Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 1 A company with a MARR = 10% is considering the two mutually exclusive options that will produce the same benefits. The costs associated
Problem 1 A company with a MARR = 10% is considering the two mutually exclusive options that will produce the same benefits. The costs associated with each option are shown below: Option A Option B Initial Cost $52,000 $64,000 Annual Cost $10,000 $10,000 Decreasing by $500 each year Constant each year Salvage Value $6,000 $8,000 Life 10 Years 10 Years The Present Worth of Cost (PWC) for OPTION A is closest to: a. $104,300 b. $99,690 c. $85, 240 d. $67,350 A company with a MARR = 10% is considering the two mutually exclusive options that will produce the same benefits. The costs associated with each option are shown below: Option A Option B Initial Cost $52,000 $64,000 $10,000 Annual Cost $10,000 Decreasing by $500 each year Constant each year Salvage Value $6,000 $8,000 Life 10 Years 10 Years The Present Worth of Cost (PWC) for OPTION A is closest to: a $104,300 b. $99,690 C. $85,240 d. $67,350 Problem 2 A company with a MARR = 10% is considering the two mutually exclusive options that will produce the same benefits. The costs associated with each option are shown below: Option A Option B Initial Cost $52,000 $64,000 Annual Cost $10,000 $10,000 Decreasing by $500 each year Constant each year Salvage Value $6,000 $8,000 Life 10 Years 10 Years The Present Worth of Cost (PWC) for OPTION B is closest to: a. $89,500 b. $109,600 C. $122,400 d. $128,500 Problem 3 A company with a MARR = 10% is considering the two mutually exclusive options shown below. Neither option has a salvage value Option A Option B Initial Cost $16,000 $23,000 $7,000 $6,000 Annual Benefit Increasing by $600 each year Increasing by 5% each year Life 10 Years 10 Years The Net Present Worth of OPTION A is closest to: a. $40,750 b. $35,120 c. $22,800 d. $15,900
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started