The capitalized cost (CC) of the given project whose Cash Flow diagram is given below is closest to:j= 12% per year136789 1011A= $2,000A= $5,000PO=$50,000Capitalized Cost= ?$-83,754O $-78,145O $-75,895$-85,500$-80,852

Given information Initial cost=50000 Annual cost for 4 years=$2000 Annual cost for next 7…

The capitalized cost (CC) of the given project whose Cash Flow diagram is given below is closest to: j= 12% per year 1 2 3 4 6 7 8 9 10 11 A= $2,000 A= $5,000 PO=$50,000 Capitalized Cost= ? O $-83,754 O $-78,145 O $-75,895 O $-85,500 $-80,852

The capitalized cost (CC) of the given project whose Cash Flow diagram is given below is closest to: j= 12% per year 1 2 3 4 6 7 8 9 10 11 A= $2,000 A= $5,000 PO=$50,000 Capitalized Cost= ? O $-83,754 O $-78,145 O $-75,895 O $-85,500 $-80,852

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: A project capitalized for P5,000,000 is expected to earn a uniform annual revenue of P1,000,000 in…

A: First Cost = P5,000,000 Annual revenue = P1,000,000 Annual O&M cost = P100,000 Annual…

Q: one of the assumptions of capitalized cost is that cash flows would not change during the infinite…

A: The above statement is true that the capitalised cost is that cash flow would not change during the…

Q: Lignin is a basic component of almost any plant that grows, so it is one of the most abundant…

A: * SOLUTION :- From the cash flow diagram we can see the cash flow in each subsequent year is…

Q: The engineering team at Manuel's Manufacturing, Inc., is planning to purchase an enterprise resource…

A: The present worth method is an equivalence method that reduces a project's cash flows to a single…

Q: Which of the computational methods do we use to find the incremental IRR of the given projects and…

A: We use Net Present Value (NPV) to compute IRR through the incremental analysis and interpolation…

Q: PW analysis for one project refers to the value of all cash flows converted to a single sum…

A: In the mentioned question we have been asked what actually PW is and do the given statement is true…

Q: Solve using FW method and INCREMENTAL ANALYSIS. Show cash flow diagram and complete solution. The…

A: Given information 4 alternatives are mentioned below: MARR = 10% or 0.10

Q: The IRR method is used to evaluate the following two mutually exclusive alternative investments. The…

A: Given the MARR of 8 %, and the incremental IRR between S and R is around 7.8 %, therefore we will…

Q: ANNUAL WORTH ANALYSIS Background and Information Manny, owner of an automobile battery…

A: Given:

Q: A reservoir will initially cost P200M, have P1M in annual maintenance costs, and P5M in minor…

A: Initial cost is the amount of revenue needed to build or renovate a significant institution.…

Q: Street lighting fixtures and their sodium vapor bulbs for a two-block area of a large city need to…

A: Capitalized cost (CC) = Present worth of all costs

Q: The cost of upgrading a section of Grand Loop Road in Yellowstone National Park is $2.1 million.…

Q: An asphalt pavement costing PHP 100,000 which would last for 5 years with negligible repairs. At the…

A: Given that; An asphalt pavement costing PHP 100,000 which would last for 5 years with negligible…

Q: Don't use excel or any tables, compute by a conventional method. Completely solve to fill in Blank…

A: All blanks answers are solved below,

Q: Determine the IROR and profitability index at 12% per year for an industrial smart-grid system that…

A: The value is established on an assessment of the asset's significance, or the value can be…

Q: The MARR is 7% per year, capital investment is $118,894, annual expense is $32,856, annual revenue…

A: Future value (FW) can be calculated by using the following formula.

Q: A cement grinding mill “A” with a capacity of 50 tons per hour utilizes forged steel grinding balls…

A: Given: Mill A: Capacity per hour=50 tons Cost per ton=P12000 Wear rate per ton cement milled=100…

Q: The analysis period is the least common multiple of lives for evaluating mutually exclusive…

A: To make an analysis of the cash flow over a period of time, there are different ways to evaluate…

Q: A dam will have a first cost of $5,000,000, an annual maintenance cost of $25,000 and minor…

A: Capitalized value is the current value of an asset, usually real estate, based on a computation of…

Q: The Golden Gate bridge is maintained by 38 painters and 17 ironworkers (who replace corroding steel…

A: It is given that there are 38 painters to do the painting job and 17 iron workers to do the work of…

Q: hated capital investment amounts and annual expenses are as follows: Design End-of-Year ER1 ER2…

A: the minimum acceptable rate of return, often abbreviated MARR, or hurdle rate is the minimum rate…

Q: The cash flows of two alternatives are given below. Determine the difference in the no-return…

A: We can calculate the payback period of both alternative firm , after that we can find the no return…

