Question
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 the Lead Acid is
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
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 manufacturing firm is considering two mutually exclusive alternatives given below. The net cash flows in...
"A manufacturing firm is considering two mutually exclusive
alternatives given below. The net cash flows in dollars for years 0
through 2 for Project A is:
-4,200
2,500
2,100
The net cash flow in dollars for years 0 through 2 for Project B
is:
-7,400
4,900
5,700
Determine which project is a better choice if MARR = 11%. Enter the
IRR as a percentage between 0 and 100 for the project that is a
better choice. If neither project should...
A large utility company is considering two mutually exclusive methods for storing its coal combustion by-products....
A large utility company is considering two mutually exclusive
methods for storing its coal combustion by-products. One method is
wet (slurry) storage and the second method is dry storage. The
company must adopt one of those two methods for all 2B of its ash
and gypsum impoundments at seven coal-fired power plants. Wet
storage requires an initial investment of S2 billion, followed by
annual maintenance expenses of S300 million over a 10-year period
of time. Dry storage has a $2.5...
Consider the two mutually exclusive projects in the table below. Salvage values represent the net proceeds...
Consider the two mutually exclusive projects in the table below.
Salvage values represent the net proceeds (after tax) from
disposal of the assets if they are sold at the end of each year.
Both projects B1 and B2 will be available (or can be repeated)
with the same costs and salvage values for an indefinite
period.
B1
B2
n Cash Flow Salvage Value Cash
Flow Salvage Value
0 -$23,000 -
-$24,000 -
1 -2,300 11,500
-1,600 8,000
2 ...
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
A manufacturing firm is considering two mutually exclusive alternatives given below. The net cash flows in...
A manufacturing firm is considering two mutually exclusive
alternatives given below. The net cash flows in dollars for years 0
through 2 for Project A is:
-4,000
3,300
3,000
The net cash flow in dollars for years 0 through 2 for Project B
is:
-6,400
4,400
4,200
Determine which project is a better choice if MARR = 11%, or if
neither project should be chosen.
The following data have been estimated for two mutually exclusive investment alternatives, A and B. Incremental...
The following data have been estimated for two mutually
exclusive investment alternatives, A and B. Incremental ROR
analysis was perform to select more desirable alternative. If MARR
= 12%, the value of incremental cash flow for year 3 is:
A
B
Capital Investment
-8000
-13000
Annual Cash Flow
-3500
-1600
Salvage Value
0
2,000
Useful life
5
5
-$1900
+$1900
-$3,500
+$3,500
Consider the following two mutually exclusive alternatives for reclaiming a deteriorating inner-city neighborhood (one of them...
Consider the following two mutually exclusive alternatives for
reclaiming a deteriorating inner-city neighborhood (one of them
must be chosen). Notice that the IRR for both alternatives is
27.18%.
a. If MARR is 15% per year, which alternative
is better?
b. What is the IRR on the incremental cash
flow [i.e.,Upper Δ(Y−X)]?
c. If the MARR is 27.5% per year, which
alternative is better?
d. What is the simple payback period for each
alternative?
EOY
x
y
0
-$100,000
-$100,000
1...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 5 minutes ago
asked 18 minutes ago
asked 21 minutes ago
asked 23 minutes ago
asked 27 minutes ago
asked 33 minutes ago
asked 35 minutes ago
asked 47 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 2 hours ago