Question
Consider the following alternatives: &
Consider the following alternatives:
A B C
Initial Cost $250 $600 $200
Uniform annual benefits 31 92 35
Each alternative has a ten-year useful life and no salvage value.
MARR is 8%, which alternative should be selected. Show work.
Calculate each rate for options and increments.
PLEASE SOLVE ON AN EXCEL SPREADSHEET!
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
A company is considering 3 mutually exclusive alternatives along with "Do-Nothing" as part of a new...
A company is considering 3 mutually exclusive alternatives along
with "Do-Nothing" as part of a new quality improvement initiative.
The alternatives are in the table below. For each alternative, the
salvage value at the end of the useful life is zero. At the end of
10 years, Alternative Z can be replaced by another Z with identical
costs and benefits. If the MARR is 6.5 %, and the analysis period
is 20 years, which alternative should be selected?
X
Y...
Consider three mutually exclusive alternatives. The MARR is 10%based on the payback period method, which alternative...
Consider three mutually exclusive alternatives. The MARR is
10%based on the payback period method, which alternative should be
selected?
Year
X
Y Z
0
-$100 -$50 -$50
1
25
16 21
2
25
16 21
3
25
16 21
4
25
16 21
Consider three mutually exclusive alternatives, each with a 20
year life span and no salvage value. The minimum attractive rate of
return is 6%.
A
B
C
Initial
Cost
$4000
$8000
$10,000
Uniform Annual Benefit
($)
410 ...
Consider four mutually exclusive alternatives, each having an 8-year life: A. B. C. D. First cost:...
Consider four mutually exclusive alternatives, each having an
8-year life:
A. B. C. D.
First cost: $1000. $800. $600. $500
Uniform annual: 152. 120. 97. 122
Benefit
Salvage value: 750. 500. 500 0
If the minimum attractive rate of return is 12%, which
alternative should be selected? Use the incremental analysis
method
Consider the three mutually exclusive alternatives below. At the end of their useful lives, Alternatives X...
Consider the three mutually exclusive alternatives below. At the
end of their useful lives, Alternatives X and Z will be replaced
with identical replacements so that a 10-year service requirement
is met. If the MARR is 3% per year, which alternative (if any)
should be chosen based on the annual worth method?
Alt
X
Alt
Y
Alt
Z
Capital investment
$300,000
$425,000.
$500,000.
Annual savings
$68,750
$108,750.
$188,750.
Salvage value
$90,000
$125,000.
$140,000.
Life, years
10
20
5
Consider the following mutually exclusive alternatives: Alternative A Alternative B Capital investment Net annual receipts $702,000...
Consider the following mutually exclusive alternatives:
Alternative A
Alternative B
Capital investment
Net annual receipts
$702,000
$123,550
$1,656,000
$276,200
Both alternatives have a useful life of 12 years and no market
value at that time. The MARR is 12 % per year. Determine the annual
worth (AW) of the most profitable course of action. (Enter your
answer as a number without the dollar sign.)
A firm is considering three mutually exclusive alternatives as part of a production improvement program.The alternatives...
A firm is considering three mutually exclusive alternatives as
part of a production improvement program.The alternatives are:
A B
C
Installed cost $10,000 $15,000 $ 20,000
Annual benefit 1625 1530 1890
Useful life (Years) 10 20 20
The salvage value of each alternative is zero.At the end of 10
years Alternative A could be replaced with another A with identical
cost and benefits .
a)Which alternative should be selected if interest is 6%
b)3%
c)If there is a difference between...
Suppose the MARR is 5%. Use the following table to answer the question--Which option should be...
Suppose the MARR is 5%. Use the following table to answer the
question--Which option should be selected as the base
alternative?
CMS
FMS
Initial Investment
$31,000
$38,000
Annual Revenue
6,688
9,102
Useful Life (Years)
5
5
A.
CMS
B.
I'm completely lost!
C.
Neither option is acceptable as a base alternative.
D.
FMS
E.
Both options are acceptable base alternatives.
Suppose the MARR is 3%. Use the following table to answer the
question--Which option should be selected as the challenger...
Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The...
Consider the following EOY cash flows for two mutually exclusive
alternatives (one must be chosen). The MARR is
4%
per year.
Lead Acid
Lithium Ion
Capital investment
$5,000
$13,000
Annual expenses
$2,250
$2,500
Useful life
12 years
18 years
Market value at end of useful life
$0
$2,600
LOADING...
Click the icon to view the interest and annuity table for
discrete compounding when
i=4%
per year.
Determine which alternative should be selected if the
repeatability assumption applies.
The AW of...
Compare the alternatives using IRR (internal rate of return) method. MARR is 11% per year. Alternative...
Compare the alternatives using IRR (internal rate of return)
method. MARR is 11% per year.
Alternative 1
Alternative 2
First cost
176360
268330
Annual revenue
23960
19450
Salvage value
22310
30240
Life, years
∞
∞
in excel please!!
Compare two mutually exclusive alternatives below using annual worth analysis at MARR = 10% per year....
Compare two mutually exclusive alternatives
below using annual worth analysis at MARR = 10%
per year. Which alternative should be selected?
Alternatives
Alternative 1
Alternative 2
First cost, $
-90,000
-750,000
Annual cost, $/year
-50,000
-10,000
Salvage value, $
8,000
-
Life, years
5
∞
Alternative 2 and -$85,000
Alternative 1 and -$72,450
Alternative 2 and -$72,450
Alternative 1 and -$65,000
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 17 minutes ago
asked 32 minutes ago
asked 43 minutes ago
asked 47 minutes ago
asked 52 minutes ago
asked 52 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 2 hours ago