Question: (a) Based on future worth analysis, which of the four alternatives is preferred at 6% interest? (b) Based on future worth analysis, which alternative is

(a) Based on future worth analysis, which of the four alternatives is preferred at 6% interest?

(b) Based on future worth analysis, which alternative is preferred at 15% interest?

(c) Based on the payback period, which alternative is preferred?

(d) At 7% interest, what is the benefit-cost ratio for Alt. G?

Year                 E                     F                      G                     H

0                   -$90              -$110             -$100              -$120

1                      20                    35                    0                       0

2                      20                    35                  10                       0

3                      20                    35                  20                       0-

4                      20                    35                  30                       0

5                      20                    0                    40                       0

6                      20                    0                    50                  180

Step by Step Solution

★★★★★

3.50 Rating (177 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a Future Worth Analysis at 6 NFW E 20 FA 6 6 90 FP 6 6 1179 NFW F 35 FA 6 4 FP 6 ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

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

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

7-B-E-M (262).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Q:

Which of the four P's has come to be known by a new term? Why the change?

Q:

Which of the four manufacturing quality dimensions are most likely to improve revenue? Which ones are related more to cost reduction or to both revenue and cost?

Q:

Which of the four non routine cognitive skills identified in Chapter 1 (i.e., abstract reasoning, systems thinking, collaboration, and experimentation) did you use to answer the previous question?

Q:

9-54 and 9-55 i Rased on the payback period, which atermative is pret on future worth analysis, which of the four d on future worth analysis, which alterma- cive is preferred at 20% interest, term...

Q:

Please help Assignment 5. Deciding to buy or rent Your task Determine if it would be economically better for you to buy a home or rent an apartment. Format Submit a clear and concise professional...

Q:

i=12% Q2) for the following two alternatives, solve questions 2.1 through 2.5, assume (=12% and mutually exclusive Alternatives. Alternative 1 Alternative 2 Initial cost 100,000 120,000 Annual cost...

Q:

Determine if it would be economically better for you to buy a home or rent an apartment. Content Imagine you have decided to stay at the university six more years to do a masters degree and then a...

Q:

what would be the answer if part a was as follows: Home Price - $ 5 2 9 , 0 0 0 [ 1 ] Minimum down payment required by the loan provider. - 2 0 % [ 2 ] Down payment amount - $ 1 0 5 , 8 0 0 Loan...

Q:

Solve the following problems. Show all your work to receive credit. 1. Ashley Foods, Inc. has determined that any one of five machines can be used in one phase of its chili canning operation. The...

Q:

9-50 og of the canning seas TQUES in June, at the beginning of will save $500 per month for the the plant is in operation. Mai be 4 months each Maintenance Co temative has a 6-year useful life and no...

Q:

Is there any way for Mikes Bikes to avoid having excess capacity in the long run?

Q:

You are given the following data based on 10 pairs of observations on Y and X. ; Sigma Yi= 1110 ,Sigma Xi=1680 , sigma XiYi= 204200, SigmaXi^2=315400, sigmaYi^2=133300. Assuming all the assumptions...

Q:

C HALLENGE Transforming the perch data. Refer to the previous exercise. (a) Try to find a better model using a transformation of length. One possibility is to use the square. Make a plot and perform...

Q:

Must two quantities have the same dimensions if you are multipling them a. o b. If you are dividing them O c. If you are subtracting them d. None of the above

Q:

What are the risk factors that contribute to this high rate and what strategies/ solutions/ recommendations are needed to proper address this problem? Write a paper about Chronic Obstructive...

Q:

What are the risk factors and consequences of elder abuse and note some prevention strategies (from the reading, other sources, or your own ideas!). Post the URL of websites you used to answer this...

Q:

I Who discovered the atom?

Q:

Different types of screening methods are used by employers to make smart hiring decisions including tests that measure cognitive ability, physical ability, aptitude, personality traits and honesty....

Q:

A contractor purchased equipment costing $40,000 in 2010 when the M&S equipment cost index was at 1461.3. He remembers purchasing the same equipment for $21,771 many years ago, but he does not...

Q:

Use the exponent values in Table 15-6 to estimate the cost for the following equipment to be placed on an offshore drilling platform. Sample Exponent Values for Cost-Capacity Equations (a) The cost...

Q:

The on-site manager told you that the variable frequency drive (VFD) for a 300-hp motor costs $20,000. Make the best cost estimate possible for the VFD for a 100-hp motor. The exponent in the...

Q:

The cost of a 68 m2 falling-film evaporator was 1.52 times the cost of the 30 m2 unit. What exponent value in the cost-capacity equation yielded these results?

Q:

Reinforced concrete pipe (RCP) that is 12 inches in diameter had a cost of $12.54 per linear foot in Dallas, Texas in 2007. The cost for 24-inch RCP was $27.23 per foot. If the cross-sectional area...

Q:

A 4 - bit ALU can perform how many different arithmetic and logic operations?