Question
Can you please show me how to do simple and discounted payback for this practice question? Based on the simple payback method, Gammas recovery period
Can you please show me how to do simple and discounted payback for this practice question?
Based on the simple payback method, Gammas recovery period (to the nearest half or full year) is a) 3.5 years; b) 4.5; c) 5.5; d) 6.0. 8. Based on the simple payback method, Betas project balance after 2 years (rounded to the nearest $100) is a) $-374,100; b) $-347,000; c) $-249,900; d) $154,300. 9. Based on the discounted payback method, Gammas recovery period (to the nearest half or full year) is a) 7.0 years; b) 7.5; c) 8.0; d) 9.5. 10. Based on the discounted payback method, Alphas project balance after 2 years (rounded to the nearest $100) is a) $-412,700; b) $-404,300; c) $-365,000; d) $100,800.
A company is considering the purchase of a new truck for its expanding landscaping business. The key parameters of the three trucks under scrutiny (Alpha, Beta and Gamma) are provided below Computer Parameters Alpha Beta Gamma Initia Cost 5! -3000 071 450,000001 430.00 0 20 2%annually | 2,000 annually 600,000 800,000 300,000 at EOY1 450,000 at EOY1 430,000 at EOY1 increasing by 3% | decreasing by increasing by 2. Revenues (S) annually thereafter. thereafter 280,000 at EOY1 1,000 annually thereafter 130,000 at EOY1 255,000 Eincreasing by increasing by 5,000 annually thereafter. 3. Operating Costs increasing by 2% annually thereafter thereafter 4. End-of-life salvage 15,000 5 10,000 5,000 10 value (S) 5. Useful life (years) 10 Industry Standard = 4 years . MARR= 10%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