Question: plz solve'em all i'll upvote for sure q1 q2 q3 A water district wishes to compare alternative plans for additional water supplies, using a forty-year


A water district wishes to compare alternative plans for additional water supplies, using a forty-year period of analysis and an interest rate of 6%. A gravity plan would require an investment of $5,000,000 for construction and $20,000 per year for operation and maintenance. A pumping plan would require $3,000,000 for initial construction, an additional investment of $500,000 in the tenth year, and $50,000 per year for operation and maintenance. The pumping plan would also incur power costs of $100,000 per year for the first ten years and after connection to another source of demand additional power costs of $100,000 per year. Consider four mutually exclusive alternatives: Initial Cost Uniform Annual Benefit A $400.0 $100.9 Alternative B $100.0 $200.0 $ 27.7 $ 46.2 D $500.0 $125.2 Each alternative has a five-year useful life and no salvage value. Based on a 6% interest rate, determine which alternative should be selected using: a) The payback period analysis. b) The benefit-cost ratio analysis. (Do not use the graphical approach) c) The rate of return analysis. (Do not use the graphical approach) A truck costs $7000 and has an estimated salvage value of $1000 at the end of 5 years useful life. Compute the depreciation schedule and book value for the truck to the end of its useful life by: a) (3 points) Straight Line method (SL) b) (3 points) Sum Of Years Digits method (SOYD) c) (4 points) Double Declining Balance (DDB) with conversion to straight line if necessary Use the Table below to fill in the results Straight Line Sum of Years Digits Year method method Depreciation Book Depreciation Book Value Value Value Value 1 Double Declining Balance method Depreciation Book Value Value 2. 3 3 4 5
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
