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Find the present worth for the following cash flow for the following interest: A) Interest of 12% per year compounded monthly B) Interest of

Find the present worth for the following cash flow for the following interest: A) Interest of ( 12 % ) per year compounded

#1) Select the most economical among the following mutually exclusive alternatives using PW and AW methods of analysis at in  

Find the present worth for the following cash flow for the following interest: A) Interest of 12% per year compounded monthly B) Interest of 12% per year compounded quarterly C) Interest of 18% per year compounded monthly for the first year and 1% per month thereafter $200 $150 $250 $200 $150 $200 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 months Q#1) Select the most economical among the following mutually exclusive alternatives using PW and AW methods of analysis at interest rate of 10% per year: Machine A 20,000 First cost ($) Annual Operating Cost ($/year) Major repair ($) Life (years) Salvag ($) 5,000 for the first year and increases by 1,000 each year none 10 2,000 Machine B 50,000 2,000 per year up to year 10 and 5,000 per year thereafter 5,000 every 5 years including at year 40 40 5,000 Q#2) Find the Rate of Return for machines A and B in question #1 if the annual revenues for each machine is estimated at $20,000 per year.

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