You are to buy a new machine for building a new type of rockets for Wiley Coyote. You have two alternatives, Machine Kaboom and Machine Badaboom. Using Net Present Worth analysis, select the best alternative. Assume an i= 7%. Initial Cost Annual Benefits Annual Costs WAK Machine Kaboom -$2,500 $2,000 -$1,200 Machine Badaboom -3,740 $2,150 -$1.300

A manufacturer of automated optical inspection devices is deciding on a project to increase the productivity of the manufacturing processes. The estimated costs for the two feasible alternatives being compared are shown below. Use the internal rate of return (IRR) method to determine which alternative should be selected if the analysis period is 8 years and the company's MARR is 4% per year. Alternative M N Initial costs $30,000 $45,000 Net annual cash flow $4,500 $7,000 Life in years 8 8 (a) IRR of base alternative = (b) IRR of incremental cash flow = (c) Choose Alternative

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You are looking at purchasing a new computer for online class. Computer A costs $4000 now, and you expect it will last throughout your program without any upgrades. Computer B costs $2500 now and will need an upgrade at the end of two years, which you expect to be $1700. With 8 percent annual interest, compounded monthly, which is the less expensive alternative and by how much, if they provide the same level of service and will both be worthless at the end of the four years?

a. Compute annual rate of return, Pay back period b  NPV using 14% discounts rate , Is the Project acceptable using this discount rate  Compute NPV using 11% discounts rate. Is the Project acceptable using this discount rate

Minden Co. is considering buying new computer software that will assist customers in their product choices. The cost is $50,000. The benefit will be an additional cash inflow of $25,000 for four years, at which point the software will need replacing with a more modern version. The return on average investment is _______________.   Question 15 options:   25.0%     none of the options     42.5%     50.0%     30.0%