Q: Capital Investment $100,000 $152,000 $184,000 $75,000 Annual Revenues less expenses 15,200 31,900…

A: There is 4 mutually exclusive alternative with their costs and revenues are given. MARR is 15% and…

Q: The Ford Motor Company is considering three mutually exclusive electronic stability control systems…

A: Alternative A Capital Investment = 12,100 Net Revenue = 4,000 Salvage Value = 3250 n = 12% r = 4

Q: Selex Aerospace is considering five independent projects to improve net revenue as estimated below.…

A: a. There are 5 options available. The options can be compared based on the Net present value and net…

Q: A city is spending $20 million on a new sewage system. The expected life of the system is 180 years,…

A: Cost of new sewage system = $20 million Expected life = 180 years Operating and maintenance cost =…

Q: Currently, the beta for NW offices is 1.8 and IPD index for NW offices is 10%. Given the redemption…

A: Question 10 Currently, the beta for NW offices is 1.8 and IPD index for NW offices is 10%. The…

Q: To remedy the traffic situation at a busy intersection in Quezon City, two plans are being…

A: Given: Plan A: Cost of Cloverleaf=P 92,00,000 Plan B: P 65,00,000 Interest rate=18%

Q: A bridge will have a first cost of Php 10,000,000, an annual maintenance cost of Php50,000 and minor…

A: Capitalized cost - Additional cost is based on the value of assets declared in the company balance…

Q: The annual fixed costs for a plant are Php 5,000,000, and the variable costs are Php 7,000,000 at…

A: Given: The annual fixed cost is = Php5,000,000 The variable cost is = Php7,000,000 The utilization…

Q: Two proposals remain for consideration that have been put forward for a hydroelectric system.…

Q: Abel and Family Perfumes wants to add one or more of four new products to its current line of…

A: a. The comparison of the four different projects can be done by calculating the present worth of the…

Q: An investment proposal calls for $223,130 payment now and a second $259,450 7 years from now. The…

A: Investment: It refers to the allocation of the money at different areas in order to get more…

Q: The present worth of an alternative that provides infinite service is called its: (a) Net present…

A: Present value denotes the present worth of the money that is received in the future in a lump sum or…

Q: capitalized cost is defined as the time-dependent value of money stemming both from changes in the…

A: Capitalized cost is defined as an expense that is incurred when a fixed asset is purchased which…

Q: Projects A and B have first costs of $6,500 and $17,000, respectively. Project A has net annual…

A: The first cost of project A = $6500 The first cost of project B = $17000 Net annual benefits of…

Q: A dam will have a first cost of Php 50,000,000 an annual maintenance cost of Php 250,000 and minor…

A: A capitalized cost is an item that is added to the cost base of a fixed asset on a company's balance…

Q: The minimum attractive rate of return (MARR), is considered as the lowest interest rate that will…

A: Note:- Since we can only answer one question at a time and as the exact one is not specified, we'll…

Q: "The capitalized cost of $10,000 every 5 years forever, starting now at an interest rate of 6.5% per…

A: Given: The capitalized cost is = $10,000 Years = 5 The rate of interest is = 6.5% To Find: The…

Q: Determine the capitalized cost of a project that cost P324,000 with an anticipated salvage value of…

A: First, we convert all values into an equivalent A value. Now, we will divide the A value by the…

Q: The capital recovery cost is the equivalent uniform annual cost (EUAC) of the net capital…

A: Engineering economy refers to a subset of Economics concerned with the use and application of…

Q: A piece of new equipment has been proposed by engineers to increase the productivity of a certain…

A: Given: Investment (I) = $10,000 Savings (A) = $5,000 Salvage Value (S) = $1500 Study period =five…

Q: Bawal gumamit ng excel( Don't use Excel) A small company has P20,000 in surplus capital that it…

A: Given information

Q: Decision D6, which has three possible choices (X, Y, or Z), must be made in year 3 of a 6-year study…

Q: f the cash flow continuous to infinity than the Capitalized-Worth (CW) method is used. Select one…

A: The measure that depicts the movement of money being inside and outside of the economy is known as…

Q: Based on PW values, determine which of the following independent projects should be selected for…

A: Present worth (PW) can be calculated by using the following formula. Time period is indicated by…

Question

The capitalized cost (CC) of the given project whose Cash Flow diagram is given below is closest to:
j= 12% per year
1
3
6
7
8
9 10
11
A= $2,000
A= $5,000
PO=$50,000
Capitalized Cost= ?
$-83,754
O $-78,145
O $-75,895
$-85,500
$-80,852

