Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sow the steps! Alpha Beta Gamma Parameters 1. Initial Cost ($) 240,000 260,000 295,000 2. Revenues ($) 175,000 at EOY1 decreasing by 0.5% annually thereafter.
Sow the steps!
Alpha Beta Gamma Parameters 1. Initial Cost ($) 240,000 260,000 295,000 2. Revenues ($) 175,000 at EOY1 decreasing by 0.5% annually thereafter. 175,000 at EOY1 increasing by 1.0% annually thereafter. 158,000 at EOY1 increasing by $3,000 annually thereafter 90,000 at EOY1 increasing by 1% annually thereafter 3. Operating costs ($) 122,000 at EOY1 decreasing by $1,000 annually thereafter 120,000 at EOY1 to EOY5 inclusively; $110,000 from EOY6 to EOY10 inclusively. 50,000 40,000 -20,000 4. End-of-life salvage value ($) 5. Useful life (years) 5 10 10 All parameter values are fictitious. EOY = End-of-year Industry Standard = 3 years MARR = 10% . All parameter values are fictitious. EOY = End-of-year Industry Standard = 3 years MARR = 10% DISCRETE CASH FLOWS AND DISCRETE COMPOUNDING 10.00 % DISCRETE RATE OF INTEREST i% = 0.1000 k% = 0.1200 n (F/P,i%,n) (P/F,i%,n) (A/P,i%,n) | (PIA,i%,n) | (A/F,i%,n) (F/A,i%,n) (A/G,i%;n) (P/G,i%,n) (F/G,i%,n) 1 1.1000 0.9091 0.8264 0.7513 2 (P/C,i,k,N) ik 0.9091 1.8347 2.7772 3.7367 0.9091 1.7355 2.4869 1.2100 (PIC.I,K,N) i=k 0.9091 1.8182 2.7273 0.0000 1.0000 3.1000 3 4 6.4100 5 3.1699 3.7908 4.3553 1.0000 0.4762 0.3021 0.2155 0.1638 0.1296 0.1054 0.0874 0.0736 1.3310 1.4641 1.6105 1.7716 1.9487 2.1436 2.3579 2.5937 4.7138 1.0000 2.1000 3.3100 4.6410 6.1051 7.7156 9.4872 11.4359 13.5795 0.6830 0.6209 0.5645 0.5132 0.4665 0.4241 0.3855 0.3505 6 0.0000 0.4762 0.9366 1.3812 1.8101 2.2236 2.6216 3.0045 3.3724 3.7255 7 0.0000 0.8264 2.3291 4.3781 6.8618 9.6842 12.7631 16.0287 19.4215 22.8913 26.3963 8 1.1000 0.5762 0.4021 0.3155 0.2638 0.2296 0.2054 0.1874 0.1736 0.1627 0.1540 0.1468 0.1408 0.1357 0.1315 0.1278 0.1247 0.1219 0.1195 0.1175 9 11.0510 17.1561 24.8717 34.3589 45.7948 59.3742 75.3117 10 4.8684 5.3349 5.7590 6.1446 6.4951 6.8137 7.1034 7.3667 7.6061 0.0627 0.0540 11 2.8531 4.0641 12 4.3884 0.0468 0.0408 13 4.6988 15.9374 18.5312 21.3843 24.5227 27.9750 31.7725 35.9497 40.5447 93.8428 115.2271 139.7498 3.6364 4.5455 5.4545 6.3636 7.2727 8.1818 9.0909 10.0000 10.9091 11.8182 12.7273 13.6364 14.5455 15.4545 16.3636 17.2727 18.1818 14 5.7086 6.7215 7.7528 8.8028 9.8719 10.9605 12.0689 13.1974 14.3465 15.5164 16.7076 17.9205 19.1554 20.4128 21.6930 0.0357 3.1384 3.4523 3.7975 4.1772 4.5950 5.0545 5.5599 6.1159 6.7275 29.9012 33.3772 36.8005 40.1520 43.4164 0.3186 0.2897 0.2633 0.2394 0.2176 0.1978 0.1799 0.1635 0.1486 15 0.0315 16 4.9955 5.2789 5.5493 5.8071 6.0526 7.8237 8.0216 8.2014 0.0278 0.0247 167.7248 199.4973 235.4470 275.9917 17 46.5819 18 0.0219 45.5992 49.6395 52.5827 19 6.2861 8.3649 8.5136 0.0195 0.0175 51.1591 57.2750 321.5909 372.7500 20 6.5081 55.4069 5. Alpha's AEW over 20 years (as it was repeated several times). Alpha Beta Gamma Parameters 1. Initial Cost ($) 240,000 260,000 295,000 2. Revenues ($) 175,000 at EOY1 decreasing by 0.5% annually thereafter. 