10 Six sites have been identified for a parking lot in downtown Blacksburg. Because the sites are plots of land, their salvage value and investment cost are identical. A10-year study period has been specified, and the MARR is 19% per year. Which site should be chosen based on the IRR criterion?E Click the icon to view the alternatives description.Which alternative would you choose as a base one? Choose the correct answer below.O A. Alternative CO B. Alternative E*c. Alternative BXD. Alternative DO E. Alternative AO F. Alternative FAnalyze the difference between the base alternative and the second-choice alternative.IRR AV) =%. (Round to one decimal place.) ABCDEFInvestment cost$80$130$230$370$470$750(thousands)Annual revenue$13$40.5$58$111.5$133.5$163.5minus expense(thousands)IRR on total16.2%31.2%25.2%30.1%28.4%21.8%investment

entified for a parking lot in downtown Blacksburg. Because the sites are plots of land, their salvage value and investment cost are has been specified, and the MARR is 19% per year. Which site should be chosen based on the IRR criterion? view the alternatives description. ld you choose as a base one? Choose the correct answer below. ebetween the base alternative and the second-choice alternative. =%. (Round to one decimal place.)

entified for a parking lot in downtown Blacksburg. Because the sites are plots of land, their salvage value and investment cost are has been specified, and the MARR is 19% per year. Which site should be chosen based on the IRR criterion? view the alternatives description. ld you choose as a base one? Choose the correct answer below. ebetween the base alternative and the second-choice alternative. =%. (Round to one decimal place.)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

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The estimated negative cash flows for three design alternatives are shown below. The MARR is 10% per year and the study period is four years. Which alternative is best based on the IRR method? Doing nothing is not an option. A. Alternative B OB. Alternative C OC. Alternative A Capital investment Annual expenses EOY 0 IRR A( 1-4 A $85,700 8,500 Alternative B $64,500 Which alternative would you choose as a base one? Choose the correct answer below. 15,150 Analyze the difference between the base alternative and the second-choice alternative. 7)=[ %. (Round to two decimal places.) C $71,900 12,450
Given the data for three different alternatives in the table below, determine the best alternative using the incremental rate of return (∆RoR) analysis. MARR =9%. A B C First Cost $15,000 $25,000 $20,000 O &M Cost/ year 1,600 400 900 Benefit/year 8,000 13,000 9,000 Salvage value 3,000 6,000 4,600 Life in years 4 4 4 Group of answer choices Cannot determine Alterative A Alterative B Alterative C
Alternative Overall Incremental Rate Of Return in % When Initial Alternative Investment,$ Rate of Return, % Compared with Alternative A В A - 40,000 29 B - 75,000 15 1 -100,000 16 7 20 D -200,000 14 10 13 12 If the alternatives are independent, which should be selected if the company's MARR is 15% per year? (Include: procedure and explain) O Only alternative A O Alternatives A and B O Alternatives A and C Alternatives A, B, and C O O
Given the following pertinent data for four alternatives, what is the best alternative using the incremental ROR method given MARR=10% Initial Cost Annual CF, $ Life, years 30 O Alt. A Alt. B O Alt. C A O Alt. D B +22,000 +35,000 с -200,000 -275,000 -190,000 -331,350 30 D +19500 +42,000 30 30
Any help would be appreciated! Given the data for three different alternatives in the table below, determine the best alternative using the incremental rate of return (∆RoR) analysis. MARR =9%. A B C First cost $15,000 $25,000 $20,000 O &M Cost/ year 1,600 400 900 Benefit/year 8,000 13,000 9,000 Salvage value 3,000 6,000 4,600 Life in years 4 4 4 1. The better alternative between the first increment is ________________. A. Alt. A or Alt. B B. Alt. A C. Alt.C D. Alt. B 2. The better alternative between the second increment is ___________________. A. Alt. B or Alt. C B. Alt. B C. Alt. C D. Alt. A
Evaluate the two alternatives A and B and decide the economic justified alternative using: Present worth method Annual worth method Future worth method I.R.R method E.R.R Method E.R.R.R method M.A.R.R = 15% the details of alternatives are shown in the table below Alternatives A Investments $6,000 $7,500 Useful life (years) 10 Annual disbursements $2,500 $3,500 Annual revenues $4,500 $6,000 Salvage values $500 $1,000
Three independent alternatives are given below. If MARR is 18%, what is your decision? A B C Initial Cost $4.50 $1.90 $1.20 Annual Revenues $4.00 $2.50 $3.00 Salvage Value $0.50 $0.90 $0.00 Annual Operating & Maintenance Costs $1.20 $1.90 $2.70 Estimated life, in years 3 Infinite
A city government feels that the energy production capacity must be expanded to meet anticipated demands for energy. There are three alternatives to consider: @A nuclear facility with an investment of $250 million, operating costs of $3 million per year and life of 20 years. @ A coal plant with an investment of $200 million operating costs of $10 million per year and a life of 20 years. 26°C I P Type here to search
The estimated negative cash flows for three design alternatives are shown below. The MARR is 10% per year and the study period is four years. Which alternative is best based on the IRR method? Doing nothing is not an option. Capital investment Annual expenses OA. Alternative B OB. Alternative C OC. Alternative A EOY 0 1-4 A $85,700 8,500 Alternative B $64,500 Which alternative would you choose as a base one? Choose the correct answer below. 15,150 C $71,900 12,450
Determine the process to compare alternatives on an equal basis and select the alternative that is wisest from an economic standpoint?
The estimated negative cash flows for three design alternatives are shown below. The MARR is 14% per year and the study period is five years. Which alternative is best based on the IRR method? Doing nothing is not an option. Capital investment Annual expenses EOY 0 A. Alternative C B. Alternative B OC. Alternative A 1-5 CLEAN A $81,500 7,500 Alternative B $64,400 12,620 Which alternative would you choose as a base one? Choose the correct answer below. Analyze the difference between the base alternative and the second-choice alternative. C $71,000 10,420
Determine the present worth, future worth, and annual worth of the following engineering project when the MARR is 15% per year. Is the project acceptable? Investment cost $10,000Expected life 5 yearsMarket (salvage) value $1,000Annual receipts $8,000Annual expenses $4,000