Four mutually exclusive projects are being considered for a new two-mile jogging track. The life of the track is expected to be 80 years, and the sponsoring agency's MARR is 12% per year. Annual benefits to the public have been estimated by an advisory committee and are shown below. Use the IRR method to select the best jogging track.
Q: Use Excel® to solve the following problem. An eight-year life project has an initial capital…
A: Given, An eight year life project Initial Capital expenditure= $450,000 Annual Income=$300,000 at…
Q: The cost of maintaining a permanent monument is expected to be $70,000 now and $70,000 every 10…
A: Given: The cost of maintaining a project is (PV) = $70,000 The future value of this project is (FV)…
Q: PVs and IRRs for Mutually Exclusive Projects Davis Industries must choose between a gas-powered and…
A: Net present value (NPV) is different from the present value of money inflows and the present value…
Q: Projects A. B, and C are mutually exclusive. Projects D and E are mutually exclusive and both are…
A: Answer Explanation PW factor = P/A, 10%,4- 3.170 PWB= -30+13(3.170) =11.21 PWC= -14+4.25(3.170)=…
Q: Two alternatives are being considered for a certain project. Alternative A has an initial cost of…
A: Modified BC ratio for Alternative A = 12334.22 / 10000 = 1.23 For Alternative B =…
Q: Solve using FW method and INCREMENTAL ANALYSIS. Show cash flow diagram and complete solution. The…
A: Given information 4 alternatives are mentioned below: MARR = 10% or 0.10
Q: Street lighting fixtures and their sodium vapor bulbs for a two-block area of a large city need to…
A: Capitalized cost (CC) = Present worth of all costs
Q: When comparing multiple alternatives, the DPBP can lead to wrong conclusions regarding the maximum…
A: The Discounted Payback Period (DPBP) is the method of measuring and analysing the time which a…
Q: The cost of upgrading a section of Grand Loop Road in Yellowstone National Park is $2.1 million.…
A:
Q: Find A. conventional B/C ratio B. modified B/C ratio C. Pl value A government-funded wind-based…
A: Benefit Rate (BCR) is an indicator of the relationship between the costs associated with the…
Q: Don't use excel or any tables, compute by a conventional method. Completely solve to fill in Blank…
A: All blanks answers are solved below,
Q: A state-funded water irrigation project in the province of Davao del Sur for the rice farmers will…
A: Initial cost = $50,000 1st year Benefit = $10,000 Increasing by 10% each year Maintenance cost =…
Q: The International Parcel Service has installed a new radio frequency identification system to help…
A: (Q) The International Parcel Service has installed a new radio frequency identification system to…
Q: Three mutually exclusive designs for a bypass are under consideration. The bypass has a 10-year…
A: To find the optimal range of MARR we need to find the IRR of all the three alternatives . IRR :…
Q: Required Information A government-funded wind-based electric power generation company in the…
A: Given: Interest rate=10% Life=25 years
Q: Solve the below given problem using the ERR method. Let ∈ = 10% per year. The Consolidated Oil…
A: Hi, thanks for the question. Since there are multiple sub-questions, we will answer for the first…
Q: A government-funded wind-based electric power generation company in the southern part of the country…
A: First, find the present worth of benefits: In year zero benefit = $45000 In year 5 benefit = $30000…
Q: The cost of upgrading a section of Grand Loop Road in Yellowstone National Park is $2.4 million.…
A: Given: Cost of upgrading=$2.4 million Other maintenance every 5 years=$460000 Interest rate=11%
Q: The International Parcel Service has installed a new radio frequency identification system to help…
A:
Q: A dam will have a first cost of $5,000,000, an annual maintenance cost of $25,000 and minor…
A: Capitalized value is the current value of an asset, usually real estate, based on a computation of…
Q: A public utility in a medium-size city is considering two cash rebate programs to achieve water…
A: The incremental benefit cost ratio of the mutual alternative. Table 1 shows the cash flow of two…
Q: (engineering economics) Determine the best alternative based on a 12% MARR using the following…
A: Year A B C 0 -100 -120 -40 1 0 0 -50 2 10 40 15 3 10 0 15 4 10 40 15 5 10 0 15 6 10 40…
Q: The Golden Gate bridge is maintained by 38 painters and 17 ironworkers (who replace corroding steel…
