Question: Alternatives (ME) A B D E Initial cost -45000 -38000 -32000 -28000 -25000 Revenues 16000 14000 12000 10000 8000 Annual operating Cost -3000 -2500 -3200

Alternatives (ME) A B D E Initial cost -45000 -38000 -32000 -28000 -25000 Revenues 16000 14000 12000 10000 8000 Annual operating Cost -3000 -2500 -3200 -2000 -1800 Life time 5 5 5 5 Salvage value $12,000 $12,500 $12,200 $13,000 $15,000 5 answer the following questions: 1. Find Pw, Aw, and FW to select the most vital project. 1 2. Find Pw, Aw, and FW to select the most vital project if the study period is year 3 for all of the alternatives. 3. Determine which alternative should be selected based on incremental ROR analysis? (ch:8). 4. Calculate the annual SL depreciation for 6 years and plot the yearly book value. 5. Calculate and compare the schedules for annual depreciation and book value using two methods: DB at 150% of the straight-line rate and at the DDB rate (i.e. Get D1, D2, D3, D4, D5, and D6 and BV1, Bv2, BV3, BV4, BV5, and BV6 using: SL, DB, and DDB). 6. Plot the book values of the two declining balance methods (DB and DDB). Alternatives (ME) A B D E Initial cost -45000 -38000 -32000 -28000 -25000 Revenues 16000 14000 12000 10000 8000 Annual operating Cost -3000 -2500 -3200 -2000 -1800 Life time 5 5 5 5 Salvage value $12,000 $12,500 $12,200 $13,000 $15,000 5 answer the following questions: 1. Find Pw, Aw, and FW to select the most vital project. 1 2. Find Pw, Aw, and FW to select the most vital project if the study period is year 3 for all of the alternatives. 3. Determine which alternative should be selected based on incremental ROR analysis? (ch:8). 4. Calculate the annual SL depreciation for 6 years and plot the yearly book value. 5. Calculate and compare the schedules for annual depreciation and book value using two methods: DB at 150% of the straight-line rate and at the DDB rate (i.e. Get D1, D2, D3, D4, D5, and D6 and BV1, Bv2, BV3, BV4, BV5, and BV6 using: SL, DB, and DDB). 6. Plot the book values of the two declining balance methods (DB and DDB)
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