A new bridge project is being evaluated at i = 10%. Recommend an alternative based on the capitalized cost for each. Construction Cost Annual0&M Life(years) $250,000 $500,000 Concrete Ss0million 70 Steel $40million 50 Solution: 1. Here capitalized cost (CC). 2. CCconcrete= million dollars; 3. CCsteel= million dollars; 4. Choose

A new bridge project is being evaluated at i = 10%. Recommend an alternative based on the capitalized cost for each. Construction Cost Annual0&M Life(years) $250,000 $500,000 Concrete Ss0million 70 Steel $40million 50 Solution: 1. Here capitalized cost (CC). 2. CCconcrete= million dollars; 3. CCsteel= million dollars; 4. Choose

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

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The estimates for a project appear in the following table: Dear optimistic most likely pessimist Fixed cost($) 250,000 250,000 250,000 Annual profit ($) 20,000 15,000 8,000 Shelf life(years) 30 30 30 Residual value($) 000 to. Use the range of values to calculate the heavy average of benefits. b. Using the heavy average, calculate the Equivalent Average Present Value for this project. Use a MARR of 10%. Heavy average annual benefits =$ ; Average Present Value = $
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Econo-Cool air conditioners cost $320 to purchase, result in electricity bills of $154 per year, and last for 5 years. Luxury Air modeis cost $520, resuit in electricity bils of $108 per year, and last for 8 years. The discount rate is 25%. a. What is the equivalent annual cost of the Econo-Cool model? (Do not round intermediate calculations, Round your answers to 2 decimal pleces.) Econo-Cool Equivalent annual cost b. What is the equivalent annual cost of the Luxury Air model? (Do not round intermediete calculations. Round your answers to 2 decimal pleces.) Luxury Air Equivalent annual cost
Answer manually please . I need step by step huhuhu. Thank you a) Using Repeatability: AWA=$______ and AWB=$________ (annual worth) b) Using Co-terminated: AWA=$_________and AWB=________ (annual worth) c) Capitalized Cost: CCA=$_______ and CCB=$__________
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Qutestion 3 Solve this problem using the incremental Benefit - Cost ration with, expected life of 10 years and rate of return of 10% Alternative A Initial cost $50,000 Annual maintenance cost $4,000 Estimated annual benefit $15,000 Alternative B Initial cost $30,000 Annual maintenance cost $3,000 Estimated annual benefit $9,000 a. Select B with B/C=1.14 b. Select B with B/C=1.41 c. Select A with B/C=1.14 d. Reject A with B/C=1.14
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