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

A project your firm is considering for implementation has these estimated costs and revenues: an investment cost of $56417, a maintenance costs that start at $5,000 at end of year (FOY) one and increase by $1,000 for esch of the next four years, and then remain constant for the following five years; savings of $24851 per year (EOY 1-10); and finally a resale value of $31935 at EOY 10 If the project has a 10 year life and the firm's MARR is 10% per yeat, what is the present worth of the project?.
The capitalized cost (CC) of the given project whose Cash Flow diagram is given below is closest to: = 10% per year 5 6 7 8 9 10 11 2 3 A= $2,000 PO=S30,000 C-55000 (Recurring every 5 y ears) C=55000 (Recurring every 5 years) Captalized Cost= ?
Determine the FW of the following engineering project when the MARR is 15% per year. Is the project acceptable? Proposal A Investment cost Expected life Market (salvage) value Annual receipts $11,000 5 years -$1,000 S7,000 $4,000 Annual expenses "A negative market value means that there is a net cost to dispose of an asset Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year The FW of the follawing engineering froject is $ (Round to the nearest dollar.)
Which alternative in the table below should be selected when the MARR =7% per year? The life of each alternative is 10 years. A(A - DN) A(B - A) $700 A(C - B) $1,100 Increment Considered A(D - C) $1.300 A Investment cost A (Annual Revenues less Costs) $800 $140 $108 $161 $130 IRR on A Investment Cost 11.7% 8.8% ? The IRR on A(C - B) is || %. (Round to one decimal place.)
Please no written by hand solution Two projects are shown below. Interest rate is 10% per year with yearly compounding. Project A Project B Project Life 10 years 10 years Benefits $500 at year = 0 and $100 per year (at year = 1,2,3,…,10) $15 per year starting year 2 (at year = 2,3,4,…,10) Disbenefits $40 per year (at year = 1,2,3,…,10) $1 per year starting year 2 (at year = 2,3,…,10) Costs $600 at year = 0, $100 at year = 1 $50 at year = 0 (1) Find the conventional B/C ratio for Project A. (2) Find the conventional B/C ratio for Project B. (3) Based on B/C analysis (using conventional B/C ratio), which between A and B is more attractive?
A tax exempt municipality is considering the construction of a new municipal waste water treatment facility. Two different sites have been selected as technically, politically, socially, and financially feasible. The city council uses 6% interest rate for all analyses for public projects. The expected cash flow for the two alternatives are as follow: Year Alt. A Alt. B - $15,361,975 - $26,030,799 $2,184,416/year $2,830,910/year 0 1- 75 What is the incremental benefit/cost ratio? Enter your answer as follow: 12.34
Q3) For a 12% per year MARR, consider the following two investment projects: Project A Project B Year Net Cash Flow, BD Net Cash Flow, BD -2000 -3000 1 1000 1100 2 700 1900 3 1000 1100 4 700 Determine the following: a) Based on Rate of Return analysis (IRR), which project would you select? Why? b) Based on Simple Payback analysis (np), which project would you select? Why? c) Which analysis method is better to use in engineering analysis? Why?
A four-year project has an initial cost of $20 000, net annual cash inflows of $10 000, and a salvage value of $5 000. Which of the following gives the project's internal rate of return (i*)? -20 000(F/P, i*, 4) + 10 000 + 5 000 = 0 -20 000(A/P, i*, 4) + 10 000 + 5 000(A/F, i*, 4) = 0 -20 000(A/F, i*, 4) + 10 000 + 5 000(A/P, i*, 4) = 0 O -20 000(P/F, i*, 4) + 10 000 + 5 000(A/F, i*, 4) = 0
QUESTION 10 Save Answer Determine the capitalized cost of an alternative that has a first cost of $55,000 an annual maintenance cost of $12,000 and a cost every five years of $20,000.Use an interest rate of 11% per year. 109,091 193,286 217,650 225,000 Save Answer An alternative for producing a pesticide will have a first cost of $400,000 and annual costs of $40,000. Income is expected to be $120,000 per year. What is the payback period at 0% per year interest? 3.5 years 4 years 4.5 years 5 years
Most likely estimates for a project are as follows. MARR Useful life Initial investment Receipts - Expenses (R-E) 10% per year 9 years $5,000 $1,200/year Click the icon to view the relationship between the PW and the percent change in parameter. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. (b) To which variable is the PW most sensitive to? OA. Receipts - Expenses OB. Usefule life OC. Initial Investment (a) Determine whether the statement "An initial investment of $6,000 keeps the investment economical." is true or false. O False O True
A grateful donor wishes to start an endowment at her alma mater that will provide scholarship money of $40,000 per year beginning now (time 0) and continue indefinitely. If the funds earn 10% per year, the amount she must donate now is closest to:a. $340,000b. $400,000c. $440,000d. $493,800
E4 An engineer at Delphi Systems is considering the projects below, all of which can be considered to last indefi nitely. The company’s MARR is 13% per year. (a) Determine which projects should be selected on the basis of IROR if the budget limitation is $39,000. (b) What is the overall rate of return if the money not invested in projects is assumed to earn a rate of return equal to the MARR?