Consider projects X and Y below. If theMARR is 8%, what is the PW of X and Yrespectively, given a LCM life analysis?YFC-15,000 -28,000AOC-6,000-9,000Rebuild cost,-2000year 4SV3,0005,00048Group of answer choices-$56,679 and -$78,486-$53,806 and -$78,486-$51,757 and -$75,048-$51,757 and -$74,042

Given MARR = 8 % with LCM analysis the life of both the project is compared with same multiple of 8…

Answered: Consider projects X and Y below. If the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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A five-year project has an initial fixed asset investment of $613,600, an initial net working capital investment of $22,200. The project will have an annual operating cash flow (OCF) of (-$76,540). The fixed asset is fully depreciated over the life of the project and has no salvage value. The net working capital will be recovered when the project ends. The required return is 11.7 percent. What is the project's equivalent annual cost, or EAC? O-$248,052.76 O-$182,309.18 O-$147,884.01 O $242,212.22
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1. The Present Worth Method A project your firm is considering for implementation has these estimated costs and revenues: an investment cost of $50,000; maintenance costs that start at $5,000 at the end of year (EOY) 1 and increase by $1,000 for each of the next 4 years, and then remain constant for the following 5 years; savings of $20,000 per year (EOY 1–10); and finally a resale value of $35,000 at the EOY 10. If the project has a 10-year life and the firm’s MARR is 10% per year, what is the present worth of the project? Is it a sound investment opportunity?

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Consider 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 уear 4 SV 3,000 5,000 4 8 Group of answer choices -$56,679 and -$78,486