A: It is given that there are 38 painters to do the painting job and 17 iron workers to do the work of…
Q: A government-funded renewable energy electric power generation company has developed the following…
A: * SOLUTION :- (9) Given that , Benifit = 60000 in year 0, and 30000 in year 5. Government…
Q: Method used in comparing alternatives if the study period can be infinite in length or a common…
A: Disclaimer: Since you have asked multiple questions, we will answer the first one for you. If you…
Q: Four mutually exclusive projects are being considered for a new two-mile jogging track. The life of…
A: This question relates to capital budgeting, the business method of evaluating competitory projects…
Q: In order to provide drinking water as part of its 50-year plan, a west coast city is considering…
A:
Q: A new highway is to be constructed. Design A calls for a concrete pavement costing $85 per foot with…
A: A new highway is to be constructed, there are two designs Design A and Design B. Design A Cost in…
Q: If a country's currency's external value is tied or pegged to the currency values of the country's…
A: A foreign exchange market is one that allow people to make an exchange of currency of different…
Q: The Golden Gate bridge is maintained by 17 ironworkers, who replace corroding steel and rivets, and…
A: Given: The Golden Gate bridge is maintained by- 17 ironworkers and 38 painters If the painters…
Q: To remedy the traffic situation at a busy intersection in Quezon City, two plans are being…
A: Given: Plan A: Cost of Cloverleaf=P 92,00,000 Plan B: P 65,00,000 Interest rate=18%
Q: entified for a parking lot in downtown Blacksburg. Because the sites are plots of land, their…
A: "Answer:
Q: Four mutually exclusive projects are being considered for a new two-mile jogging track. The life of…
A: Answer in Step 2
Q: A new highway is to be constructed. Design A calls for a concrete pavement costing $80 per foot with…
A: The measure that depicts the uniform worth of receipts and expenditures being estimated during the…
Q: The International Parcel Service has installed a new radio frequency identification system to help…
A: * SOLUTION :- Given that, The capital investment = $65000 MARR = 18% The End of Year Savings are 1…
Q: For the four alternatives described in the table, which project or projects should be selected,…
A: The minimum acceptable rate of return, often being abbreviated as MARR is the minimum rate of return…
Q: All of the following are noneconomic attributes except: (a) Sustainability (b) Morale (c) Taxes (d )…
A: Correct option is (c).
Q: What is the capitalized cost of a public works project that cost $25 million now and will require $2…
A: Cost of project = $25 million Annual maintenance = $2 million Interest rate = 12%
Q: A bridge is to be constructed now as part of a new road. Engineers have determined that traffic…
A: * SOLUTION :-
Q: Complete the decision rule for the IRR method. If then the project is economically justified.
A: IRR stands for internal rate of returns. IRR is the expected growth that an investment produces…
Q: Given the data for two alternatives, choose the better alternative using the B/C ratio analysis.…
A: An obstacle rate, which is otherwise called the minimum acceptable rate of return, is the minimum…
Q: The town council of Cato Springs is considering two alternative investments to upgrade and expand…
A: Given, Two Alternatives : A and B to upgrade and expand the spring fed recreational area Time…
Q: The National Park Service is considering two plans for rejuvenating the forest and landscape of a…
A: The CW method will take into the usage of the Present value factors and the concept of the Time…
Q: Beaver, a city in the United States, is attempting to attract a professional soccer team. Beaver is…
A: Initial cost = $ 380million Maintenance cost = $730,000 Painting Cost = 76,000 at 9th year Period =…
Q: A piece of new equipment has been proposed by engineers to increase the productivity of a certain…
A: Given: Investment (I) = $10,000 Savings (A) = $5,000 Salvage Value (S) = $1500 Study period =five…
Q: Bawal gumamit ng excel( Don't use Excel) A small company has P20,000 in surplus capital that it…
A: Given information
Q: Problem 4: How long would it take to recover an investment of $250,000 in enhanced CNC controls that…
A: Present value depicts the current value of the future series of payments received from an annuity…
