Time left 0:14:27A company is considering two machines. Machine X has a first cost of $30,000, AOC of $18,000, and S of $7000 after 4 years. Machine Ywill cost $50,000 with an AOC of $16,000 and 5 of $9000 after 6 years. The AW equations for Machine X and Y at 12% interest rates, are:Select one:O a. AWX=-30,000(A/P,12%, 12)-18,000 +7,000(A/F, 12%, 12); AWY= -50,000(A/P, 12%, 12)-16,000+ 9,000(A/F,12%, 12)O b. AWX=-30,000(A/P, 12%, 4) -18,000 +7,000(A/F, 12%6,4); AWY= -50,000(A/P,12%,6)-16,000+ 9,000(A/F,12%,6)OC. AWX=-30,000(A/P, 12%, 24) -18,000 +7,000(A/F,12%,24); AWY -50,000(A/P,12%, 24) -16,000+ 9,000(A/F, 12%,24)O d. AWX=-30,000(A/P, 12 %, 6) -18,000 +7,000(A/F, 12%,6); AWY= -50,000(A/P,12%,6) -16,000+ 9,000(A/F, 12 %,6)Which of the following statements is correct?O a. MARR is set higher than the WACCb. MARR is set by the financial manager of a company.OcA project that is economically justified should have a ROR higher than MARR.

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Which of the following statements is correct? O a. MARR is set higher than the WACC b. MARR is set by the financial manager of a company. c. A project that is economically justified should have a ROR higher than MARR.

Which of the following statements is correct? O a. MARR is set higher than the WACC b. MARR is set by the financial manager of a company. c. A project that is economically justified should have a ROR higher than MARR.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Time left 0:14:27
A company is considering two machines. Machine X has a first cost of $30,000, AOC of $18,000, and S of $7000 after 4 years. Machine Y
will cost $50,000 with an AOC of $16,000 and 5 of $9000 after 6 years. The AW equations for Machine X and Y at 12% interest rates, are:
Select one:
O a. AWX=-30,000(A/P,12%, 12)-18,000 +7,000(A/F, 12%, 12); AWY= -50,000(A/P, 12%, 12)-16,000+ 9,000(A/F,12%, 12)
O b. AWX=-30,000(A/P, 12%, 4) -18,000 +7,000(A/F, 12%6,4); AWY= -50,000(A/P,12%,6)-16,000+ 9,000(A/F,12%,6)
OC. AWX=-30,000(A/P, 12%, 24) -18,000 +7,000(A/F,12%,24); AWY -50,000(A/P,12%, 24) -16,000+ 9,000(A/F, 12%,24)
O d. AWX=-30,000(A/P, 12 %, 6) -18,000 +7,000(A/F, 12%,6); AWY= -50,000(A/P,12%,6) -16,000+ 9,000(A/F, 12 %,6)
Which of the following statements is correct?
O a. MARR is set higher than the WACC
b. MARR is set by the financial manager of a company.
OcA project that is economically justified should have a ROR higher than MARR.

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