Based on the incremental return shown and thecompany's MARR of 16% per year, the alternativethat should be selected is _____The project initial costs are such that A < C < B.Comparison Rate of Return, %(A-DN)(B-DN)(C-DN)(B-A)(C-A)(B-C)Alternative CDo nothingAlternative BAlternative ACannot be determined.172519141812

The objective of the question is to determine which alternative should be selected based on the…

Answered: Based on the incremental return shown…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Select the best alternative through internal rate of return analysis. Assume that the minimum attractive rate of return is 10% per year. Machine X |Machine YInitial cost $ 400,000.00 $ 500,000.00Annual operating cost $ 15,000.00 |$ 25,000.00 Annual profit $ 20,000.00 |$ 40,000.00Residual value $ 85,000.00 |$ 100,000.00Project life 15 years | none Engineering Economic Analysis
In decision making process, the most important role of engineering economist is to define feasible alternatives. Select one: True False
The General Hospital is evaluating new office equipment offered by three companies. Cost Annual benefit End of useful life salvage value Useful life (yrs) Select one: 9.5% 8.5% 7.5% Company A $500 $130 $0 10.5% 5 The incremental rate of return between Company B and Company C is close to Company B $600 $115 $250 5 Company C $700 $100 $180 10
MARR = 30% B. -12,000 5,000 2,500 Initial Investment -18,000 Estimated net income per year: 7.000 3,000 Salvage value Estimated competitive life, years (a) Perform incremental ROR analysis (b) Develop the PW vs. i graphs for each alternative and for the increment. (c) Create Choice Table.
Which alternative in the table below should be selected when the MARR =7% per year? The life of each alternative is 10 years. A(A - DN) A(B - A) $700 A(C - B) $1,100 Increment Considered A(D - C) $1.300 A Investment cost A (Annual Revenues less Costs) $800 $140 $108 $161 $130 IRR on A Investment Cost 11.7% 8.8% ? The IRR on A(C - B) is || %. (Round to one decimal place.)
If you are asked to perform an incremental ROR analysis for the two robots listed below, how would you set them up in an incremental cash flow table? WALL-E EVE First cost, $ -40,000 -35,000 Annual operating cost, S per year -1,500 -2,750 Salvage value, $ Life, years 30,000 5 20,500 O Alternative A: WALL-E Alternative B: EVE O The order does not matter. O Alternative A: EVE Alternative B: WALL-E
Seawater contains 2.1 pounds of magnesium per ton. By using the processingmethod A, 85% of the metal can be recovered at a cost of 3.25 per ton of water pumped andprocessed. If process B is used, 70% of the available metal is recovered, at a cost of only 2.60per ton of water pumped and processed. The two processes are substantially equal as toinvestment costs and time requirements. (a) If the extracted metal can be sold for 2.40 perpound, which processing method should be used? (b) At what selling price for the metal wouldbe two processes be equally economical?Answer with complete solution brief explanation. Thank you.
How is identifying and estimating relevant project cash flows perhaps the most challenging aspect of engineering economic analysis?
Following cash flows for alternatives X and Y at an interest rate of 10% per year. Machine X Machine Y -146,000 -220,000 Initial cost, $ AOC, $/year Annual revenue, $/year Salvage value, $ Life, years -15,000 80,000 10,000 3 -10,000 75,000 25,000 6 In comparing the alternatives on a present worth basis, the PW of Machine X is closest to
Compare three alternatives on the basis of their capitalized costs at /= 9% per year and select the best alternative. Alternative E F G $-300,000 $-26,000 $84,000 4 First Cost AOC, per Year Salvage Value Life, Years $-90,000 $-65,000 $34,000 2 The capitalized cost of alternative E is $ The best alternative is (Click to select) alternative F is $ $-1,005,000 $-2,000 $900,000 and alternative G is $
(engineering economic) Four alternatives with cash flows (million rupiah) as follows: Determine the best alternative based on a 12% MARR using the following methods: (a) Rate of Return; (b) Payback Period
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