4. (20) Two sites are being considered for a new warehouse with costs and revenues as listed below. Assume a 10-year planning horizon for each site. Site A Site B Initial Cost $7.2 M $8.1 M Annual Costs $0.7 M $0.9 M Annual Revenues $1.7 M $2.3 M (a) Using a MARR of 8%, which site would you select based on its PW? (b) What is the external rate of return (ERR) for site B? n 1 4 5 6 8 10 11 12 Present Worth Factor Find P Given A P/A 0.926 1.783 2.577 3.312 3.993 4.623 5.206 5.747 6,247 6.710 7.139 7.536 7.904 8.244 8.559 8.851 9.122 9.372 9.604 9.818 10.017 10.201 10.371 10.529 10.675 0.3971 Single Payment Compound Present Amount Worth Factor Factor Find F Find P Given P Given F F/P P/F 1.080 .9259 1.166 .8573 1.260 .7938 1.360 7350 1.469 .6806 1.587 .6302 1.714 5835 1.851 5403 1.999 5002 2.159 .4632 2.332 4289 2.518 2.720 3577 2.937 3405 3.172 3152 3.426 2919 3.700 2703 3.996 2502 4.316 2317 4.661 2145 5.034 1987 5.437 1839 5.871 1703 6.341 1577 6.848 1460 7.396 1352 7.988 1252 8.627 1159 9.317 .1073 10.063 0994 10.868 0930 11.737 0852 12.676 0789 13.600 0730 14.785 0676 2725 0460 11.000 0313 46.002 0213 68.914 05 101257 CHOS Sinking Fund Factor Find A Given F A/F 1.0000 .4808 .3080 2219 1705 1363 .1121 0940 .0801 .0690 ,0601 0527 .0465 .0413 .0368 0330 0296 0267 .0241 0219 .0198 0180 0164 0150 0132 0125 0114 0105 00962 008 14 15 16 17 18 19 20 Uniform Payment Series Capital Compound Recovery Amount Factor Factor Find A Find F Given P Given A A/P F/A 1.0800 1.000 .5608 2.080 .3880 3.246 .3019 4,506 2505 5.867 -2163 7.336 .1921 8.923 .1740 10.637 .1601 12.488 1490 14.487 1401 16,645 .1327 18.977 1265 21.495 .1213 24.215 1168 27.152 1130 30.324 1096 33.750 1067 37.450 1041 41.446 1019 45.762 .0998 50.423 0980 $5.457 0964 60.893 0950 66.765 0937 73.106 0925 79.954 0914 87.351 0905 95.330 0896 103 966 0888 113283 0881 120.346 0875 134.214 0869 145951 0863 158.627 0858 17217 18 19 259.057 0826 386506 0817 573.771 0812 848.925 OSOS 12513 21 22 23 24 25 26 27 28 20 30 31 10.810 10.935 11.051 11.158 11.258 11.350 11435 11.514 11587 11.655 11.925 12.108 12.213 12319 12177 00811 00745 ORG 00630 00580 00386 0020 00174 0018 ON 14 25 10 45 50 55 60 314% Compound Interest Factors n 1 3 4 5 Sinking Fund Factor Find A Glven F A/F 1.0000 .4981 .3308 .2472 .1970 .1636 .1397 .1218 .1078 .0967 .0876 .0800 .0735 20680 ,0632 6 8 9 10 11 12 13 14 15 Single Payment Compound Present Amount Worth Factor Factor Find F Find P Given P Glven F F/P P/F 1.008 .9926 1.015 9852 1.023 9778 1.030 9706 1.038 9633 1.046 9562 1.054 9490 1.062 19420 1.070 9350 1.078 9280 1.086 9211 1.094 9142 1.102 .9074 1.110 .9007 1.119 8940 1.127 8873 1.135 8807 1.144 8742 1.153 8676 1.161 8612 1.170 8548 1179 8484 1.188 8421 1.196 8358 1.205 8296 1.214 8234 1.224 8173 1.23 X112 8052 1.251 7992 1309 7641 1348 7416 1431 086 1.453 6882 1.75 6780 1 566 6387 1.687 5027 171 S819 IX 35 16 17 18 19 20 Uniform Payment Series Capital Compound Recovery Amount Factor Factor Find A Find F Glven P Given A A/P F/A 1.0075 1.000 5056 2.008 3383 3.023 2547 4.045 .2045 5.076 .1711 6.114 .1472 7.160 .1293 8.213 .1153 9.275 1042 10.344 0951 11.422 .0875 12.508 0810 13.602 .0755 14.704 0707 15,814 0666 16.932 0629 18.059 0596 19.195 0567 20.339 0540 21.491 0516 22.653 0495 23.823 0475 25.00 0457 26.189 0440 27 385 0425 28.591 0411 29.805 0.197 31.029 0385 32.261 0871 11.503 0318 41.153 0290 46.447 0240 57.521 0241 60.393 0233 03312 120 75425 184 91 621 DINO -0.008 Present Worth Factor Find P Given A P/A 0.993 1.978 2.956 3.926 4.889 5.846 6.795 7.737 8.672 9.600 10.521 11.435 12.342 13.243 14.137 15.024 15.905 16.779 17.647 18.508 19.363 20.211 21.053 21.889 22.719 23.542 24,360 25.171 25.976 26.775 21 22 23 24 25 26 27 28 29 10 36 40 18 30 52 LO591 0554 .0521 0492 0465 10441 0420 0400 0382 0365 .0350 0336 0322 0310 0298 0243 0215 0174 0166 D158 011 010) 0105 17 31.447 34,447 40.185 41 507 70 72 NO 48.174 54.305 55.477
