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Note: Please answer 12. The answer is B. Please use hand calculations. Use the following information for questions 10, 11 and 12. MARR = 20%
Note: Please answer 12. The answer is B. Please use hand calculations.
Use the following information for questions 10, 11 and 12. MARR = 20% Initial Cost Benefits Alternative 1 $75,000 $20,000 in years 1 and 2 $25,000 in years 3 and 4 $3,000 in year 1 Increasing by $500 per year $10.000 O&M Costs Salvage Value Life (years) 4 10. The NPW of Alternative 1 (over the given lifespan) is closest to ... a) $10,000 b)-$22,508 c)-S16,971 d) -$31,845 e) $17,803 f) $-24,028 11. The additional uniform annual benefit over the 4-year life to result in a ROR of 20% is closest to ... a) $5,627 b) S12,445 c) $8,694 d) S7,438 e) $7,778 f) $9,124 12. Assume the NPW of Alternative 1 (as calculated in problem #10) is $17,250 (It is not!). If Alternative 1 is to be compared with an alternative with a 12-year lifespan, the NPW for Alternative l necessary to make a decision is closest to ... a) $17,250 b) $29,582 c) $26,971 d) $51,750 e) $37,803 f) $54,028 Use the following information for questions 10, 11 and 12. MARR = 20% Initial Cost Benefits Alternative 1 $75,000 $20,000 in years 1 and 2 $25,000 in years 3 and 4 $3,000 in year 1 Increasing by $500 per year $10.000 O&M Costs Salvage Value Life (years) 4 10. The NPW of Alternative 1 (over the given lifespan) is closest to ... a) $10,000 b)-$22,508 c)-S16,971 d) -$31,845 e) $17,803 f) $-24,028 11. The additional uniform annual benefit over the 4-year life to result in a ROR of 20% is closest to ... a) $5,627 b) S12,445 c) $8,694 d) S7,438 e) $7,778 f) $9,124 12. Assume the NPW of Alternative 1 (as calculated in problem #10) is $17,250 (It is not!). If Alternative 1 is to be compared with an alternative with a 12-year lifespan, the NPW for Alternative l necessary to make a decision is closest to ... a) $17,250 b) $29,582 c) $26,971 d) $51,750 e) $37,803 f) $54,028Step by Step Solution
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