Question: Consider the mutually exclusive alternatives given in the table below. MARR is 8 % per year. Assuming repeatability, what is the equivalent annual worth of

Consider the mutually exclusive alternatives given in the table below. MARR is 8 % per year. Assuming repeatability, what is the equivalent annual worth of the most profitable alternative? (Do not enter the dollar sign $ with your answer.)

_____________________________________________________________

X Y Z

_____________________________________________________________

Capital investment $80,000 $40,000 $64,000

Annual savings $24,000 $12,800 $19,200

Useful life (years) 8 12 16

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To find the equivalent annual worth EAW of the most profitable alternative follow these steps Calcul... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Consider the mutually exclusive alternatives given in the table on p. 309. The MARR is 10% per year. Assuming repeatability, which alternative should the company select? (a) Alternative Z (b)...

Consider the mutually exclusive alternatives given in the table below. The MARR is 10% per year. Assuming repeatability, which alternative should the company select? (a) Alternative X (b) Alternative...

Consider the two mutually exclusive alternatives given in Table P7.40. Table P7.40 (a) Determine the IRR on the incremental investment in the amount of $2,000. (b) If the firm's MARR is 10%, which...

According to a survey study conducted by Rossi (2013), the exchange rate predictability depends on: 1 sample period and model 2 the choice of predictor 3 forecast horizon and evaluation method 4 all...

On September 30, 2017, its fiscal year end, NS Services recorded an adjusting entry for $2,000 of interest it owes at year end and will include as part of its payment on October 31, 2017. On October...

Find f(x). f(x) = 1/(5x 3) 4 and f(1) = 90.

2. When reading speed slows down, decide if the information in the passage is important. If it is, note the problem so you can reread or get help to understand. If it is not important, ignore it.

Review exercise-calculate net income. At the beginning of the current fiscal year, the balance sheet of Cummings Co. showed liabilities of $438,000. During the year, liabilities decreased by $72,000;...

Javier and Anita Sanchez purchased a home on January 1, 2016, for $500,000 by paying $200,000 down and borrowing the remaining $300,000 with a 7 percent loan secured by the home. The loan requires...

Randomized block design: Researchers interested in identifying the optimal planting density for a type of perennial grass performed the following randomized experiment: Ten different plots of land...

Question 1 6 1 pts which is used for online storage and backup, involves multiple virtual servers that are usually hosted by third parties. Buffer storage Cache storage Cloud storage Kernel storage

Level 2: Modify the program to flash your initials using Morse code (See chart below). A "dot" would have the LED on for 100 ms and for a dash the LED would be on for 1000 mS

On-Line Course Foundations of Mathematics 11 Unit 4 Send-In Assignment 7. A school graduation class wants to hire buses and vans for a trip to Jasper National Park. Each bus holds 40 students and 3...

According to the article from your readings this week titled Active Defense: Using Deception and Trickery to Defeat Cyber Adversaries, what is the name of MITRE's cybersecurity framework built to...

III HW 7.3 Question 1 of 4 (1 point) | Question Attempt: 1 of Unlimited = 1 2 3 = 4 Manual Transmission Automobiles In a recent year, 6% of cars sold had a manual transmission. A random sample of...

The demand for E-Chupetin47 is very stable at 7900 units per month with virtually no variability. BabyGear pays $20 for each pacifier, and sells each unit for $35. The annual holding rate for these...

P6-3A Dctermine impact of rcacquired shares LO 2) AP Advanced Technologies Inc. reported the following information related to its shareholders' equity on January 1: Common shares, 1,000,000...

When is the indirect pattern appropriate, and what are the benefits of using it?

A 30-year fixed rate-mortgage is available now at 7% APR. Monthly payments (360 of them) will be made on a $200,000 loan. The realtor says that if you wait several months to obtain a mortgage, the...

A current asset (defender) is being evaluated for potential replacement. It was purchased four years ago at a cost of $62,000. It has been depreciated as a MACRS (GDS) five-year property-class asset....

Refer to Example 8-9. Sara has decided that saving more than 12% of her annual salary was unrealistic. She is considering postponing her retirement until 2027, but still wishes to have $500,000 (in...

Calculate the purchase price (flat) of each of the $1000 face value bonds

Each of the bond issues has a sinking fund requirement for retiring the entire principal amount of the issue on its maturity date. The coupon rates and rates of return on the sinking fund investments...