what is the rate of return for each alternative and for the incremental difference? if the MARR is 10%, which alternative should be selected? Alternatives A and B require investments of $10,310 and $13,400, respectively. Their respective net annual cash inflows are $3,300 and $4,000. What is the rate of return for each alternative and for the

what is the rate of return for each alternative and for the incremental difference? if the MARR is 10%, which alternative should be selected? Alternatives A and B require investments of $10,310 and $13,400, respectively. Their respective net annual cash inflows are $3,300 and $4,000. What is the rate of return for each alternative and for the

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Can you compute the PW of alternative A, the AW of alternative B, the FW of Alternative C, and the PW of alternative D? Also for a MARR of 12%, rank the MEAs from most profitable to least profitable. HINT: You will need to perform additional calculations before answering this question.
Two electric motors (A and B) are being considered to drive a centrifugal pump. Each motor is capable of delivering 60 horsepower (output) to the pumping operation. It is expected that the motors will be in use 1,200 hours per year. If electricity costs $0.09 per kilowatt-hour and 1 hp = 0.746 kW, which motor should be selected if MARR = 7% per year? Refer to the data below.
The four alternatives described below are being evaluated.a. If the proposals are independent, which one(s) should be selected at a MARR of 17% per year?b. If the proposals are mutually exclusive, which one should be selected at a MARR of 14.5% per year?c. If the proposals are mutually exclusive, which one should be selected at a MARR of 10.0% per year? i need solution in equation form
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Only typed answer Beaver, a city in the United States, is attempting to attract a professional soccer team. Beaver is planning to build a new stadium that will cost $360 million. The annual upkeep is expected to amount to $850,000. The turf will have to be replaced every 13 years at a cost of $980,000. Painting every 7 years will cost $97,000. If the city expects to maintain the facility indefinitely, what is the estimated capitalized cost at i = 9% per year? The estimated capitalized cost is $_______
As supervisor of a facilities engineering department, you consider mobile cranes to be critical equipment. The purchase of a new, medium-sized truck-mounted crane is being evaluated. The economic estimates for the two best alternatives are shown in the following table. MARR is at 15% per year. You can use the assumption of repeatability in this case. Show that the same selection is made for the following methods:a. RORAI method b. AWC method c. PW method
Schneeberger, Inc. is considering two alternatives to increase the acceleration of its linear motor actuators. The initial investment required in alternative X is $200,000 and in Y is $150,000. The MARR = 20% per year; a total of $200,000 is available for investment; and the rates of return are i * X = 22% and i * Y = 25% per year. (a) Will the rate of return on the increment of investment between alternatives X and Y be larger or smaller than i*X ? larger or smaller than i * Y? (b) What is the expected i * X-Y?