1) Consider the follows Projects: If MARR- 17%. Recommend the best choice based upon ROR analysis:с-8001900BOYDInitial CostAnnual income-2000260Salvage valueLife01010Known ROR22%18%16.9%Need exact value of the incremental ROR on the last comparison. Others need its reasonable range for proper decision inthe process.-50014001024%B-1000250010

To perform incremental rate of return analysis the condition of equal service life requirement must…

1) Consider the follows Projects: If MARR- 17%. Recommend the best choice based upon ROR analysis: с -800 190 BOY Initial Cost B -1000 250 0 A -500 140 Annual income Salvage value 0 Life 10 10 10 Known ROR 24% 22% 18% 16.9% Need exact value of the incremental ROR on the last comparison. Others need its reasonable range for proper decision in the process. 0 10 D -2000 260 0

1) Consider the follows Projects: If MARR- 17%. Recommend the best choice based upon ROR analysis: с -800 190 BOY Initial Cost B -1000 250 0 A -500 140 Annual income Salvage value 0 Life 10 10 10 Known ROR 24% 22% 18% 16.9% Need exact value of the incremental ROR on the last comparison. Others need its reasonable range for proper decision in the process. 0 10 D -2000 260 0

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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%
a. The PW of the Gas Heating Option is b. The PW of the Geothermal Heating Option is c. The lower cost alternative is the geothermal heating option
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PLABOR МIC $7.00 -S $5.25 $4.50 MVP QLABOR 1000 1500
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PW values of a project were calculated for several values of (i). The results were plotted as shown in the figure. What are the values of ROR (i*) for this project? Put only integer numbers followed immediately by "%" sign 200.000 150,000 100,000 50,000 1- -50,000 -100,000 -150,000 2- -30% -20% -10% 0% 10% 20% 30% Interest rate i, % PW value. $
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Fill in the missing values: QP TC TB Tprofit MC MB Mprofit ATC AFC AVC 16 500-50 ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ 16 132 16 16 156 16 186 0 5 6 7 8 16 9 16 272 10 16 332 16 224
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