Question
In: Economics
Consider three alternatives, each with a 10-year useful life. If the MARR is 10%, which alternative...
Consider three alternatives, each with a 10-year useful life. If the MARR is 10%, which alternative should be selected? Solve the problem by benefit-cost analysis.
| Alt | Alt B | Alt C | |
|---|---|---|---|
| Cost | $800 | $300 | $150 |
| Uniform Annual Benefit | $142 | $60 | $33.50 |
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
Consider 3 mutually exclusive alternatives, each with a 10-year useful life. If the Minimum Attractive Rate...
Consider 3 mutually exclusive alternatives, each with a 10-year
useful life. If the Minimum Attractive Rate of Return (MARR) is
14.5%, which alternative should be selected? Solve the problem
using benefit-cost ratio analysis.
Alternative
Choice #1
Choice #2
Choice #3
Cost
810
305
145
Uniform Annual Benefit
131
62
36
Each alternative has a 10-year useful life and no salvage value. Construct a choice table for...
Each alternative has a 10-year
useful life and no salvage value. Construct a choice table for
interest rates from 0% to 30% in increments of 5%, if doing nothing
is allowed.
A
B
C
Initial cost
$1,500
$1,000
$2,035
Annual benefit for first 5 years
$250
$250
$650
Annual benefit for subsequent 5 years
$450
$250
$145
This is
Engineering Economics
Consider three mutually exclusive alternatives, each with a 20 year life span and no salvage value....
Consider three mutually exclusive alternatives, each with a 20
year life span and no salvage value. The minimum attractive rate of
return is 6%.
A
B
C
Initial
Cost
$4000
$8000
$10,000
Uniform Annual Benefit
($)
410
639
700
Find the preferred alternative based on an analysis of your
choice. Also estimate the sensitivity of this alternative
to changes in the cost and benefit structure
A firm is considering three mutually exclusive alternatives as
part of a production improvement program....
Consider the mutually exclusive alternatives given in the table below. MARR is 5 % per year....
Consider the mutually exclusive alternatives given in the table
below. MARR is 5 % per year. Assuming repeatability, what is the
equivalent annual worth of the most profitable alternative? (Do not
enter the dollar sign $ with your answer.)
_____________________________________________________________
X Y Z
_____________________________________________________________
Capital
investment $50,000
$25,000
$40,000
Annual
savings $15,000
$8,000
$12,000
Useful
life
(years) 10 15
20
_____________________________________________________________________________
For the below ME alternatives , which machine should be selected based on the PW analysis. MARR=10%.
For the below ME alternatives , which machine should be selected based on the PW analysis. MARR=10%.Machine AMachine BMachine CFirst cost, $ 15000 30000 10,423Annual cost, $/year 12,340 6,000 4,000Salvage value, $ 4,000 5,000 1,000Life, years 362Answer the below questions :A- PW for machine C =B- Based on the PW value you got in the previous questions, which machine we should select? type you explanation below
Compare the following three alternatives by the IRR method, given MARR of 8%/year. First find if...
Compare the following three alternatives by the IRR method,
given MARR of 8%/year. First find if they are feasible and then
compare them with the incremental rate of return method (DROR).
Alt.
Construction cost $
Benefits
$/yr
Salvage $
Service Life (yrs)
A
510,000
145,000
10,000
5
B
775,000
155,000
15,000
9
C
1,075,000
165,000
20,000
11
Given the following 4 alternatives, the best alternative using the incremental ROR analysis at MARR= 13%...
Given the following 4 alternatives, the best alternative using
the incremental ROR analysis at MARR= 13% is:
Dealer
1
2
3
4
First Cost, $
-5,000
-6,500
-10,000
-15,000
Annual Average Cost per repair, $
-3500
-3200
-3000
-2000
Close-out value, $
+500
+900
+700
+1000
Life, years
8
8
8
8
Group of answer choices
Alt. 1
Alt. 2
Alt. 3
Alt. 4
A contractor was doing the 10-year planning for a construction business, which uses a MARR of...
A contractor was doing the 10-year planning for a construction
business, which uses a MARR of 15% per year. The contractor
anticipates income of $150,000 per year for years 1-5, and income
of $200,000 per year for years 6-10.
Draw the cash flow diagram.
What is the future value (in year 10) of the income? (show
steps and calculations)
A contractor was doing the 10-year planning for a construction business, which uses a MARR of...
A contractor was doing the 10-year planning for a construction
business, which uses a MARR of 15% per year. The contractor
anticipates income of $150,000 per year for years 1-5, and income
of $200,000 per year for years 6-10.
Draw the cash flow diagram.
What is the future value (in year 10) of the income?
Three mutually exclusive design alternatives are beimg considered. The estimated cah flows for each alternative are...
Three mutually exclusive design alternatives are beimg
considered. The estimated cah flows for each alternative are given
below. The MARR is 20% per year. At the conclusion of the useful
life, the investment will be sold. A decision-maker can select one
of these alternatives or decide to select none of them. Make a
recommendation using the PW method. Which alternative would you
select?
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