Jean believes the batteries can be expected to last only for theguarantee period. She does not want to invest extra money in abattery unless she can expect a 40% rate of return. If she plans tokeep her present car another 2 years, which battery should she buy?Two investment opportunities are as follows:A BFirst cost$200 $100Uniform annual benefit2520End-of-useful-life salvage value 45Useful life, in years1510At the end of 10 years, Alt. B is not replaced. Thus, the comparison is15 years of A versus 10 years of B. If the MARR is 8%, whichalternative should be selected?

This question is solved using Excel financial calculator. Formula: Excel - formula - financial -…

Answered: an believes the batteries can be…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

How much money would have to be placed in a sinking fund each year toreplace machine B at the end of 25 years if the fund yields 10% annualcompound interest and if the first cost of the machine is assumed toincrease at a 6% annual compound rate? (Assume the salvage value doesnot change.) Group of answer choices A. $3,600 B. $4,110 C. $2,400 D. $7,000
John is assessing whether a more efficient motor with a life of 10 years should be installed on aproduction line. If the interest rate is 10%, what is the present value of the energy savings?(a)Energy savings are projected at $16000 for the first year, then increasing by 7% annually.(b)What if the energy savings are increasing by 10% annually?
A) If a company will pay $100,000 for a truck that will increase deliveries to be made, giving an additional $15,000 in revenue each year for 10 years, should the company buy it? Interest rates are 5%. B) Now revenue is estimated to be only $12,000 a year for 10 years. Same interest rate, should the truck be purchased?
ligthing first cost of investment is $120,000. annual mtnce expenses are expected to be $6600 for the first 22 years and $9000 for each year thereafter. N=infinety amt of time, interest,i=12% per year, what is the capatalized cost of this project? the annuity table for value N=22 as follows: F/P=12.1003 P/F=.0826 P/A=7.6446 I tried mutliple ways to show and I can't figure it out. the answer is $176,653. Any suggestions is greatly appreciated. Thanks
9. The company buys a vehicle, n=18 first cost=60000 on 1st 7th and 14th years earning from the vehicle is 12000 and other years earnings are annual equally amount of x, i=8%, what is x that reach equilibrium on the cash flow series over the life of the vehicle?
An Engineer bought an equipment and have paid P 100,000 cash andagreed to pay P20,000 at the end of each 6 months for 5 years. He failedto pay the first 5 payments. At the end of 3 years, he is required to pay allaccumulated and future liabilities, otherwise the equipment would beretrieved by the seller. What must he pay if money is worth 12%compounded semi-annually?
Question 888 M A mining company CEO wants to help provide college education for the daughter of a high performance underground worker. He can afford to invest $750/yr. for the next 4 years, beginning on the student’s fourth birthday. He wishes to give the future student $5,000 on her 18th, 19th, 20th, and 21st birthdays, for a total of $20,000. Assuming 6% interest, what uniform annual investment will he have to make on the girl’s 8th through 17th birthday? show all steps clearly Full explain this question and text typing work only thanks
Calculate the future value if present value (PV) = $1548, interest rate (r) = 9.0% and number of years (t) = 18
A machine Costs = $30000, O&M = $2000/year, Savings = $10000/year, Salvage @ 5 years = $7000. i = 10%. what is net present worth(after 5 years).
Liam dreams of starting her own business to import consumer electronics products to the country. she estimates she can earn 12% of her investment and that she will need to have $300000 at the end of year 10 if she wants to give her business a good solid foundation. she now has $28850 in her account in her account, and she believes she can save 12000 dollars each year from her income, beginning now. She plan to marry at about the end of year 6 and we'll keep the investment contribution that year. How far below or above her 300,000 dollars goal will he be?
4. A manufacturing company spent $30,000 on a new conveyor. If the conveyor generates cost savings of $4200 per year, the length of time it will take for the company to recover its 8% annual investment at most is: A. Less than 9 years B. 9 to 10 years C. 11 to 12 years D. More than 12 years Please solve based the option max 20 minutes ASAP
Which one is a better scenario for your initial investment Rp 10,000,000.001) A 10-years investment with a constant 8% interest rate2) A two-stages investment with the first stage you will receive 10% interest rate annually for six years and followed by 6% in the last four years.

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