An investment of $20,000 in new equipment will generate income of $7000 per year for 3 years, at which time themachine can be sold for an estimated $8000. If the company's MARR is 15% per year, the equation that can be used tosolve for i* is: 0 = -20,000 + 7000(P/A.I*.3) + 8000(P/F.i*.3)Select one:O TrueO FalseThe PW method allows analysis over the respective alternative lives.Select one:O TrueO FalseIn a DBOMF contract arrangement, the contractor is responsible for managing the cash flow to support projectimplementation; not the funding (capital funds) aspects. In DBOM contracts, this management responsibility is notplaced on the contractor.Select one:O TrueO False12:20 PMdalEAMC

Initial investment = 20,000 Annual Revenues = 7,000 Salvage value = 8,000 Life = 3 years MARR = 15%

Answered: An investment of $20,000 in new…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Army Research Laboratory scientists developed a diffusion-enhanced adhesion process which is expected to significantly improve the performance of multifunction hybrid composites. NASA engineers estimate that composites made using the new process will result in savings in space exploration projects. The cash flows for one project are estimated. Determine the rate of return per year. Year, t Cost ($1000) Savings ($1000) 0 −210 — 1 −150 — 2–5 — 100 + 60(t − 2)
I 1)find i* that satisfies this equation 0 = - 40,000 + 8000(P/A,i*,5) 8000(P/F,i*,8) +.
Engineering Economics 00013 Please provide a step by step solution using Rate of Return (ROR) Thankyou
Which alternative in the table below should be selected when the MRR = 6% per year? The life of each Kalternative is 10 years. Increment Considered A Investment cost A (Annual Revenues less. Costs) IRR on A Investment Cost A(A-DN) $800 $154 14.1% The IRR on A(C-B) is %. (Round to one decimal place.) A(B-A) $700 $114 10.0% A(C-B) $1,100 $170 ? A(D-C) $1,300 $130 2
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(b) person receives SR10,000 today and wants to invest it at 8% per year to be able to withdraw SR2000 every year forever. How long does he has to invest his money?
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