Q: A flood control project at Pleasant Valley dam is projected to cost $2,000,000 today, have annual…
A: Capitalized cost: It is an expense added to the cost basis of a fixed asset on the balance sheet of…
Q: Bawal gumamit ng excel( Don't use Excel) A small company has P20,000 in surplus capital that it…
A:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- :[A] { > Incremental analysis ([ B Alternative], [B wins ]): C A company considering 2 different machines at MARR at 12% Both life spans = 10 years Initial Cost Annual Operating lost Benefits per yin ar Salvage Value \table MM If you are and of frying investment to company decide More than 2 alternatives if the additional increment is worth while, compare Alternative: A Incremental analysis (Alternative) pairs then B C A MARR Company at Considering 2 different machines at 12% Both life spans = 10 years. M/C X м/с у Initial Cost 160000 285000 Annual Operating Cost Benefits per year Salvage Value 45 000 90000 45000 105000 20000 40000Any 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. AWould love some help on how to approach this - thanks! The cash flows for three different alternatives are given in table below. MARR =10%. Alt. A Alt. B Alt. C Initial cost $5,000 9,000 7,500 Annual benefits $1,457 2,518 2,133 RoR 14% 13% 12.4% Life in years 5 1. ΔRoR for the first increment (Alt. C-Alt. A) is ___________________. A.10.12% B. 9.38% C. 11.85% D. 11.00% 2. ΔRoR for the second increment is ___________________. A. 10.12% B. 9.38% C. 8.94% D. 9.87% 3. The best alternative for a MARR of 10% using the incremental rate of return analysis is ____________. A. Alt. C B. Alt. A C. Alt. B D. Do nothing
- A major equipment purchase is being considered by Metro Atlanta. The initial cost is determined to be $1,000,000. It is estimated that this new equipment will save $100,000 the first year and increase gradually by $50,000 every year for the next 6 years. MARR=10% a. Using Benefit- Cost analysis, what is the Benefit/Cost ratio for this equipment purchase? b. Based on the Benefit/Cost analysis should Metro Atlanta purchase the equipment?A project is being planned that has an initial investment at time 0, annual revenuesand expenses, and a salvage value at the end of the project lifespan (20 years). The financialvalues are summarized below:Initial investment amount at time 0 $150,000Estimated annual revenue $34,500 per yearEstimated annual expenses $8,700 per yearEstimated salvage value at end of lifespan $10,000Minimum attractive rate of return (MARR) 15%a. Calculate the capital recovery amount CR(i%).b. Using the annual worth (AW) method, determine whether purchasing the equipmentis economically justified.c. Repeat part (a) using the internal rate of return (IRR) method based on annual worth(AW).d. Using the present worth (PW) method, determine the break-even time period afterwhich purchase of the equipment generates a profit. (Find N when PW = 0) year period.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
- Each of the three mutually exclusive alternatives shown has a 5-year useful life. If the MARR is 10%, which alternative should be selected? Solve the problem by benefit-cost ratio analysis. A B Cost Uniform annual benefit $600.0 158.3 $500.0 138.7 с $200.0 58.3With interest at 10%, what is the benefit-cost ratio for this government project? Initial Cost Additional costs at the end of year 1 and year 2 Benefits at end of year 1 and year 2 Annual benefits at end of year 3 through year 2 Enter your answer as follow 12.34 $208,355 $23,720/year $0Ayear $91.825/yearThree 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
- 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 CCh 5 economics Nancy’s Notions pays a delivery firm to distribute its products in the metro area. Delivery costs are $31,500 per year. Nancy can buy a used truck for $8,000 that will be adequate for the next 3 years. Operating and maintenance costs are estimated to be $24,000 per year. At the end of 3 years, the used truck will have an estimated salvage value of $3,200. Nancy’s MARR is 25%/year. What is the present worth of this investment? $Brand A B 5:21 PM C D 2 years 3 years $13 4 years $17 5 years Which brand should the engineer select if the MARR is 9% a year? Cost m October 7, 2023 17:17 $7 2. An electrical engineer has to choose one brand of light bulbs among four available brands. The following information are available; lifetime $9 VPN G 4G+ LTE 22 8 0