Answered step by step
Verified Expert Solution
Question
1 Approved Answer
B. Problems and Questions The Superior Landscaping Company must replace one or two of his aging utility trucks in calendar year 2020. The key parameters
B. Problems and Questions The Superior Landscaping Company must replace one or two of his aging utility trucks in calendar year 2020. The key parameters of the three trucks under scrutiny are provided below Parameters 1. Initial Cost GM 265,000 RAM 275,000 ($) 2. Revenues FORD 235,000 220,000 at EOY1 increasing by 2% annually thereafter. 110,000 at EOY1 to EOY3. 240,000 at EOY1 increasing by $3,000 annually thereafter. 254,000 at EOY1 increasing by 1.0% annually thereafter. ($) 3. Operating costs 145,000 at EOY1 decreasing by $1,000 annually thereafter 183,000 at EOY1 decreasing by 1% annually thereafter. ($) 6,000 17,000 12,000 4. End-of-life salvage value ($) 5. Useful life (years) All parameter values are fictitious. EOY = End-of-year Industry Standard = 3 years MARR = 10% 1. Ford's Net Present Worth (NPW) (rounded to the nearest $100) of a) $45,100; b) $51,500; c) $53,400; d) $56,700. RAM's NPW (rounded to the nearest $100) is a) $69,800; b) $76,300; c) $79,300; d) $83,400. GM's Net Future Worth (NFW) at EOY4 (rounded to the nearest $100) is a) $95,500; b) $98,600; c) $100,200; d) $102,800. Ford's Annual Equivalent Worth (AEW) (rounded to the nearest $100) is a) $21,500; b) $24,600; c) $25,900; d) $28,200. RAM's AEW (rounded to the nearest $100) over 18 years it was repeated several times) is a) $17,700; b) $19,200; c) $20,800; d) $21,100
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started