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please show the work Q1 Data of two alternatives is given below for 1-8%. Alt X can be replaced by the end of its useful
please show the work
Q1 Data of two alternatives is given below for 1-8%. Alt X can be replaced by the end of its useful life time... Using Net Present Worth (NPW) analysis, determine the better Alt. Do nothing is a valid alternative. Alt. X Alt. Y Initial cost$12,500 $8,900 Annual benefit $6,800 $2,000 Salvage value $5,000 $8,900 Life in years 2 years 4 Years 11,g00 Q2 Data of two mutually exclusive equipment alternatives is shown below. Each equipment has a useful life time of 5 years with interest rate of 10%. Using the Annual Uniform Annual Analysis, find which equipment is desirable. Do nothing is a valid alternative. Equipment Equipment Initial Cost $50,000 $106,310 $16,000 $24,000 EUAB Salvage value$9,000 $O 03 Your company is considering ring two different options for some fa diff Amount First Cost Annual Cost Savings $15,000/5,000 ns for some factory equipment. Option B Option A Increment yr, $55,000/yr. The useful lives of both options are 10 years and the equipment valid option. has 0 salvage value. Do nothing is a What is the approximate internal rate of return IRR)o interest rate from the tables-no need to interpolate.) a. b. What is the approximate internal rate of return of Option B? (Find the nearest interest rate from the tables- no need to interpolate.) Using incremental rate of return nalysis, find AIRR (Find the nearest interest rate from the tables - no need to interpolate.) c. d. If MARR = 10%, what is the better optionStep by Step Solution
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