HELLO EXPERTS, HOPE EVERYONE ITS DOING GREAT TODAY, CAN SOMEONE HELP ME FINDING THE SOLUTIONS FOR THE NEXT QUESTIONS ? THANK YOU.
Given the choice, is it easier to work a problem using AW than a PW when comparing two alternatives? What is the major advantage that the annual worth method has over the present worth method? An asset with a first cost of $20,000 has an annual operating cost of $12,000 and a $4000 salvage value after its 4 -year life. The project will be needed for 6 years. This means that the asset will have to be repurchased and kept for only 2 years. a. Determine the capital recovery amount over the 4-year life if a MARR of 10% per year is required. You are about to start a side business while in college. To do so, you just spent $30,000 for a used, fully equipped taco truck. You plan to provide quality food at lunch to construction workers at sites where there is no visible food outlet that is fast, affordable, and offers tasty, zesty lunches. The total AOC is estimated to be $12,000 and gross revenue is expected to be in the range of $20,000 to $30,000 per year. If the truck's salvage value after 5 years is estimated to be $14,000 and you want a return of 10% per year on your investment, what is the minimum net annual income required to meet your expectation? Is the estimated gross revenue range sufficient? White Oaks Properties builds strip shopping centers and small malls. The company plans to replace its refrigeration, cooking, HVAC, and other equipment with newer models in the entire center built 9 years ago. The original purchase price of the equipment was $638,000 nine years ago and the operating cost has averaged $240,000 per year. Determine the equivalent annual cost of the installed equipment, if the company can now sell it for $184,000. The company's MARR is 25% per year. Given the choice, is it easier to work a problem using AW than a PW when comparing two alternatives? What is the major advantage that the annual worth method has over the present worth method? An asset with a first cost of $20,000 has an annual operating cost of $12,000 and a $4000 salvage value after its 4 -year life. The project will be needed for 6 years. This means that the asset will have to be repurchased and kept for only 2 years. a. Determine the capital recovery amount over the 4-year life if a MARR of 10% per year is required. You are about to start a side business while in college. To do so, you just spent $30,000 for a used, fully equipped taco truck. You plan to provide quality food at lunch to construction workers at sites where there is no visible food outlet that is fast, affordable, and offers tasty, zesty lunches. The total AOC is estimated to be $12,000 and gross revenue is expected to be in the range of $20,000 to $30,000 per year. If the truck's salvage value after 5 years is estimated to be $14,000 and you want a return of 10% per year on your investment, what is the minimum net annual income required to meet your expectation? Is the estimated gross revenue range sufficient? White Oaks Properties builds strip shopping centers and small malls. The company plans to replace its refrigeration, cooking, HVAC, and other equipment with newer models in the entire center built 9 years ago. The original purchase price of the equipment was $638,000 nine years ago and the operating cost has averaged $240,000 per year. Determine the equivalent annual cost of the installed equipment, if the company can now sell it for $184,000. The company's MARR is 25% per year
