2. You are presented with three investment possibilities; however, you only have enough money to invest in one (the opportunities are mutually exclusive). The MARR is 5%,. Which one should be chosen? Make a decision based on an incremental rate of return analysis. A B $ (100,000) S (150,000) S 50,000 $ 10,000 $ Initial Cost (210,000) Annual Benefit $ Salvage ValueS Life (yrs) 45,000 $ 35,000 S 27,000 40,000 3 6 6 ROR 12% 11% 8%

2. You are presented with three investment possibilities; however, you only have enough money to invest in one (the opportunities are mutually exclusive). The MARR is 5%,. Which one should be chosen? Make a decision based on an incremental rate of return analysis. A B $ (100,000) S (150,000) S 50,000 $ 10,000 $ Initial Cost (210,000) Annual Benefit $ Salvage ValueS Life (yrs) 45,000 $ 35,000 S 27,000 40,000 3 6 6 ROR 12% 11% 8%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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PLABOR МIC $7.00 -S $5.25 $4.50 MVP QLABOR 1000 1500
Solve by incremental cashflow then PW = 0. To get the value of i by interpolation. Problem 3: Two plans for a hydroelectric project in Peru have been proposed. The opportunity cost, in soles, of resources is 10 percent. Data on the two alternatives are: System First cost ($/,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?
Suppose you are offered two options: (i) receive Taka 30,000 at the end of 5 years or (ii) receive Taka P today and another Taka P 2 year later. When you invest the P Taka in ecommerce it pays around 8% profit yearly. What value of P would be same as promise of Taka 30,000 after 5 years? Assume there is no risk in this future payment.
Your boss wants to buy an equipment for 30,000php. It is believed that this equipment will bring an additional 8,500 php income per year. The equipment's value after 5 years will be 4, 500 php. Your boss asks you at what value should the MARR be to break even between profit or loss. What would be your answer? Solve using present worth, annual worth and future worth. Tabulate your answers and show cash flow diagram.
Most likely estimates for a project are as follows. MARR Useful life Initial investment Receipts - Expenses (R-E) Click the icon to view the relationship between the PW and the percent change in parameter. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12per year. (a) Determine whether the statement "An initial investment of $7,150 keeps the investment economical." is true or false. True False (b) To which variable is the PW most sensitive to? OA. Usefule life B. Receipts Expenses 12% per year 14 years $5,500 $1,000/year OC. Initial Investment
What is the best alternative using incremental Analysis? Use MARR = 15% A B C Capital Investment $ 2,000 7,000 4,200 Annual Revenues 3,200 8,000 6,000 Аппиal Costs 2, 100 5, 100 4,000 Market Value at the end of useful life 100 600 420 Useful Life (in years) 10 10 10 The correct ranking of Alternative is Blank 1 Select Alternative Blank 2 Note: Do not put comma, unit of measure and limit your answer to two decimal places. Ex: A-B-C
Some particulars for a project are as follows. Initial Capital Cost in year 0 ($Mn) Follow-up 'one-off' cost in year 1 ($Mn) Annual Operating Cost ($Mn/yr) Annual Benefits ($Mn/yr) Project Closure Cost, at end of project life ($Mn) Useful Life (years) Interest/Discount rate (percent) Correct Answers 1000 300 10% of capital cost 400 9,254 (with margin: 5) 200 20 7 What is the Life Cycle Cost of the project - expressed in future value term? (your answer must be rounded off to the nearest million dollars, i.e., no decimal places)
Engineering Economics19 Please show a step by step solution using Present worth method thanks please
Buying Equipment 1 from XYZ company and company ABC will give the production similar productivity input of 400,000.00 per year. The equipment from company XYZ has a purchase price of 200,000.00, annual maintenance of 5,000.00, and production life of 10 years, while the equipment from company ABC has a purchase price of 100,000.00, annual maintenance of 2,000.00, and production life of 12. Using present worth method, what is the present values of their purchase profit? Use MARR of 20%
Buying Equipment 1 from XYZ company and company ABC will give the production similar productivity input of 400,000.00 per year. The equipment from company XYZ has a purchase price of 200,000.00, annual maintenance of 5,000.00, and production life of 10 years, while the equipment from company ABC has a purchase price of 100,000.00, annual maintenance of 2,000.00, and production life of 12. Using present worth method, what is the total present worth of each alternatives? Use MARR of 20%
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.
110 0 Le000 & (0) A 200 B 3000 2000 らoo0 2800 5000 9f MARR=SI. MARR=81. O x & Y ? MARR = 101 Initial Cost Annual benefit 95|120 Sal vage Value 50 150 use bul libe DO Nothinglon) 3. 200 700 6 yean 12yng