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

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

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Similar questions

You need to determine whether a project is profitable or not in a long run. Based on the data given, which of theseprojects will be profitable according to engineering economy methods?a. θ = 3 yrs., Net Value: 0b. Accumulated (without interest) net values of the revenues, expenses and investments after 5 years is +300.c. Accumulated (without interest) net values of the revenues, expenses and investments after 4 years is +100.d. θ = 6 yrs., Net Value: +400
Methods of Economy Studies An investment of P 250,000 can be made in a project that will produce a uniform annual revenue of P 192,800 for 5 years and then have a salvage value of 10% of the first cost. Operation and maintenance will be P 72,000 per year. Taxes and insurance will be 4% of the first cost per year. The company expects capital to earn 20% before income taxes. Show whether or not the investment is justified economically using1. Present Worth (PW) method2. Future Worth (FW) method3. Annual Worth (AW) method4. Rate of Return (ROR) method5. Payback (Payout) method
A business invests $5000 and initially plans to achieve annual revenue of $1100/yr with $200/yr expenses (starting at the end of ar 1) for ten years. No market value if used for ten years. 1.If at the end of the sixth year, instead, the investment is sold for $1000, calculate the PW, FW and AW for a BTCF MARR of 12%. Is the investment a good one if used this way? Why?
Consider these two alternatives.Alternative A Alternative BCapital investment OMR 6000 7500Annual revenues OMR 1800 2250Annual expenses OMR 500 750Estimated market valueOMR1200 1600Useful life 10 10MARR 12% 1. Recommend which alternative should be selected.2. How much capital investment of the expensive alternative have to vary so that theinitial decision would be reversed.
a young engineer wishes to become a millionaire by the time he is 60 years old. He belives that by careful investment he can obtain a 15% rate of return. He plans to add a uniform sume of money to his investment program each year, beginning on his 20th birthday and continuing through his 59th birthday. How much money must the enigneer set aside in this project each year? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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Pleasee solve with clear explantion so I can understand, engineering econ
1.b You are faced with a decision on an investment proposal. Specifically, the estimated additional income from the investment is $125,000 per year; the investment cost is $400,000; and the first year estimated expense of $20,000 and will increase a rate of 5% per year. Assume an 8-year analysis period, no salvage value, and MARR = 15% per year. What is the ERR ( Ԑ=MARR) of this proposal? show whole solution, not in excel please
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Give typed explanation only The difference between the present worth of the cash flows is referred to as the net future worth (NFW) True Or False?
An investment of P 270,000 can be made in a project that will produce a uniform annual revenue of P 185,400 for 5 yrs and then have a salvage value of 10% of the investment. Out of pocket costs for operation and maintenance will be P 81,000 per year. Taxes and insurance will be 4% of the first cost per year. The company expects capital to earn not less than 25% before income taxes. Is this a desirable investment?
Alternative 3 is incorrect EUAC=( Equivalent Annaul COst of Initial Investment)+ (Expected Moderate annaual flood damage cost )+ (expected severe annaual flood cost )