5,000 9,000 7,500 Annual benefits $1,457 2,518 2,133 RoR 14% 13% 12.4% Life in years 5 1. ΔRoR for the first increment (Alt. C-Alt. A) is ___________________. A.10.12% B. 9.38% C. 11.85% D. 11.00% 2. ΔRoR for the second increment is ___________________. A. 10.12% B. 9.38% C. 8.94% D. 9.87% 3. The best alternative for a MARR of 10% using the incremental rate of return analysis is ____________. A. Alt. C B. Alt. A C. Alt. B D. Do nothing
Determine the better of the two alternatives using the present worth analysis. Use an interest rate of 10%. Alt. X Alt.Y Initial cost $12,500 $8,900 Annual benefit $6,800 $2,000 Salvage value $5,000 $8,900 Life in years 2 years 3 Years MARR 10%
Consider the following cash flow profile and assume MARR is 10%/year. EOY NCF 0 Part a 1 2 3 4 5 6 -$80 $12 $12 $12 $12 $12 $12 Click here to access the TVM Factor Table Calculator Determine the ERR for this project. %
Question 3 A project with the following costs are under consideration to determine its profitability. Using the IRR comparison, and an annual MARR of 10% compounded semiannually, determine if the project should be executed First cost $45,000 Semiannual operating cost $10,000 Semiannual income $20,000 Salvage value $20,000 Life in years 4 years Oa. IRR = 17% semiannual Ob. IRR= 18.7% semiannual O IRR = 16.9% semiannual Od. IRR 15.3% semiannual
An electronics firm is planning to manufacture a new handheld gaming device for the preteen market. The data have been estimated for the product. Assuming a negligible market (salvage) value for the equipment at the end of five years, determine the breakeven annual sales volume for this product.
Consider the following analysis of two alternatives, X & Y: YR X Y 0 -200 -1000 1 50 250 2 50 250 3 50 250 4 50 250 5 100 300 The MARR is 10%. Calculate the incremental rate of return in percent to the nearest 0.1 percent.

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