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A construction company is planning to purchase a 3D software. The company has two alternatives. These alternatives are direct procurement. Expenditures and incomes related

 

A construction company is planning to purchase a 3D software. The company has two alternatives. These alternatives are direct procurement. Expenditures and incomes related to alternatives are given below table. Year A Company B Company Service Procurement -40.000 -55.000 0 5.000+ X*100 8.000+X*100 10.000+X*100 10.000+X*100 10.000+X*100 2 15.000+ X*100 3 20.000+X*100 15.000+X*100 8.000+ X*100 4 15.000 25.000+ X*100 0 5 25.000 5.000+X*100 20.000 10.000+X*100 20.000 10.000+X*100 20.000+X*100 5.000+ X*100 0 a. Please compare first two alternatives (A company and B company) according to the payback period analysis and determine the optimum alternative. (X=2, Y=1) 0 1 b. Please compare the optimum alternative found in the first question with service procurement alternative with present value method. Single-Payment Compound- Amount Factor 6 7 A = P Single-Payment Present Worth Factor 1 [(1+i)n] P = F F = P(1 + i)" = P(F/P, i, n) Capital Recovery Factor i (1+i)n [(1 + i)n - 1] P = A A = P(A/P, i, n) P = A(P/A,i,n) Uniform Gradient Series for Feature Factor = F(P/F, i, n) Uniform-Series Present Worth Factor [(1 + i)" - 11 [145] F = Gx (+)-_n = G(F/G,i, n) i Uniform Series Compound Amount F = A [(1 + i)" - 11 2/~ n li (1+i)n- A = A +G(A/G, i, n) r= (1+c-1 + G | - = A(F/A, i, n) = F(A/F,i,n) Uniform Gradient Series Factor Uniform Gradient Series Factor A = A + G A = F d - Sinking Fund Factor [(1 + i)n n - G|-2- A = A - G (1+i)n A = A G(A/G, i, n) x = (1 + )m_1

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