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? 11 1 2 3 4 5 6 7 8 10 11 12 13 14 15 16 17 18 19 20 21 Single Payment Compound Present Amount Worth Factor Factor Find F Find P Given P Given F F/P PF 1.08 9259 1.166 8573 1.260 .7938 1.360 7350 6806 1.587 .6302 1.714 5835 1.851 5403 1.999 5002 2.159 4632 2.332 4289 2.518 3971 2.720 3677 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 0920 11.737 OSS2 12.676 0789 13.690 .0730 14.785 0676 21.725 0460 31.920 0313 46,902 0213 68. 014 0145 101.357 00988 Sinking Fund Factor Find A Given F AF 1.0000 480S JOSO 2219 1705 1363 1121 0940 OSOI 0690 .0601 0527 0465 0413 .0365 0330 0296 0267 0241 .0219 0198 0180 0164 0150 0137 0125 0114 0105 00962 00883 00811 00745 00685 00630 100580 00386 00259 00174 0011 00080 Compound Interest Factors Uniform Payment Series Capital Compound Recovery Amount Factor Factor Find A Find F Given P Given A A/P FIA 1.ONDO 1.000 5608 2.080 3880 3.346 3019 4.506 2505 5.867 2163 7336 1921 8.923 1740 10.637 1601 12.488 1490 14.487 1401 16,645 1327 18.977 1265 21.495 24.215 1168 27.152 1130 30.324 1096 33.750 1067 37.450 1041 41.446 1019 45.762 0998 50.423 0980 55.457 0964 60.893 0950 66.765 0937 73.106 0925 79.954 0914 87.351 0905 95. 339 0896 103.966 0558 173.283 0881 123.346 0875 134214 0869 145.951 0863 138.627 OS 172.317 08:39 259.057 0826 386,506 0817 573.771 0812 848 925 12532 Present Worth Factor Find P Given A PIA 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 10.810 10.935 11.051 11.158 11.258 11.350 11.435 11.514 11.587 11.655 IL.925 12.IOS 12.233 12319 12377 23 24 25 26 27 28 30 31 32 14 35 40 45 50 55 60 314% Present Worth Factor Find P Glven A n P/A 1 4 6 7 8 9 10 12 13 14 15 16 17 18 19 20 21 22 23 Single Payment Compound Present Amount Worth Factor Factor Find F Find P Glven P Glven F F/P P/F 1.008 19926 1.015 9852 1.023 9778 1.030 9706 1.038 .9633 1.046 .9562 1.054 9490 1.062 9420 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 1.233 .8112 1.242 8052 1.251 7992 1.309 .7641 1.348 .7416 1.431 6986 1.453 6882 1.475 6780 1.566 6387 1.687 5927 1.713 5839 1.818 5500 1873 5338 Sinking Fund Factor Find A Given F A/F 1.0000 4981 3308 2472 .1970 .1636 1397 1218 1078 0967 0876 0800 0735 0680 .0632 0591 0554 .0521 0492 0465 0441 .0420 0400 0382 .0365 0350 0336 0322 0310 0298 .0243 0215 0174 0166 0158 0133 0109 0105 .00917 00859 Compound Interest Factors Uniform Payment Series Capital Compound Recovery Amount Factor Factor Find A Find F Given P Given A A/P FIA 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 05-40 21:491 0516 22.653 0495 23.823 0475 25.001 0457 26.189 0440 27.385 0425 28.591 0411 29.805 .0397 31.029 0385 32.261 .0373 33 503 0318 41.153 0290 46.447 0249 57.521 0241 60.395 0233 63 312 0209 75.425 0184 91.621 0180 95.008 0167 109.074 0161 116.428 0.993 1.978 2956 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 31.447 34.447 40.185 41.567 42.928 48.174 54.305 55.477 59.995 62.154 25 26 27 28 29 30 36 40 18 50 52 60 70 72 80 84
