Alternative A Alternative B Alternative C Initial cost $60,000 $40,000 $50,000 Annual Benefits $32,000 $16,000 $17,000 Salvage Value $10,000 $9,000 $9,000 Useful life, years 2 3 6 vCash flow diagram for each alternative? ch machine is preferable on the basis of PRESENT WORTH ANALYSIS if i=4% per year?

Alternative A Alternative B Alternative C Initial cost $60,000 $40,000 $50,000 Annual Benefits $32,000 $16,000 $17,000 Salvage Value $10,000 $9,000 $9,000 Useful life, years 2 3 6 vCash flow diagram for each alternative? ch machine is preferable on the basis of PRESENT WORTH ANALYSIS if i=4% per year?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Solve by incremental cashflow then PW = 0. To get the value of i by interpolation. Problem 3: Two plans for a hydroelectric project in Peru have been proposed. The opportunity cost, in soles, of resources is 10 percent. Data on the two alternatives are: System First cost ($/,000,000,000) 300 160 Economic life (years) 40 20 Salvage value ($/,000,000,000) 15 12 Annual benefits (S/.000,000,000) 25 22 Annual costs ($/,000,000,000) 3 1 Using the internal rate of return method, which of the two systems should be chosen or should either be selected?
TRUE OR FALSE For any economy study based on our discussions, it is always necessary to determine the profit to evaluate thebetter/best alternative. If simple interest is evaluated, then the interest obtained will always be directly proportional to the number of yearsassuming that a constant interest rate is used throughout these years.
Sebastian is about to compare a set of mutually exclusive and indivisible alternatives using a ranking approach. Which of the following is not an appropriate measure of worth? a. Present worth b. Annual worth c. Future worth d. Internal rate of return
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2. If the rate of return on the additional cash flows between the two alternatives is less than the MARR rate, which alternative should be chosen? A. The alternative to choose is one that requires a lower initial investment B. The alternative chosen is the alternative with the smallest annual cost c. The alternative chosen is the alternative with the highest annual cost D. The alternative chosen is an alternative with an annual fee equal to the initial fee Please solve based the option max 20 minutes ASAP
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Please do not give solution in image format thanku Two incinerators are being considered by a waste management company. Design A has an initial cost of $2,500,000,has annual operating and maintenance costs of $800,000, and requires overhauls every 5 years at a cost of $1,250,000.Design B is more sophisticated, including computer controls; it has an initial cost of $5,750,000, has annual operatingand maintenance costs of $600,000, and requires overhauls every 10 years at a cost of $3,000,000. Using a 5 percent/year interest rate, determine the capitalized cost for each design and recommend which should be chosen
Based on present worth analysis!!!!!