for the following alternatives, which one would you prefer based on B/C analysis if the alternatives are ME and the interest rate is 10% per year and the study period is 20 years? A B Initial cost 600,000 50,000 950,000 1,100,000 70,000 250,000 АОС Disbenefits
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- You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for manufacturing high-pressure hydraulic hoses. The parameters associated with each alternative have been estimated. Which one should be selected on the basis of a present worth comparison at an interest rate of 11% per year? Why is yours the correct choice? Alternative X Y First Cost $-30,000 $-60,000 Maintenance cost, per year $-9000 $-3000 Salvage Value $1,500 $2,500 Life 5 years 5 years The present worth of alternative X is $ __ and that of alternative Y is$ __. Alternative __ is selected by the company.You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for manufacturing high-pressure hydraulic hoses. The parameters associated with each alternative have been estimated. Which one should be selected on the basis of a present worth comparison at an interest rate of 15% per year? Why is yours the correct choice? Alternative X Y First Cost $-25,000 $-80,000 Maintenance cost, per Year $-13000 $-7000 Salvage Value $3,500 $4,500 Life 5 years 5 years The present wortIt is proposed to place a cable on existing pole line along the shore of a lake to connect two points on opposite sides. Which is more economical?Compare alternatives using the following methods:a) ROR on Additional Investment Methodb) Annual Cost Methodc) Equivalent Uniform Annual Cost Methodd) Present Worth Cost Method
- A project has a first cost of $200,000 with annual costs of $50,000 and revenue of $90,000 per year.What is the payback period at (a) no-return, and (b) i = 7% per year?A contractor has a 4-year concrete mixer whose first cost was $6,000, having 3 more years to live before being scrapped and sold at $801. Itcould now be sold for $11,922. It has an annual cost for operation and maintenance of $9,352. Its replacement is being proposed with a newmachine whose first cost will be $8,000 having a life of 9 years and salvage value $1,600. It has an operating cost of $800 per year andmaintenance cost of $320 per year. Ifthe interest is 20% cpd-a, what is the Annual Equivalent Cost of the Old Machine? 14,792Two production methods are proposed. Method A cost $60,000 initially, will have an operating cost (ANNUAL) of $28,000 per year, and salvage of $15,000. Method B will have a first cost of $120,000, operating cost of $8,500 per year (ANNUAL) and salvage value of $40,000. Both have 3 year life and use a MARR of 12%. Using PW, which one would you select? Answer neatly ASAP with proper explanation of it Thank you
- There are 5 national projects with infinite life time listed below. Select the best two projects if MARR is 8% per year using rate of return analysis? Project First Cost A 2000 B 1000 C 1500 D 7000 E 5000 ORDER: Annual income 200 130 150 600 260 Calculate i* for each alternativeA company that makes food-friendly silicone (for use in cooking and baking pan coatings) is considering the independent projects shown, all of which can be considered to be viable for only 10 years. If the company’s MARR is 15% per year, determine which should be selected on the basis of a present worth analysis. Financial values are in $1000 units. A B C D First cost, $ −1,200 −2,000 −5,000 −7,000 Annual net income, $/year 200 400 1100 1300 Salvage value, $ 5 6 8 7You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for manufacturing high-pressure hydraulic hoses. The parameters associated with each alternative have been estimated. Which one should be selected on the basis of a present worth comparison at an interest rate of 12% per year? Why is yours the correct choice? Alternative X Y First cost, $ −45,000 −58,000 Maintenance cost, $/year −8,000 −4,000 Salvage value, $ 2,000 12,000 Life, years 5 5
- It is proposed to place a cable on existing pole line along the shore of a lake to connect two points on opposite sides. Which is more economical? Compare alternatives using the following methods:a) ROR on Additional Investment Methodb) Annual Cost Methodc) Equivalent Uniform Annual Cost Methodd) Present Worth Cost Method Show complete manual solutionCompare the following investment alternatives using ROR analysis. MARR is %12 per annum. Alternative-A Alternative-B First cost, $ 240,000 450,000 Uniform annual benefit, $ 52,000 84,000 Salvage value, $ 120,000 230,000 Life, year 20 InfiniteThe first cost of a fairly large flood control dam is expected to be $5 million. The maintenance cost will be $60,000 per year, and a $100,000 outlay will be required every 5 years. At interest of 10%, find the EUAC of the dam project.