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Question 8 1 pts Kermit is considering purchasing a new computer system. The purchase price is $129,645. Kermit will borrow onefourth of the purchase price

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Question 8 1 pts Kermit is considering purchasing a new computer system. The purchase price is $129,645. Kermit will borrow onefourth of the purchase price from a bank at 10 percent per year compounded annually. The loan is to be repaid using equal annual payments overa 3year period. The computer system is expected to last 5 years and has a salvage value of $6,474 at that time. Over the Sryear period, Kermit expects to pay a technician $20,000 per year to maintain the system but will save $61,807 per year through increased efciencies. Kermit uses a MARR of 12 percent to evaluate investments. What is the net present worth for this new computer system? Enter your answer in this format: 12345 Question 7 0.25 pts Two mutually exclusive projects are being considered: Project Uno has a first cost of $12,500, creates $5000 in annual savings, and has a salvage value of $2000 at the end of its 4 years useful life. Project Dos has a first cost of $25,000, creates $8000 in annual savings, and has a salvage value of $4000 at the end of its 8 years useful life. The MARR is 10% per year. At the end of useful life, both projects can be replaced identically. Which of the following set of equations will solve for the NPW that allows you to make decision based on NPW analysis. O Uno: PW = -12,500 + 5000(P/A, 10%, 8) + 2000(P/F, 10%, 8) Dos: PW = -25,000 + 8000(P/A, 10%, 8) + 4000(P/F, 10%, 8) O Uno: PW = -12,500 + 5000(P/A, 10%, 4) + 2000(P/F, 10%, 4) Dos: PW = [-25,000 + 8000(P/A, 10%, 8) + 4000(P/F, 10%, 8)1/2 O Uno: PW = -12,500 + 5000(P/A, 10%, 8) + (2000-12,500)(P/F, 10%, 4) + 2000(P/F, 10%, 8) Dos: PW = -25,000 + 8000(P/A, 10%, 8) + 4000(P/F, 10%, 8) O Uno: PW = 2[-12,500 + 5000(P/A, 10%, 4) + 2000(P/F, 10%, 4)] Dos: PW = -25,000 + 8000(P/A, 10%, 8) + 4000(P/F, 10%, 8) O Uno: PW = -12,500 + 5000(P/A, 10%, 16) + (2000-12,500)(P/F, 10%, 4) + (2000-12,500)(P/F, 10%, 8) + (2000-12,500)(P/F, 10%, 12) + 2000(P/F, 10%, 16) Dos: PW = -25,000 + 8000(P/A, 10%, 16) + (4000-25,000)(P/F, 10%, 8) + 4000(P/F, 10%, 16) O Uno: PW = -12,500 + 5000(P/A, 10%, 4) + 2000(P/F, 10%, 4) Dos: PW = -25,000 + 8000(P/A, 10%, 4) + (4000/2) (P/F, 10%, 4) O Uno: PW = -12,500 + 5000(P/A, 10%, 4) + 2000(P/F, 10%, 4) Dos: PW = -25,000 + 8000(P/A, 10%, 8) + 4000(P/F, 10%, 8)\fQuestion 6 0.5 pts Three mutually exclusive projects, Project A, Project B, and Project C, are being considered for investment at a MARR of 10%. The three investments are explained in the table below. Answer the questions that follow the table. Project A Project B Project C Initial Cost $50,000 $40,000 $45,000 Annual O&M $3,500 $4,700 $2,800 Annual Revenues $5,300 $7,400 $8,200 Useful life 2 years 3 years 6 years What is the correct setup for calculating Annual Worth of Project A? How will you use this Annual Worth to calculate NPW for Project A? Use the different drop downs to complete the answers. AW = - 50000 A/P ,10%, 2 v ) + ( 5300 3500 NPW = AW( P/A ,10%, 2

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