Solve it correctly please. I will rate accordingly. A ompany wishes to invest in a project with cash flows over 10 years. At the end of 10 years, it costs $1,508,000 to dismantle the project equipment. The company's MARR is 24% per year. Use the ERR method(e = 24%) to determine whether the company should invest in this project.End of Year Net Cash Flow-$520,000+ 191,000- 1,508.0000- 1010Click the icon to view the interest and annuity table for discrete compounding when the MARR is 24% per year.The ERR is %. (Round to two decimal places.)According to the ERR method, the projectV economically acceptable. Discrete Compounding; i= 24%Single PaymentCompoundAmountFactorUniform SeriesPresentWorth FactorCompoundAmountFactorSinkingFundCapitalRecoveryFactorPresentWorth FactorFactorTo Find FTo Find PTo Find FGiven ATo Find PGiven ATo Find ATo Find AGiven PGiven FGiven FGiven PFIPPIFFIAPIAAIFAIP11.24000.80651.00000.80651.00001.240021.53760.65042.24001.45680.44640.686431.90660.52453.77761.98130.26470.504742.36420.42305.68422.40430.17590.415952.93160.34118.04842.74540.12420.36423.63520.275110.98013.02050.09110.331174.50770.221814.61533.24230.06840.308419.122924.712585.58950.17893.42120.05230.292396.93100.14433.56550.04050.2805108.59440.116431.64343.68190.03160.27161110.65710.093840.23793.77570.02490.26491213.21480.075750.89503.85140.01960.25961316.38630.061064.10973.91240.01560.25561420.31910.049280.49613.96160.01240.25241525.19560.0397100.81514.00130.00990.24991631.24260.0320126.01084.03330.00790.24791738.74080.0258157.25344.05910.00640.24641848.03860.0208195.99424.07990.00510.24511959.56790.0168244.03284.09670.00410.24412073.86410.0135303.60064.11030.00330.24332191.59150.0109377.46484.12120.00260.242622113.57350.0088469.05634.13000.00210.242123140.83120.0071582.62984.13710.00170.241724174.63060.0057723.46104.14280.00140.241425216.54200.0046898.09164.14740.00110.2411

External Rate of Return (ERR) is formulated by assessing future values of all net revenues and…

Answered: A ompany wishes to invest in a project…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The city of Oak Ridge is considering the construction of a four kilometer (km) greenway walking trail. It will cost $1,000 per km to build the trail and $300 per km per year to maintain it over its 20-year life. If the city’s MARR is 7% per year, what is the equivalent uniform annual cost of this project? Assume the trail has no residual value at the end of 20 years.
A new office building is expected to produce the initial net operating income (NOI) of $10 at time 1. The NOI is expected to grow 5% per year, and the investor expects an annual IRR of 15%. If the construction cost is $90, what is the land value at time 0?
A company purchases a new filtration system by borrowing the $30,000 purchase price. The loan is to be repaid with 4 equal annual payments at an annual compound rate of 12%. It is anticipated that the system will be used for 9 years and then be sold for $2,000. Annual operating and maintenance expenses are estimated to be $9,000/year. A savings of $15,000/year is realized over the present system. The firm uses a MARR of 15% for its economic analyses. Determine PW, AW and FW.
The investment of design 2 is supposed to be $140600. The MARR to be used in the problem is 20%.
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. ROR method2. payout method
An initial investment of P530,000 is estimated to bring in yearly cash inflow of P52,000 for 6 years. On a straight line basis, depreciation is allowed. It is estimated that the project will generate scrap value of P10,000 at end of the 6th year. Calculate its accounting rate of return assuming that there are no other expenses on the project.
A steel highway bridge must either be reinforced or replaced. Reinforcement would cost Rs. 6,60,000 and would make the bridge fit for an additional five years of service. If it is reinforced, it is estimated that its net salvage value would be Rs. 4,00,000 at the time it is retired from service. The new prestressed concrete bridge would cost Rs. 15,00,000 and would meet the foreseeable requirements of the next 40 years. Such a bridge would have no salvage value. It is estimated that the annual maintenance cost of the reinforced bridge would exceed that of the concrete bridge by Rs. 96,000. If the bridge is replaced by a new prestressed concrete bridge, the scrap value of the steel would exceed the demolition cost by Rs. 4,20,000. Assume that the money costs the state 10%. What would you recommend?
What does the annual-equivalent worth (AE) criterion provide?
You bought a new car which you intend to use as a public utility vehicle for P950,000. The expected life of the car is ten (10) years for its intended use. Your driver and you agreed that for the first five (5) years , your “boundary” is P1,500.00 per day and P1,000.00 per day for the rest of its economic life. You also expected a repair and maintenance costs of P30,000 every six (6) months from year one (1) to five (5) and P50,000 from year six (6) to ten (10). At the end of 10 years you can sell the car for P100,000. If your MARR on invested capital is 15% every (6) months, determine whether this is a good investment. show the cash flow diagram?
You bought a new car which you intend to use as a public utility vehicle for P950,000. The expected life of the car is ten (10) years for its intended use. Your driver and you agreed that for the first five (5) years , your “boundary” is P1,500.00 per day and P1,000.00 per day for the rest of its economic life. You also expected a repair and maintenance costs of P30,000 every six (6) months from year one (1) to five (5) and P50,000 from year six (6) to ten (10). At the end of 10 years you can sell the car for P100,000. If your MARR on invested capital is 15% every (6) months, determine whether this is a good investment. Use the Anual Worth method in your solution. Indicate all other assumptions you use in your analysis.Use manually solve and don't use excel.
You bought a new car which you intend to use as a public utility vehicle for P950,000. The expected life of the car is ten (10) years for its intended use. Your driver and you agreed that for the first five (5) years , your “boundary” is P1,500.00 per day and P1,000.00 per day for the rest of its economic life. You also expected a repair and maintenance costs of P30,000 every six (6) months from year one (1) to five (5) and P50,000 from year six (6) to ten (10). At the end of 10 years you can sell the car for P100,000. If your MARR on invested capital is 15% every (6) months, determine whether this is a good investment. Use the Future Worth method in your solution. Indicate all other assumptions you use in your analysis.Use manually solve and don't use excel.
For the given CFD if the MARR (i)=13%, the Net Present Worth, NPW is close to:

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