What is the 5-year Benefit-Cost-Ratio (BCR) at 5% interest rate for an equipment project with the immediate installation cost of -$2500 (in year 0) and a maintenance cost of -$1500 in year 3, and annual benefit of $1000 from the first year onward (n=1 to 5)? Select one: O A. 1.20 OB. 1.16 OC. 1.14. OD. 1.15 27
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- Approximately, what is the value of (P) if A=600, n322 years, and i= 21% per year? Select one: O a. 3377 O b. 2814 O c. 2336 O d. 3771If present cost of SR 30,000, annual costs of SR 3,500, periodic costs every fve years of 7,500, the interest rate of 7% per year, find the C. -98631.1 „A O -99631.1B -97631.1 CO -96631.1D OWhats the paybck period & discounted payback period for a project with costof 2OO,OOO that generates an annualcash infloww of 3O,OOO for the first 2years, 4O,OOO per year for years 3to5, & 5O,OOO per year for years 6through9?
- SUBJECT: ENGINEERING ECONOMICS (a) Identify the Given and the Unknown or what is being asked in the problem (b)Provide the formula to be used (c)Show the complete solution. The final answer is already provided. At 5% annual interest, what is the difference in the present and future value of P100 paid at the end of each year for 10 years and P100 paid at the beginning of each year? Answer: P value difference = P88.61, F value difference = P62.89What is the equivalent annual annuity (EAA) of the project S? WACC 9.00% Year 100224 CFS -$1,000 650 650 CFL -$1,000 375 375 375 375The maintenance cost in year 1 is $23000, increasing by 7% each year. What is the present worth of this over 9 year period at an interest rate of 13% per year? Select one: O a. 18918.92 Ob. 148735.18 O c.153964.21 O d. 91246.65 O e. 20353.98
- What is the present value (PV) of $40, 000 received ten years from now; assuming the interest rate is 5% per yeal? A. $20,873 B. $42,974 C. S24, 557 D. $26,000If $2500 were invested for 5 years at 10% nominal interest compounded daily, what would be the future amount? Select one: a. $4121.73 b. $6521.73 c. $3121.73 d. $5121.73calculate the future sum (F) IF G = $ 1500 , n =5 year and i= 8% (a) 16249 (b) 16652 (c) 16526
- Using a 10% interest rate, determine which alternative, if any, should be selected, based on net present worth. Alternative A B First Cost $5,300 $10,700 Uniform Annual Benefit 1,800 2,100 Useful life 4 years 8 yearsComplete the following using present value. Amount $6,600, Time 10 years, Rate 2%, Compounded semiannually. What is the period used? What is the rate used? What PV factor used? What is the desired end of period amount?A company is expected to result 700$ savings annually for the 7 years, if the rate of interest is 10% what will be the equivalent uniform annual benefit? Select one: O a. 750$ O b. 700$ O c. 780$