i need the answer quickly The cash flows of two alternatives are given below. Determine the difference in the no-return payback periodfor both altermatives.AlternativesAFirst cost, $20,00026,000NCF, $ per year2,000 (year 1-3)3.500 (year 4-10)2,500 (year 1-4)4,000 (year 5-10)S.S1,5002000Life, year1010O 8 months between both alternativesO 6 months between both alternativesO 12 months between both altermatives07 months between both alternatives

We can calculate the payback period of both alternative firm , after that we can find the no return…

Answered: The cash flows of two alternatives are…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. The HVAC engineer for a company constructing one of the world's tallest buildings (Shanghai Financial Center in the People's Republic of China) has requested that $500,000 be spent now during construction on software and hardware to improve the efficiency of the environmental control systems. This is expected to generate revenue of $95,000 per year, and Maintenance and energy cost is assumed to be $85,000 annually. It also expected that there is a $100,000 salvage value at the end of 10 years. If MARR = 5%, a) What is the first year Rate of Return of this proposal? b) What is the excess, using annual worth method, of this proposal? c) Compute the Net Future Worth of this proposal? d) What is the simple payback period for this proposal? e) What is your conclusion on the about the acceptability of this proposal?
The cost of making a small transistor radio is 23.00 php in labor costs and 37.00 php in material costs. The fixed cost of running the system is P 100,000.00 per month. The variable cost is P1.00 per set. The price of the radio is php75.00 each. Determine how many sets must be produced each month in order to break even. inlcude cash flow diagram
What is the future value of $4500 per year for 10 years invested at 5%? * a. $56,600 b. $7,330 c. $45,000 d. $38,908
A new project is being planned for a study period of 8 years. It will require P250,000 for the start-up and after theend of the first year, P13,500 shall be paid for its innovation. The board then requires to add another modifiedtechnology which will cost P25,000 by the end of the second year. After the end of third year, the project will startto earn P57,500 annually. Calculate the annual effective interest rate using ERR method if the interest rate externalto this project (ε) is 13.75%.
A new project is being planned for a study period of 8 years. It will require P250,000 for the start-up and after theend of the first year, P13,500 shall be paid for its innovation. The board then requires to add another modifiedtechnology which will cost P25,000 by the end of the second year. After the end of third year, the project will startto earn P57,500 annually. Calculate the annual effective interest rate using ERR method if the interest rate externalto this project (ε) is 13.75%. Please solve using economics formula.
ENGINEERING ECONOMICS Bawal Gumamit ng Excel( Don't use Excel) A small company purchased now for 1.15M will lose 75,000 each year for the first 4 years. An additional P400,000 invested in the company during the 4th year will result in a profit of 27,500 from the 5th year through the 15th year. At the end of 15 years, the company can be sold for 1.65M.a. Determine the IRR.b. Calculate FW if MARR is 12%/year.c. Calculate ERR ϵ = 12% per year.
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A printing press machine has a cash equivalent ofP250,000. For the first three years, it will provideP20,000 worth of profit each year. For the nextfour years, annual profit will be P35,000. For thelast two years, expenses will exceed revenues andwill have a loss of P10,000 each year. Calculatethe acceptability of this investment using FWmethod if MARR is 18% per year. What is ERR if ϵ= 15%? Answers: FW=-683, ERR=4.84% kindly show detailed solution
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A concrete pavement on a street would cost 10,000 and wouldlast for 5 years with negligible repairs. At the end of each 5years, 1,000 would be spent to remove the old surface before10,000 is spent again to lay a new surface. Find the capitalizedcost of the pavement at 5%.

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