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Consider two alternatives for solid-waste removal. a. How much more expensive (in terms of capital investment only) could Alternative B be in order to breakeven

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Consider two alternatives for solid-waste removal. a. How much more expensive (in terms of capital investment only) could Alternative B be in order to breakeven with Alternative A? b. How sensitive is the after-tax PW of Alternative B to cotermination of both alternatives at the end of year 10? c. Is the initial decision to adopt Alternative B in Part (a) reversed if our company's annual operating expenses for Alternative B (\$2.03 million per year) unexpectedly double? Explain why (or why not). Click the icon to view the data for the alternatives. Click the icon to view the GDS Recovery Rates (rk) for the 15-year property class. Click the icon to view the interest and annuitv table for discrete comboundina when the MARR is 10% ber vear. a. Calculate the PW value for Alternative A. PWA(10%)=$ million (Round to two decimal places.) Calculate the PW value for Alternative B. PWB(10%)=$ million (Round to two decimal places.) \$ million can be invested in Alternative B to breakeven with Alternative A. (Round to two decimal places.) b. Calculate the PW value for Alternative B at the end of year 10. PWB(10%)=$ million (Round to two decimal places.) The sensitivity of Alternative B to cotermination at EOY 10 is \%. (Round to one decimal place.) c. If our company's annual operating expenses for Alternative B unexpectedly double, the total present worth of Alternative B is $ million. (Round to two decimal places.) The initial decision to adopt Alternative B Alternative A : Build a solid-waste processing facility. Alternative B : Contract with vendors for solid-waste disposal Financial variables are as follows: after intermediate recovery. Financial variables are as follows: \begin{tabular}{cc} \hline \multicolumn{2}{c}{ GDS Recovery Rates (rk)} \\ \hline Year & 15-year Property Class \\ \hline 1 & 0.0500 \\ 2 & 0.0950 \\ 3 & 0.0855 \\ 4 & 0.0770 \\ 5 & 0.0693 \\ \hline 6 & 0.0623 \\ 7 & 0.0590 \\ 8 & 0.0590 \\ 9 & 0.0591 \\ 10 & 0.0590 \\ \hline 11 & 0.0591 \\ 12 & 0.0590 \\ 13 & 0.0591 \\ 14 & 0.0590 \\ 15 & 0.0591 \\ \hline 16 & 0.0295 \\ \hline \end{tabular} Consider two alternatives for solid-waste removal. a. How much more expensive (in terms of capital investment only) could Alternative B be in order to breakeven with Alternative A? b. How sensitive is the after-tax PW of Alternative B to cotermination of both alternatives at the end of year 10? c. Is the initial decision to adopt Alternative B in Part (a) reversed if our company's annual operating expenses for Alternative B (\$2.03 million per year) unexpectedly double? Explain why (or why not). Click the icon to view the data for the alternatives. Click the icon to view the GDS Recovery Rates (rk) for the 15-year property class. Click the icon to view the interest and annuitv table for discrete comboundina when the MARR is 10% ber vear. a. Calculate the PW value for Alternative A. PWA(10%)=$ million (Round to two decimal places.) Calculate the PW value for Alternative B. PWB(10%)=$ million (Round to two decimal places.) \$ million can be invested in Alternative B to breakeven with Alternative A. (Round to two decimal places.) b. Calculate the PW value for Alternative B at the end of year 10. PWB(10%)=$ million (Round to two decimal places.) The sensitivity of Alternative B to cotermination at EOY 10 is \%. (Round to one decimal place.) c. If our company's annual operating expenses for Alternative B unexpectedly double, the total present worth of Alternative B is $ million. (Round to two decimal places.) The initial decision to adopt Alternative B Alternative A : Build a solid-waste processing facility. Alternative B : Contract with vendors for solid-waste disposal Financial variables are as follows: after intermediate recovery. Financial variables are as follows: \begin{tabular}{cc} \hline \multicolumn{2}{c}{ GDS Recovery Rates (rk)} \\ \hline Year & 15-year Property Class \\ \hline 1 & 0.0500 \\ 2 & 0.0950 \\ 3 & 0.0855 \\ 4 & 0.0770 \\ 5 & 0.0693 \\ \hline 6 & 0.0623 \\ 7 & 0.0590 \\ 8 & 0.0590 \\ 9 & 0.0591 \\ 10 & 0.0590 \\ \hline 11 & 0.0591 \\ 12 & 0.0590 \\ 13 & 0.0591 \\ 14 & 0.0590 \\ 15 & 0.0591 \\ \hline 16 & 0.0295 \\ \hline \end{tabular}

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