For the following alternatives compute the Delta B/C ratio of Alternative D minus Alternative A. Use 11% as MARR. (Remember for our convention, salvage value is a minus cost.) Project Initial Investment Annual Benefit Salvage Value Useful Life A B D -1500 -2000 -2500 -5200 350 500 600 850 320 610 820 2300 5 6 7 1.73 1.18
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- Select the best alternative through internal rate of return analysis. Assume that the minimum attractive rate of return is 10% per year. Machine X |Machine YInitial cost $ 400,000.00 $ 500,000.00Annual operating cost $ 15,000.00 |$ 25,000.00 Annual profit $ 20,000.00 |$ 40,000.00Residual value $ 85,000.00 |$ 100,000.00Project life 15 years | none Engineering Economic AnalysisGiven the following pertinent data for four alternatives, what is the best alternative using the incremental ROR method given MARR=10% Initial Cost Annual CF, $ Life, years 30 O Alt. A Alt. B O Alt. C A O Alt. D B +22,000 +35,000 с -200,000 -275,000 -190,000 -331,350 30 D +19500 +42,000 30 30Determine the present worth, future worth, and annual worth of the following engineering project when the MARR is 15% per year. Is the project acceptable? Investment cost $10,000Expected life 5 yearsMarket (salvage) value $1,000Annual receipts $8,000Annual expenses $4,000
- For the following table, if the MARR is 10% per year and a useful life for each alternative of six years that equals the study period. The rank order of alternatives from least capital investment to greatest capital investment is Do nothing Fill the table with the missing values. > A C в Do nothing > A ? (2) ? (4) A capital investment A annual revenues A annual costs A market value A IRR -15,000 -2000 -3000 4,000 900 460 -150 -1,000 6,000 -100 -2,220 3,350 ? (5) (6) 12.7% 10.9% Alternative chosen (1) (3) 1. write the alternative chosen 2. write the two alternatives compared 3. write the alternative chosen 4. write the two alternatives compared 5. what is IRR incremental (final answer) 6. write the alternative chosenThree independent alternatives are given below. If MARR is 18%, what is your decision? A B C Initial Cost $4.50 $1.90 $1.20 Annual Revenues $4.00 $2.50 $3.00 Salvage Value $0.50 $0.90 $0.00 Annual Operating & Maintenance Costs $1.20 $1.90 $2.70 Estimated life, in years 3 InfiniteFor th below two machines and based on CC analysis which machine we should select? MARR=10% Machine A Machine B First cost, $ Annual cost, $/year Salvage value, $ Life, years 3 Answer the below question: B- the CC for machine B= 20,538 11,820 7,655 infinite 113,798 8,894
- Any help would be appreciated! Given the data for three different alternatives in the table below, determine the best alternative using the incremental rate of return (∆RoR) analysis. MARR =9%. A B C First cost $15,000 $25,000 $20,000 O &M Cost/ year 1,600 400 900 Benefit/year 8,000 13,000 9,000 Salvage value 3,000 6,000 4,600 Life in years 4 4 4 1. The better alternative between the first increment is ________________. A. Alt. A or Alt. B B. Alt. A C. Alt.C D. Alt. B 2. The better alternative between the second increment is ___________________. A. Alt. B or Alt. C B. Alt. B C. Alt. C D. Alt. AConsider projects X and Y below. If the MARR is 8%, what is the PW of X and Y respectively, given a LCM life analysis? Y FC -15,000 -28,000 AOC -6,000 -9,000 Rebuild cost, -2000 year 4 SV 3,000 5,000 4 8 Group of answer choices -$56,679 and -$78,486 -$53,806 and -$78,486 -$51,757 and -$75,048 -$51,757 and -$74,042An electronics firm is planning to manufacture a new handheld gaming device for the preteen market. The data have been estimated for the product. Assuming a negligible market (salvage) value for the equipment at the end of five years, determine the breakeven annual sales volume for this product.
- Evaluate the two alternatives A and B and decide the economic justified alternative using: Present worth method 3 Annual worth method, Future worth method E.R.R Method , E.R.R.R method I.R.R method M.A.R.R=15%, the details of alternatives are shown in the table below Alternatives A B Investments $120,000 $155,000 Useful life (years) 15 20 Annual disbursements $25,000 $35,000 Annual revenues $45,000 $60,000 Salvage values $25,000 $30,000The General Hospital is evaluating new office equipment offered by three companies. Cost Annual benefit End of useful life salvage value Useful life (yrs) Select one: 9.5% 8.5% 7.5% Company A $500 $130 $0 10.5% 5 The incremental rate of return between Company B and Company C is close to Company B $600 $115 $250 5 Company C $700 $100 $180 10These data were derived from a forest inventory and are to be used to calculate the best (most revenue return) rotation. The manager wishes to maximize net income and has the following information: Establishment Costs: $175/acre Thinning and burning at age 17 cost: $75 Stumpage sells for: $41/unitvol MAR: 6.7% Annual Expenses: $8/acre Inventory Data over Life of the Forest Stand (Ages 0-60 years) Stand age (vol/acre) 15 5.13 20 13.98 25 25.22 30 35.11 35 44.19 40 51.85 45 56.79117447 50 63.03092644 55 68.76322479 60 74.05934015