Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a. The AW of the alternative A is $ - 13,300). (Round to the nearest hundreds.) The AW of the alternative B is $ -

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
a. The AW of the alternative A is $ - 13,300). (Round to the nearest hundreds.) The AW of the alternative B is $ - 11,900 (Round to the nearest hundreds.) b. The AW of the alternative A is $ - 13,300. (Round to the nearest hundreds.) The AW of the alternative B is $ - 13,000. (Round to the nearest hundreds.) Two mutually exclusive alternatives are being considered for the environmental protection equipment at a petroleum refinery. One of these alternatives must be selected. a. Which environmental protection equipment alternative should be selected? The firm's MARR is 20% per year. Assume the equipment will be needed indefinitely Assume ropeatability is appropriate for this comparison b. Assume the study period is shortened to five years. The market value of Alternative B after five years is estimated to be $16,000. Which alternative would you recommend? Assume repeatability is appropriate for this comparison i Data Table Capital investment Annual expenses Market value at the end of useful life Useful life Alternative A $19,000 5,250 1,100 5 years Alternative B $40,000 3,750 4,100 10 years Discrete Compounding; i = 20% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F F/P P/F PIA A/F 1.2000 0.8333 1.0000 0.8333 1.0000 1.4400 2.2000 1.5278 0.4545 1.7280 0.5787 3.6400 2.1065 0.2747 2.0736 0.4823 5.3680 2.5887 0.1863 2.4883 0.4019 7.4416 2.9906 0.1344 2.9860 0.3349 9.9299 3.3255 0.1007 3.5832 0.2791 12.9159 3.6046 0.0774 FIA N 1 2 3 4 5 6 7 Capital Recovery Factor To Find A Given P A/P 1.2000 0.6545 0.4747 0.3863 0.3344 0.3007 0.2774 0.6944 W 1 2 3 4 5 6 7 8 9 1.2000 1.4400 1.7280 2.0736 2.4883 2.9860 3.5832 4.2998 5.1598 6.1917 7.4301 8.9161 10.6993 12.8392 15.4070 0.8333 0.6944 0.5787 0.4823 0.4019 0.3349 0.2791 0.2326 0.1938 0.16151 0.1346 0.1122 0.0935 0.0779 0.0649 1.0000 2.2000 3.6400 5.3680 7.4416 9.9299 12.9159 16.4991 20.7989 25.9587 32.1504 39.5805 48.4966 59.1959 72.0351 0.8333 1.5278 2.1065 2.5887 2.9906 3.3255 3.6046 3.8372 4.0310 4.1925 4.3271 4.4392 4.5327 4.6106 4.6755 1.0000 0.4545 0.2747 0.1863 0.1344 0.1007 0.0774 0.0606 0.0481 0.0385 0.0311 0.0253 0.0206 0.0169 0.0139 1.2000 0.6545 0.4747 0.3863 0.3344 0.3007 0.2774 0.2606 0.2481 0.2385 0.2311 0.2253 0.2206 0.2169 0.2139 10 11 12 13 14 15

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cash, Corruption And Economic Development

Authors: Vikram Vashisht

1st Edition

1032096888, 9781032096889

More Books

Students also viewed these Accounting questions

Question

=+ Is the information source free from bias on the subject?

Answered: 1 week ago

Question

=+ Is the information source knowledgeable about the subject?

Answered: 1 week ago

Question

=+2. How will it be used?

Answered: 1 week ago