Question
5-13) the answer is icluded Show me how he solve it step by step in details please because I try I could not solve this
5-13) the answer is icluded Show me how he solve it step by step in details please because I try I could not solve this problem
1) PW METHOD
PW OF CF A = -100,000 -100,000(P/A,12%,1) + 50,000(P/A,12%,9) - 50,000(P/A,12%,1) + 75,000(P/F,12%,10) = $106,631.91
PW OF CF B = -125,000 - 75,000(P/A,12%,1) + 70,000(P/A,12%,10) -70,000(P/A,12%,10) = $141,051.32
PW OF CF C = -200,000 + 50,000(P/A,12%,5) + 75,000(P/A,12%,10) - 75,000(P/A,12%,5) =$133,647.32
PW OF CF D = -100,000 -150,000(P/A,12%,1) +75,000(P/A,12%,5) - 75,000(P/A,12%,5) + 85,000(P/A,12%,9) -85,000(P/A,12%,5) + 90,000(P/F,12%,10) = $144,938.20
SO BASED ON PW WE CHOOSE CASH FLOW D.
2) AW METHOD
AW = R * PW / ( 1 - ( 1+ R) ^ - N
AW OF CF A = $18,872.16
AW OF CF B= $24,963.85
AW OF CF C = $23,653.46
AW OF CF D = $25,651.77
BASED ON ANNUAL WOTH METHOD WE CHOOSE CASH FLOW D
3) FW METHOD
FW = PW * ( 1+ R) ^ N
FW OF CF A = $331,182.5
FW OF CF B = $438,084
FW OF CF C = $415,088.3
FW OF CF D = $450,156.1
BASED ON FUTURE WORTH WE CHOOSE CASH FLOW D.
the end of the planning horizon. With a MARR of 10 a negligibeec using (a) the PW method, (b) the AW method, (c) the FW ing by 15% per year over the 5-year planning horizon, andanaintenanceaedt e the two machi 5-15. F are illustrated in the accompanying table. The cash flows (CF) are aig a planning horizon. The MARR is 12%. Compare the alternatives snown for method, (b) the AW method. (c) the FW method. 5-12. Three mutually exclusive investment alternatives including the "d (CF) are shown for a S-ye the alternatives, using (a) the CF(C) EOY CFA) CF(B) 0 S0 $100,000 $150,000 0 30,000 50,000 0 +55.000 75,000 0 80.000 +100.000 0 105,000 125,000 0 130,000 150.000 5-1 5-13. Four mutually exclusive investment alternatives are illustrated in the accompanying table; the "do nothing" alternative is not feasible. The cash flows (CF) are shown fora 10-year planning horizon. The MARR is 12%. Determine which is best, using (a) the PW method, (b) the AW method, (c) the FW method. EOY CF(A) CFB) CFC) CFD) -$125,000 -$200,000 -$100,000 0 50,000 100,000 75,000 50.000 150,000 + 70,000 50.000 +75,000 70,000 75.000 85,000 +70,000 75,00090,000 6-9 50,000 + 10 75,000 70,000 5-14. Four mutually exclusive investment alternatives including the do are illustrated in the accompanying table. The cash flows (CF) do nohing" alternative (a) the PW method, (b) the AW method, (c) the FW method. e w ear. Determine which is best, using the end of the planning horizon. With a MARR of 10 a negligibeec using (a) the PW method, (b) the AW method, (c) the FW ing by 15% per year over the 5-year planning horizon, andanaintenanceaedt e the two machi 5-15. F are illustrated in the accompanying table. The cash flows (CF) are aig a planning horizon. The MARR is 12%. Compare the alternatives snown for method, (b) the AW method. (c) the FW method. 5-12. Three mutually exclusive investment alternatives including the "d (CF) are shown for a S-ye the alternatives, using (a) the CF(C) EOY CFA) CF(B) 0 S0 $100,000 $150,000 0 30,000 50,000 0 +55.000 75,000 0 80.000 +100.000 0 105,000 125,000 0 130,000 150.000 5-1 5-13. Four mutually exclusive investment alternatives are illustrated in the accompanying table; the "do nothing" alternative is not feasible. The cash flows (CF) are shown fora 10-year planning horizon. The MARR is 12%. Determine which is best, using (a) the PW method, (b) the AW method, (c) the FW method. EOY CF(A) CFB) CFC) CFD) -$125,000 -$200,000 -$100,000 0 50,000 100,000 75,000 50.000 150,000 + 70,000 50.000 +75,000 70,000 75.000 85,000 +70,000 75,00090,000 6-9 50,000 + 10 75,000 70,000 5-14. Four mutually exclusive investment alternatives including the do are illustrated in the accompanying table. The cash flows (CF) do nohing" alternative (a) the PW method, (b) the AW method, (c) the FW method. e w ear. Determine which is best, usingStep by Step Solution
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