Q: Air-Conditioning System 1 Air-Conditioning System 2 -12.000 -8,000 er year -750 -125 alue, $ -100…
A: The annual worth is the net of the multitude of advantages and costs brought about more than a…
Q: You have an investment account that started with $4,000 10 years ago and which now has growh a. What…
A: a) Given that, Investment value at year 0 = $4000 value of investment at year10 = $110000 Annual…
Q: An investment proposal calls for a $417,805.55 payment now and a second $282,934.40 payment 9 years…
A: First Payment = 417,805.55 payment 9 years from now = 282,934.40 annual interest rate is 6%.
Q: As a shareholder of a Construction firm, it has been decided by the Board to purchase a new 18-…
A: Given the present purchase cost of truck = $60000Time = 12G = $400Annual expense = $18000Salvage…
Q: Patti's project has an IRR of 15 percent, first cost P, and annual savings A. She observed that the…
A: Given, First cost : P Annual Savings : A Salvage Value : Third of the First Cost =P/3 IRR : i = 15%…
Q: (LG 4.3) Savings of $5600 per year can be achieved through either a $14 000 machine (A) with a…
A: please find the detailed answer below.
Q: Iculate the total capital cost and the annual worth for the following cas w diagram (the time is…
A: According to the question, t = 5% One time payment = $50,000 , which mean that it is total capital…
Q: 4,000 For I-15%, Solve for the Equivalent Uniform Annual Cost (EUAC) in periods 1 thru 5. Provide…
A:
Q: 3. A machine with an initial price of $30,000 has an annual operating cost of $15,000 and a life of…
A: Using PW factor, PW of Machine 1 = 30000 - 15000(A/P, i, n) =…
Q: Measure of worth PW, ROR, B/C, ete. criterion
A: There are various ways in which alternatives could be evaluated on different criteria in order to…
Q: 4. Consider four mutually exclusive alternatives: A B D Initial Cost, $ $770.00 1406.30 2563.30…
A: The incremental internal rate of return calculates a financial return to an investor or business…
Q: what is the present worth (PW) for the following cash flow?. Use (i-6 Annual payment= $100 per year…
A: Given the number of years = 9 years Interest rate = 6% Annual payment = $100 First year return =…
Q: Perform a present worth analysis of equal service alternatives with the costs shown below, if the…
A: Here we calculate the present worth by using the MRR and conclude the final decision , so…
Q: Investment A costs dollar 10,000 today and payback 11,500 dollar two years from now. Investment b…
A: The cost of investment "A" = $10000 Payback amount after 2 years = $11500 The cost of investment…
Q: 5. For the cash flows shown below, use an annual worth comparison to determine which alternative is…
A: Given: The Rate of Interest = 12% To Find: The best alternative using annual worth comparison
Q: Consider the following two alternatives: Alternative Year B -$200.0 -$131.0 1 +77.6 +48.9 2 +77.6…
A: We are going to find the present worth for each project to answer this question.
Q: Calculate the present value PV (in dollars) of an investment that will be worth $1,000 at the stated…
A: Future Value = Present Value (1 + r / 100) ^ n FV = $1000 r = 4.7% / 4 = 1.175% (As it is compounded…
Q: Which is the answer? show steps with your formulas. Thank you
A: Present value is the current value of future sum of money in lump sum or installments with a stated…
Q: 01. Two alternatives have the following cash flows: alternative End of Year A B – $2000 + $800 +…
A: Present Values: Net present value of Alternative A = 800(P/A, 12%, 4) - 2000= 800…
Q: A new alloy can be produced by Process A, which costs $200,000 to implement. The operating cost will…
A: Interest rate=8% per year compounded quarterly means 2% per quarter Process A…
Q: Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life.…
A: Given Information in Question MARR (I) = 5%,Project Life (N) = 10 yearsInitial Cost = 28,000Annual…
Q: .ROR an additional investment 2. Annual cost method 3. The EUAC method 1.The present worth cost…
A: 1. A pace of return (RoR) is the net increase or loss of a venture throughout a predefined…
Q: Her cash flow at time period 0 i
A: Cash flow is a measure which calculates the net amount of cash which is being transferred into and…
Q: Consider the following cash flow profile and assume MARR is 10%/year. 1 2 3 4 EOY NCF -$100 $800…
A: IRR (internal rate of return ) is defined as the rate of return where the net present value of…
