Problem: Use (a) no-return payback, (b) discounted payback at 15%, and (c) PW analysis at 15%...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Problem: Use (a) no-return payback, (b) discounted payback at 15%, and (c) PW analysis at 15% to select a system. Comment on the results. Payback Analysis System 1 12,000 3,000 System 2 8,000 1,000 (year 1-5) 3,000 (year 6-14) 14 First cost, $ NCF, $ per year Maximum life, years 7 Problem: Use (a) no-return payback, (b) discounted payback at 15%, and (c) PW analysis at 15% to select a system. Comment on the results. Payback Analysis System 1 12,000 3,000 System 2 8,000 1,000 (year 1-5) 3,000 (year 6-14) 14 First cost, $ NCF, $ per year Maximum life, years 7
Expert Answer:
Answer rating: 100% (QA)
a No Return payback period is the period Number of years it takes the cash flows to cover the initial cash outlay Cash flows System 1 System 2 Year Ca... View the full answer
Related Book For
Posted Date:
Students also viewed these mechanical engineering questions
-
1. Critically comment on the results reported by CPCC under PRC GAAP, IFRS, and U.S. GAAP. 2. Identify the main areas of difference for CPCC between: a. PRC GAAP and IFRS. b. IFRS and U.S. GAAP. 3....
-
Use the PW method at 8% per year to select up to three projects from the four available ones if no more than $20,000 can be invested. Estimated lives and annual net cash flowsvary. Initial Net Cash...
-
Use the Second Order Runge-Kutta Method to solve for x and y from t = 0 to t=0.5s with step At = 0.1s: (x'= 13.1x 13.94x y' = 1.71x With x(0) = 0.03 and y(0) = 0.
-
A bank reconciliation takes time and must balance. An employee was struggling in balancing the bank reconciliation. Her supervisor told her to plug (make an unsupported entry for) the difference,...
-
Consult Paragraph A4 (in Appendix A) of PCAOB Auditing Standard No. 5. What is the auditors responsibility related to information disclosed by management at the time of an earnings release, if any?...
-
For each equation in Problems 7-18, find three ordered pairs that satisfy the equation, and then use this information to graph each line. \(y=-2 x+1 \)
-
On November 14, 2010, Amazing Sound, Inc., sold $3,100 of inventory (cost is $1,330) on account to one of its customers. The terms were 3/10, n/30, FOB desti nation. On November 16, Amazing Sound,...
-
Dominos Pizza L.L.C. operates pizza delivery and carryout restaurants. The annual report describes its business as follows: We offer a focused menu of high-quality, value-priced pizza with three...
-
Considering the information in the table below, indicate which amount borrowed you believe to be the optimal level of debt and explain completely why. Amount Borrowed Value of Equity Value of the...
-
A mechanical engineer at Anode Metals is considering five equivalent projects, some of which have different life expectations. Salvage value is nil for all alternatives. Assuming that the companys...
-
What is the distinction between cash premise and gathering premise bookkeeping? How does the matching guideline affect budget reports? Make sense of the idea of deterioration and its significance in...
-
Bell Company produces stainless steel drink tumblers, Its only product. These tumblers are stamped with company logos and used as promotional items. Following are simplified job cost sheets for two...
-
Financial statements for Askew Industries for 2024 are shown below (in thousands):
-
Riverwood Accounting Company has the following account in its cost records: Work in Process Jones Audit Direct labor 2 0 0 , 0 0 0 Services completed 4 2 2 , 5 3 0 Project overhead 2 7 0 , 0 0 0...
-
Williams Group started a new business on September 1, 2021. That same day, Williams Group also received $430,000 of cash from issuing common stock and borrowed $230,000 from a friend. On September 1,...
-
How do HCOs operate--how are they governed, what do boards do and what challenges do they face? What are the responsibilities of an HCO manager? What responsibilities do HCOs have in promoting...
-
A company is considering 2 alternative investment proposals. The first proposal calls for total replacement of the company's machines and equipment, while the second proposal involves repairing some...
-
In muscle tissue, the ratio of phosphorylase a to phosphorylase b determines the rate of conversion of glycogen to glucose 1phosphate. Classify how each event affects the rate of glycogen breakdown...
-
What are the criteria that must be met in order to recognize revenue from the sale of goods?
-
The parent company balance sheet for Babcock International Group PLC at March 31, 2010, is as follows: Balance Sheet As at 31 March 2009 Required: Transform Babcock's March 31, 2010, balance sheet to...
-
Quick Company acquired a piece of equipment in Year 1 at a cost of $100,000. The equipment has a 10-year estimated life, zero salvage value , and is depreciated on a straight-line basis....
-
The inverting op-amp circuit in Figure 9.9 has parameters \(R_{1}=20 \mathrm{k} \Omega\), \(R_{2}=200 \mathrm{k} \Omega\), and \(A_{o d}=5 \times 10^{4}\). The output voltage is \(v_{O}=-4.80...
-
The circuit in Figure P9.28 is similar to the inverting amplifier except the resistor \(R_{3}\) has been added. (a) Derive the expression for \(v_{O}\) in terms of \(v_{I}\) and the resistors. (b)...
-
(a) Consider the op-amp circuit in Figure P9.27. The open-loop gain of the op-amp is \(A_{o d}=2.5 \times 10^{3}\). (i) Determine \(v_{O}\) when \(v_{I}=-0.80 \mathrm{~V}\). (ii) What is the percent...
Study smarter with the SolutionInn App