175,000 at EOY1 increasing by 1.0% annually thereafter. 158,000 at EOY1 increasing by $3,000 annually thereafter 90,000 at EOY1 increasing by 1% annually thereafter 3. Operating costs ($) 122,000 at EOY1 decreasing by $1,000 annually thereafter 120,000 at EOY1 to EOY5 inclusively; $110,000 from EOY6 to EOY10 inclusively. 50,000 40,000 -20,000 4. End-of-life salvage value ($) 5. Useful life (years) 5 10 10 All parameter values are fictitious. EOY = End-of-year Industry Standard = 3 years MARR = 10% . All parameter values are fictitious. EOY = End-of-year Industry Standard = 3 years MARR = 10% DISCRETE CASH FLOWS AND DISCRETE COMPOUNDING 10.00 % DISCRETE RATE OF INTEREST i% = 0.1000 k% = 0.1200 n (F/P,i%,n) (P/F,i%,n) (A/P,i%,n) | (PIA,i%,n) | (A/F,i%,n) (F/A,i%,n) (A/G,i%;n) (P/G,i%,n) (F/G,i%,n) 1 1.1000 0.9091 0.8264 0.7513 2 (P/C,i,k,N) ik 0.9091 1.8347 2.7772 3.7367 0.9091 1.7355 2.4869 1.2100 (PIC.I,K,N) i=k 0.9091 1.8182 2.7273 0.0000 1.0000 3.1000 3 4 6.4100 5 3.1699 3.7908 4.3553 1.0000 0.4762 0.3021 0.2155 0.1638 0.1296 0.1054 0.0874 0.0736 1.3310 1.4641 1.6105 1.7716 1.9487 2.1436 2.3579 2.5937 4.7138 1.0000 2.1000 3.3100 4.6410 6.1051 7.7156 9.4872 11.4359 13.5795 0.6830 0.6209 0.5645 0.5132 0.4665 0.4241 0.3855 0.3505 6 0.0000 0.4762 0.9366 1.3812 1.8101 2.2236 2.6216 3.0045 3.3724 3.7255 7 0.0000 0.8264 2.3291 4.3781 6.8618 9.6842 12.7631 16.0287 19.4215 22.8913 26.3963 8 1.1000 0.5762 0.4021 0.3155 0.2638 0.2296 0.2054 0.1874 0.1736 0.1627 0.1540 0.1468 0.1408 0.1357 0.1315 0.1278 0.1247 0.1219 0.1195 0.1175 9 11.0510 17.1561 24.8717 34.3589 45.7948 59.3742 75.3117 10 4.8684 5.3349 5.7590 6.1446 6.4951 6.8137 7.1034 7.3667 7.6061 0.0627 0.0540 11 2.8531 4.0641 12 4.3884 0.0468 0.0408 13 4.6988 15.9374 18.5312 21.3843 24.5227 27.9750 31.7725 35.9497 40.5447 93.8428 115.2271 139.7498 3.6364 4.5455 5.4545 6.3636 7.2727 8.1818 9.0909 10.0000 10.9091 11.8182 12.7273 13.6364 14.5455 15.4545 16.3636 17.2727 18.1818 14 5.7086 6.7215 7.7528 8.8028 9.8719 10.9605 12.0689 13.1974 14.3465 15.5164 16.7076 17.9205 19.1554 20.4128 21.6930 0.0357 3.1384 3.4523 3.7975 4.1772 4.5950 5.0545 5.5599 6.1159 6.7275 29.9012 33.3772 36.8005 40.1520 43.4164 0.3186 0.2897 0.2633 0.2394 0.2176 0.1978 0.1799 0.1635 0.1486 15 0.0315 16 4.9955 5.2789 5.5493 5.8071 6.0526 7.8237 8.0216 8.2014 0.0278 0.0247 167.7248 199.4973 235.4470 275.9917 17 46.5819 18 0.0219 45.5992 49.6395 52.5827 19 6.2861 8.3649 8.5136 0.0195 0.0175 51.1591 57.2750 321.5909 372.7500 20 6.5081 55.4069 5. Alpha's AEW over 20 years (as it was repeated several times)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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