Two mutually exclusive alternatives are being considered. If the minimum attractive rate of return is 8%, which

Question:

Two mutually exclusive alternatives are being considered.

Year -$2500 -S6000 +746 +1664 +1664 2 +746 +746 +1664 +746 +1664 +746 5 +1664 3.

If the minimum attractive rate of return is 8%, which alternative should be selected? Solve the problem by

(a) Present worth analysis "

(b) Annual cash flow analysis

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Engineering Economics

ISBN: 9780195168075

9th Edition

Authors: Ted G. Feller

See More Books

Question Posted: Feb 25, 2010 02:34 AM

See More Questions

Answer all the questions and write neat. Show work 11 During a thunderstorm, a lightning strike transfers 12 coulombs of charge in 2.0 10-3 second. What is the average current produced in this...
Two alternatives are being considered: If the minimum attractive rate of return is 7%, which alternative should be selected? $9200 $5000 First cost Uniform annual benefit $1850 $1750 Useful life, in...
Two mutually exclusive alternatives are being considered. Both have a 10-year useful life. If the MARR is 8%, which alternative is preferred? tnitial cost Uniform annual benefit $100.00 $0.00 11.93...
You are given the following prices for zero coupon bonds with $1,000 face amount: One-year bond Two-year bond Three year bond $945 $920 $900 Find the price today for a two-year 4% coupon bond.
1. Cubic polynomial function f has real zeros 2, 1/2, and 3, and its leading coefficient is negative. Write an equation for f and sketch its graph. How many different polynomial functions are...
Laura and Bruce Trethewey hired Basement Waterproofing Nationwide, Inc. (BWNI) to waterproof the walls in their basement for a fee of $2,500. BWNIs contract stated: BWNI will service any seepage in...
Suppose $X \sim N(0,1)$ and $W_{n} \sim \chi_{n}^{2}$ independently for any positive integer $n$. Let $V_{n}=X / \sqrt{W_{n}} / n$. a. We know $V_{n} \sim t_{n}$. Show that $V_{n}^{2}$ follows an...
Mayberry Company has two fringe benefit plans for its employees: 1. It grants employees 2 days vacation for each month worked. Ten employees worked the entire month of March at an average daily wage...
ABC Company, a wooden products manufacturer, is developing a cash budget for March, April, and May. Its sales in January and February were $ 1 5 0 , 0 0 0 and $ 3 0 0 , 0 0 0 respectively. Sales of $...
If two customers are asked to list their choice of ice cream flavor from among vanilla, chocolate, and strawberry, list the sample space showing the possible outcomes.
Consider two mutually exclusive alternatives: If the MARR is 8%, which alternative should be selected? Year -$5000 -$5000 -3000 +2000 +4000 +2000 +4000 +2000 4 +4000 +2000 3.
A contractor is considering whether to purchase or lease a new machine for his layout site work. Purchasing a new machine will cost $12,000 with a salvage value of $1200 at the end of the machine's...
The ages (in years) of 11 children and the numbers of words in their vocabulary (a) Display the data in a scatter plot, (b) Calculate the sample correlation coefficient r, (c) Describe the type of...
For this question consider U.S. as the domestic economy and Japan as the foreign country that is a major trading partner of U.S. Drawing suitable graphs, explain how the exchange rate of dollar in...
You are being asked to compose an extended visual analysis. Take a little while to browse the images and choose one that will be the subject of your essay. After you have chosen an image, take some...
Calculate the equivalent resistance Rab (i.e., seen across the terminals a and b) for the circuits shown in the figures below. a b a b 4 36 30 www 14 www (a) 16 20 26 www 18 6 (b) www 12 10...
Question 16 (1 point) The following sentence contains correct capitalization: Tim Hortons' famous double-double has helped the chain become the most profitable division of the fast-food giant...
Question 5 The following information pertains to Questions 5 - 6. Consider the design of a single stub matching network (MN) for Z = (40+ j 30) 2 and Z = 50 2. Assume a shunt short-circuited stub....
A conducting, thick spherical shell of inner radius $100 \mathrm{~mm}$ and outer radius $120 \mathrm{~mm}$ has no net charge. A particle carrying a $3.0-\mathrm{nC}$ charge is placed at its...
One hundred pounds of water at atmospheric pressure are heated from 60F to 200F. What is the enthalpy change? The internal energy change? Why is the difference between the internal energy change and...
Find f. f'(x) = 2x 3/x 4 , x > 0, f(1) = 3
A man is planning to retire in 20 years. Money can be deposited at 6% interest compounded monthly. and it is also estimation () rate will be 5% compounded annually. What amount of end-of mi month...
On her 25th birthday, a young woman engineer decides to start saving toward building up a retirement fund that pays 8% interest compounded quarterly (the market interest rate). She feels that...
The following data indicate the median price of unleaded gasoline during the last 10 years for California residents: Period Price ($) 1999......................... $1.20...
Suppose the North Carolina University system tests the idea that computerization of statistics classes increases student performance in the courses. If the computers are found to have a beneficial...
M. Handy is a self-employed painter who earned $32,400 last year. Her FICA tax rate is 15.3% of her earnings. How much FICA tax did she pay?
Using the same iThe Shouldice Hospital specializes in hernia operations. They have a special procedure that not only has a much higher rate of long-term success than other hospitals, but also allows...

Two mutually exclusive alternatives are being considered. If the minimum attractive rate of return is 8%, which

Question:

Year -$2500 -S6000 +746 +1664 +1664 2 +746 +746 +1664 +746 +1664 +746 5 +1664 3.

Step by Step Answer:

a Present Worth Analysis Maximize NPW NPW A 746 PA 8 5 2500 746 3993 2500 4...View the full answer

Engineering Economics

Students also viewed these Economics questions