Q: 5.24 For the cash flows below, use an annual worth comparison to determine which alternative is best…
A: Calculating the Annual worth of each project. AW of Project X =…
Q: 04. For the cash flows shown, find the future worth in year 7 at i = 3% per year? Please show your…
A: For, Year 2=700Year 3=1.03 x 650=669.5Year 4=(1.03)2 x 600=636.54Year 5=(1.03)3 x 550=600.99Year…
Q: A firm is considering which of twodevices to install to reduce costs. Both devices have useful lives…
A: Annual Worth is described as the identical standardized yearly benefit over a project’s life cycle…
Q: What is the Future worth for the following cash flow diagram? If the MARR is 10%, is this a good…
A: here we calculate the future worth of the given cashflow and select the correct option so the…
Q: Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life.…
A: First cost =$28 000 $5000 per year over its 10-year life. salvage value of $3000 at the end of 10…
Q: 4. X generator has a first cost of $20,000, AOC of $15,000, and S of $5000 after 4 years. Y…
A: Disclaimer- “Since you have asked multiple question, we will solve the first question for you as per…
Q: An investment proposal calls for $321,164.4 payment now and a second $298,165.23 7 years from now.…
A: Investment Proposal = 321,164.4 2nd Payment = 298,165.23 Interest rate
Q: A pump is needed for 10 years at a remote location. The pump can be driven by an electric motor if a…
A: As the life of the Gasoline is only 5 years it has to be repeated once. The PW of Gasoline =…
Q: Two hazardous environment facilities are being evaluated, with the projected life of each facility…
A: GIVEN First Cost $300,000 $615,000 Maintenace & Operating cost…
Q: A company must invest in one of two alternatives. Alternative A Alternative B Initial Cost $712,623…
A:
Q: A plant is interested in acquiring a machine to produce a new product. Three altematives, A. B. and…
A: A B C Investment Cost 20800 34000 16000 Annual cash flows 10000 9200 10900 Salvage value…
Q: 9. Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year…
A: Project cost = $28000 Per year returns = $5000 Time = 10 years Interest rate = 15% Salvage value =…
Q: , if PW= $ 1581.48, compounded annually. Explain the results. End of Year 2| 3 4 Cash Flow, $1000…
A:
Q: Present Worth Method. Show your complete solution and box your answers. A company that manufactures…
A: Present worth is the current value of money that we are expecting in the future.
Q: A salesman earns 1000P on the 1st month, 1500P on the 2nd month, 2000P on the 3rd month and so on.…
A: Monthly Payment = 1000 and increasing by 500 every month n = 10 r = 12%
Q: he first cost of a certain equipment is P350.000 and a salvage value of P48,000 at the end of its…
A: A capitalized cost is a cost that is incurred from the purchase of a fixed asset that is expected to…
Q: Choose the most economical alternative in disposing non-hazardous chemical sludge using (a) PW…
A: i=12%
Q: Compare the machines below based on their annual worth at a 14% interest rate yearly. (Include cash…
A: Formula used: Annual Worth = PW/PVAF PVAF = [(1−(1+i)^−n)/i]
Q: 4. X generator has a first cost of $20,000, AOC of $15,000, and S of $5000 after 4 years. Y…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If you…
Q: Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life.…
A: If the Annual Worth is positive, then it is profitable to undertake the project, else not
Q: Q2: A warehouse can be built with an initial cost of $60000, which may last for 20 years with annual…
A: A Rate of Return (ROR) is the gain or loss of an investment over a certain period of time Here we…
Q: You deposit $5000 into an account that will grow to $14,930 in 6 years. Your rate of return on this…
A: Answer: Given, Deposit value = $5000 Final value = $14,930 Years = 6 Formula to be used: Final…
Calculate future worth with MARR 20%
Step by step
Solved in 2 steps with 2 images
