ng two solar systems for her house water heating requirements. Her MARR is 20% per year. Alternative P Alternative Q First cost, $ 18,000 35,000 Annual operating cost, S/year 4,000 3,600 Salvage value, S 1,000 2,700 Life, years 3. 6. You need to assist her by finding the incremental cash flow over an appropriate analysis period. The equation that should be use to find the rate of return for the incremental cash flow is: O0--17,000 + 400(PIAL6) + 17,000(P/F13) + 1700(P/F,6) O0-17,000 + 400(P/A,6) - 17,000(P/FL3) + 1700(P/F,6) O-17,000+ 400(P/F6)+ 17,000(P/AL3) + 1700(P/F1,6) 6-17,000 + 400(P/AL6) - 17,000(P/AL.3) - 1700(F/AL6)

ng two solar systems for her house water heating requirements. Her MARR is 20% per year. Alternative P Alternative Q First cost, $ 18,000 35,000 Annual operating cost, S/year 4,000 3,600 Salvage value, S 1,000 2,700 Life, years 3. 6. You need to assist her by finding the incremental cash flow over an appropriate analysis period. The equation that should be use to find the rate of return for the incremental cash flow is: O0--17,000 + 400(PIAL6) + 17,000(P/F13) + 1700(P/F,6) O0-17,000 + 400(P/A,6) - 17,000(P/FL3) + 1700(P/F,6) O-17,000+ 400(P/F6)+ 17,000(P/AL3) + 1700(P/F1,6) 6-17,000 + 400(P/AL6) - 17,000(P/AL.3) - 1700(F/AL6)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Street lighting fixtures and their sodium vapor bulbs for a two-block area of a large city need to be installed at a first cost (investment cost) of $130,000. Annual maintenance expenses are expected to be$6,500for the first8years and$8,500 each year thereafter upto 25years. With an interest rate of 9% per year, what is the present worth cost of this project? Choose the closest answer below. A) $202,422 B $238,597 C) $249,468 D) $277,339
i will 10 upvotes urgent How much money would be accumulated 18 years from now from deposits of $15,000 per year for 5 consecutive years, starting 6 years from now, if the interest rate is 8% per year. The amount that would be accumulated is determined to be $_____
RKI Instruments manufactures a ventilation controller designed for monitoring and controlling carbon monoxide in parking garages, boiler rooms, tunnels, etc. The net cash flow associated with one plant for the first 3 years of operation is shown. (a) What do the two rules about sign changes indicate concerning i* values? (b) Find all rate of return values between 0 and 100%. Year Net Cash Flow, $ 0 −30,000 1 20,000 2 15,000 3 −2000
YOUR FATHER PLANS TO INVEST P500,000.00 IN AN AUTO WASHING MACHINE WITH THE FF DATA: WASHING CAPACITY- 12 CARS/HR AT 8HRS OPERATION/DAY FOR 6DAYS A WEEK AND 50 WEEKS/YEAR CAR WASH CHARGE-P25/CAR MANUAL LABOR COST (2 WORKERS)-P25/HR PER WORKER PLUS A PAID VACATION BENEFITS OF 2 WEEKS PER YEAR MAINTENANCE COST-P8500.00/MONTH DESIRED RATE OF RETURN ON THE CAPITAL-20% PRESENTLY YOUR FATHER IS EARNING P25,000.00/MONTH AS A REGULAR EMPLOYEE AND WANTS TO CONCENTRATE ON THIS BUSINESS AND WANT TO RECOVER HIS INVESTMENT IN 5 YEARS. USING ROR AND AW METHOD OF ECONOMY STUDIES, SHOULD YOUR FATHER PROCEED WITH THE INVESTMENT?
YOUR FATHER PLANS TO INVEST P500,000.00 IN AN AUTO WASHING MACHINE WITH THE FF DATA: (20 PTS.) WASHING CAPACITY- 12 CARS/HR AT 8HRS OPERATION/DAY FOR 6DAYS A WEEK AND 50 WEEKS/YEAR CAR WASH CHARGE-P25/CAR MANUAL LABOR COST ( 2 WORKERS)-P25/HR PER WORKER PLUS A PAID VACATION BENEFITS OF 2 WEEKS PER YEAR MAINTENANCE COST-P8500.00/MONTH DESIRED RATE OF RETURN ON THE CAPITAL-20% PRESENTLY YOUR FATHER IS EARNING P25,000.00/MONTH AS A REGULAR EMPLOYEE AND WANTS TO CONCENTRATE ON THIS BUSINESS AND WANT TO RECOVER HIS INVESTMENT IN 5 YEARS. USING ROR AND AW METHOD OF ECONOMY STUDIES, SHOULD YOUR FATHER PROCEED WITH THE INVESTMENT?
Based on the following data: Years 1 3 4 CFs ($) 100 100 100 100 150 100 AW over the period (1 to 5) years if the interest rate is 10% per year is: $124 $112 $149 O $135
Determine the rate of return per year for the cash flows shown below Year 0 1 2 3 $ ,Cash Flow 125,000 7,500~ -84,000 78,000
Street lighting fixtures and their sodium vapor bulbs for a two-block area of a large city need to be installed at a first cost (investment cost) of $120,000. Annual maintenance expenses are expected to be $6,650 for the first 10 years and $10,000 each year thereafter upto 25 years. With an interest rate of 10% per year, what is the present worth cost of this project? Choose the closest answer below. OA. The present worth cost of the project is $251,632. OB. The present worth cost of the project is $271,133. OC. The present worth cost of the project is $236,922. OD. The present worth cost of the project is $190,186.
A new permanent endowment at the University of Alabama will award scholarships to engineering students twice per year (end of June and end ofDecember). The first awards are to be made beginning 5-1⁄2 years after the $20 million lump sum donation is made. If the interest from the endowment is intended to fund 100 students each semester in the amount of $5000 twice per year, what semiannual rate of return must the endowment fund earn?
A granite company is planning to buy a fully automatedgranite cutting machine. If it is purchased under down payment, the cost of themachine is $ 16,00,000. If it is purchased under installment basis, thecompany has to pay 25% of the cost at the time of purchase and the remainingamount in 10 annual equal installments of $ 2,00,000 each. Suggest the bestalternative for the company using the present worth basis at i = 18%,compounded annually.
Calculate the total capital cost and the annual worth for the following cash flow diagram (the time is infinity) 2 4 8 10 12 14 20 26 Year Infinity $2000 $3000 S50,000 $1500 $1500 $1500 Only one рayment Cost repeated every 7 years i = 5% per year $90,000
Question Calculate the perpetual equivalent annual cost (years 1 to ∞o) of $950,000 now and $825,000, 5 years from now at an interest rate of 8% per year. The perpetual equivalent annual cost is determined to be $.