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Determine the capitalized cost of a research laboratory which requires $100,000 for o construction, $20,000 per year for operating expenses, and $10,000 every three years
Determine the capitalized cost of a research laboratory which requires $100,000 for o construction, $20,000 per year for operating expenses, and $10,000 every three years for new and replacement equipment, assuming a MARR of 10% (10 pts.) 1. gibie s6lutions will not be graded. 2. Use a portfolio analysis of cash flows for the two mutually exclusive alternatives shown to select a project, assuming a 10% MARR. (10 pts.) End of Project Project Year 14000-$20,000 $3,500 S0 $3,500$2,300 $3,500 $4600 3,5006,900 5 $3,500$9,200 6 $3,500$11500 3. Shown are cash flows and B/C ratio for mutually exclusive alternatives; use an incremental B/C ratio based on present worth to recommend a project, assuming a 10% MARR (10 pts) Alternatives First Cost $30,000 $65,000 $40,000 Uniform Annual Benefit $8,000$13500 $12,000 Salvage Value Useful Life in years Benefit/Cost $3,0007500 $6,000 6 1.43 6 1.23 0.97 Assume IRR for project A and B cash flows exceed the 12% MARR, develop the Incremental ERR formula to determine the better alternative. (10 pts.) 4, End of Project Project Year A. 0 $25,000$35,000 1 $10,000 $12,50 2 $10,000 $12,50 3 $10,000 $12,5 4 $10,000 $12,5
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