5- The incremental NPV approach a. Usually leads to same choices as the NPV approach b. Is typically used when there are concerns regarding spending larger capital c. Is rarely used in practice d. Can only compare between two mutually exclusive projects
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- What is FW of Design A, Design B, and Design C. Which alternative should be chosen. Do not round off in the solution.Mr. Decision is torn between two independent projects A and B. The data below each project are given and the MEAs under each project are also given. Take MARR = 12% for all projects. A. Perform the proper evaluation of all the projects available.B. Recommend the project(s) that can be selected from the list so you can help Mr. Decision to decide.C. Explain the method(s) of evaluation you used including the assumption(s) made.Q7: Engineering Economics. Please (1) Identify the Given (2). Draw a cash flow diagram (3). Show Solution in getting the final answer indicated.
- An analysis tool applicable when the breakeven analysis does not fit the project situation. a. Multiplot O b. Riskplot Ос. Spiderplot O d. WebplotFor this problem, consider the five mutually exclusive investment alternatives, A through E, with incremental analysis. Do nothing is not an alternative. |A C Capital $55,000 $90,000 $45,000 $30,000 $70,000 investment Annual $30,000 $40,000 $25,000 $15,000 $35,000 expenses Annual $50,000 $52,000 $38,000 $29,000 $45,000 revenues Market value at $10,000 $15,000 $10,000 $11,000 $15,000 ΕΟΥ 10 IRR ??? 7.4% 26.7% 46.0% 9.2% Useful Life in 10 |10 10 10 10 years When applying incremental analysis, the base alternative is identified, and then the first incremental comparison should be which of the following? Assume the MARR=10%. Choose the correct answer below. The first letter is the base alternative and the second letter is the next alternative in the analysis. A. D - C В. Е - D C. E - A D. D - B E. D - AYou have been asked to perform an economic evaluation of two projects and recommend one of them for implementation. The project parameters are as follows: Project A Project B Discount Rate 4.0% 4.0% Your analysis concludes that: Project Cost $1,000,000 $750,000 Project Life (yrs) 10 15 Elec. Savings Elec. Cost (kWh/yr) ($/kWh) 800,000 600,000 O Project A is preferable, but Project B also has attractive performance. O Project B is preferable, but Project A also has attractive performance. O Project B is preferable and Project A results in a net loss. O Project A is preferable and Project B results in a net loss. $0.12 $0.12 Annual Cost Escalation Rate 1.5% 1.5%
- solve sub parts b ,c and d early .i upvote definetly but correctly solve b,c and dPLS SHOW THE CASH FLOW OF THE PROBLEM NOT THE CASH FLOW OF THE ANSWER. THANK YOUkuzukuzu12121@outlook.com just sent here I NEED EXCEL FİLE. Determine the NPW, AW, FW and IRR of the following engineering project. Initial Cost ($400,000) The Study Period 15 years Salvage (Market) Value of the project 15% of the initial cost Operating Costs in the first year($9,000) Cost Increase 3% per year Benefits in the first year $40,000 Benefit Increase 9% per year MARR 8% per year Is the Project acceptable? WHY?
- What does the term engineering economic decision refer to in all investment decisions relating to an engineering project?A business owner is comparing between three alternatives (A, B, and C) for their new project. A. Buy a new equipment with an initial cost of $120,000; annual operating cost of $7000; and salvage value of $5000. B. Buy a new equipment with an initial cost of $105,000; annual operating cost of $10500; and salvage value of $7000. C. Continue using the same equipment they already have with an annual operating cost of $25,000. Life of all alternatives is 12 years. With interest at 8% compounded annually, which alternative should the engineer recommend? Use future worth analysis.The ore of a gold mine in the province contains, on average, 0.5 ounce of gold per ton. Method A ofprocessing costs 150Php/ton and recovers 93% of the gold, while Method B costs only 120Php/tonand recovers 81% of the gold. If gold can be sold at 1,200/ounce, which method is better and by howmuch?a. Method A, by 43Phpb. Method A, by 42Phpc. Method B, by 42Phpd. Method B, by 43Php