- MARR 20% EOY Cash Flow 0 $(70,000.00) 1 $ 20,000.00 2 $ 19,000.00 3 $ 18,000.00 4 $ 17,000.00 5 $ 16,000.00 6 $ 15,000.00 7 $ 14,000.00 8 $ 13,000.00 9 $ 12,000.00 10 $ 11,000.00 11 $ 10,000.00 12 $ 9,000.00 13 $ 8,000.00 14 $ 7,000.00 15 $ 6,000.00 16 $ 5,000.00 17 $ 4,000.00 18 $ 3,000.00 19 $ 2,000.00 20 $ 1,000.00 Plot a graph of FW versus MARR, where MARR varies from 0 percent to 50 percent by 1 percent increments.FW should be on the y-axis and MARR on the x-axis. How do you find FW? Please show all steps and formulas used in excel format. Thank you!MARR 20% EOY Cash Flow 0 $(70,000.00) 1 $ 20,000.00 2 $ 19,000.00 3 $ 18,000.00 4 $ 17,000.00 5 $ 16,000.00 6 $ 15,000.00 7 $ 14,000.00 8 $ 13,000.00 9 $ 12,000.00 10 $ 11,000.00 11 $ 10,000.00 12 $ 9,000.00 13 $ 8,000.00 14 $ 7,000.00 15 $ 6,000.00 16 $ 5,000.00 17 $ 4,000.00 18 $ 3,000.00 19 $ 2,000.00 20 $ 1,000.00 Plot a graph of FW versus MARR, where MARR varies from 0 percent to 50 percent by 1 percent increments.FW should be on the y-axis and MARR on the x-axis.Q2.The following incompatible plans have been suggested to an investor for investment. The life of these options is 4 years and their scrap value is zero. If the investor's minimum attractive annual rate of return is 14% percent, use the additional investment analysis to determine the option that maximizes the present value of the investor's profit. Initial investment cost 20000 10000 Plan Annual net income A 6530 5312 30000 7829
- Jose wants to invest in a venture that will have an annual return of P120M and annual operating cost of P60M for the next 5 years. If money is worth 8% with a computed BCR = 1.9964, how much is the initial investment? P75M O P100M O P150M O P120M O PSOM O P200M none of the choices O P130MRetainer 0 1 Expenses 2 Revenue N Years How much can you afford to spend on the first year expenses on a project with the above cash flow?, given; Your MARR is 10.00%, the client has given you a retainer of $5,700, annual revenues are expected to be $2,750, the external rate of return required for this project is 19.5% and the entire project will last 8 years. (Round your answer to the nearest penny)Edinburgh Newcastle £000 £000Franchise fee (year 0) 8,700 7,950New buses (year 0) 4,120 3,890Scrap value (year 5) 110 95Forecast net cash inflowsYear 1 3,780 3,500Year 2 4,150 3,850Year 3 4,550 4,200Year 4 5,120 5,150Year 5 4,900 4,950 calculate the payback period for both the…
- A company is considering two machines. Machine X has a first cost of $30,000, AOC of $18.000, and 5 of $7000 after 4 years. Mact 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 rate Select one: O a AWX=-30,000(A/P12 % .4) -18,000 7,000(A/F.12%.4); AWY- 50,000(A/P12 %6) -16.000 9.000(A/F.12%,6) O b. AWX=-30,000(A/P12%24) -18,000 7,000(A/F.12%24) AWY- -50,000(A/P12%24)-16.000 9.000(A/F12%24) Oc AWX=-30.000(A/P12 % 6 ) -18,000 7,000(A/F.12%6) AWY 50.000(A/P12% 6)-16.000 9,000(A/F.12%,6) Od AWX-30,000(A/P12% 12)-18.000 7.000(A/F.12% 121 AWY- 50.000(A/P12% 12)-16,000 9,000(A/F.12%,12) .An annual deposit of P1270 as placed on the fund at the end of each year for 6 vears. If the fund has a tate of 5% compounded annualy how much is the worth of this fund at the end of 9 years? Select one. Oa.P11000 Oo.P12000, OaP10,000Part C Cecelia receives two credit card offers in the mail. Each has a 0% introductory APR. After the introductory period, the first card has an APR of 19.99% and the second card has an APR of 24.99%. If each card has a late fee of $35 and an annual membership fee of $25, which card should she choose and why? 15px Space used (includes formatting): 0 / 15000 Part D Justin has a credit card with an APR of 19.9% that has gone over the limit by $75. If Justin makes a payment of $75, is he safe from going over the limit again if he does not make any additional charges on his card? Explain.
- Given a cash flow table as below, determine the NPW if MARR (interest rate) is 10%. Year 2 4 Cash Flow, $ -10K -1K 4K 8K 12K O $6,603 O $8,040 O $7,965 O $5,399You need to know if the building of a new warehouse is justified under the following conditions. The proposal is for a warehouse costing $100,000. The warehouse has an expected useful life of 35 years and a net salvage value of $25,000. Annual receipts of $17,000 and maintenance and administrative cost of $6,000/yr.. What is the annual worth at 6% compounded annually? O a. $5673 O b. $2367 O c. $11,250 O d. $4327An electric cooperative is considering the use of a conicrete electric pole in the expansion of its power distribution lines A concrete pole costs 18.0o0 each and will last 20 years The company is presently using creosoted wooden poles which cost 12.000 per pole and will last 10 years. If money is worth 12 percent, which pole shoulcd be used? Assurne annual taxes amount to1 percerit of first cost and zero salvage value in both cases a) Use rate of return method b) if the maximum retum on investment is 20% what is the justifiable arnount that can be paid for concrete electric pole?