Question: 8. Given that i = 10% and the data below: Alternative Project A Project B First Cost($) -50,000 -80,000 Annual Cost ($/yr) -20,000 -10,000 Salvage

8. Given that i = 10% and the data below:

Alternative

Project A

Project B

First Cost($)

-50,000

-80,000

Annual Cost ($/yr)

-20,000

-10,000

Salvage value ($)

10,000

25,000

Life, years

3

6

The cost recovery for project A and B are respectively;

a. CR=$25,128 for project A and CR=$37,084 for project B

b. CR=$15,128 for project A and CR=$17,084 for project B

c. CR=$17,084 for project A and CR=$15,129 for project B

d. CR=$43,126 for project A and CR=$31,600 for project B

Questions 9-11. The four Cost alternatives described below are being evaluated.

8. Given that i = 10% and the data below: Alternative Project

9. If the proposals are independents, which one(s) should be selected with MARR =18%?

a. Alternative A, B, C, and D

b. Alternative B, C, and D

c. Only Alternative B

d. Only Alternative B and C

10. If the proposals are mutually exclusive, which should be selected with MARR=15%?

a. Alternative A, B, C, and D

b. Only alternative B

c. Alternative B and C

d. Only alternative C

11. If the proposals are mutually exclusive, which should be selected with MARR=10%?

a. Select alternative D

b. Select alternative C

c. Select alternative B

d. Select all alternatives A, B, C, and D

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