Question 6SavedListenBased on the net worth analysis, which of the following projects is acceptable?Assume i = 12%.Project A11,0004000Project B10,0001200원15,5607000Project C10,5006000Project D9500n1-4000|13,50080001235005000-45006000

Based on the net worth analysis, which of the following projects is acceptable? Assume i = 12%. Project A 11,000 4000 13,500 s000 Project B 10,000 2000 15,560 7000 Project C 10,500 6000 3500 5000 Project D 9500 4000 4500 6000 1

Based on the net worth analysis, which of the following projects is acceptable? Assume i = 12%. Project A 11,000 4000 13,500 s000 Project B 10,000 2000 15,560 7000 Project C 10,500 6000 3500 5000 Project D 9500 4000 4500 6000 1

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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I want you to provide me the Cash Flow diagram of the problem. Only cash flow diagram, the solution is already there. Thanks in advance! The annual estimated cash flow is $140,000. The salvage value will be 12% of the initial price after 5 years. The discount rate (r) is 18% Let us assume the initial price of the doughnut machine be X. PV of cash inflows=PV of cash outflows$140,000×PVAF4,18%+.12X×PVF5,18%=X$140,000×2.69006180465+.12X×0.43710921621=X$376,608.652651=X-0.05245310594$376,608.652651=0.94754689406XX=$397,456.479475 The maximum purchase price of the doughnut machine is $397,456.48.
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Two mutually exclusive projects are under consideration: Year Project A Project B -$5,200 -$7,500 1 2,800 1,000 2 2,800 2,500 3 2,800 4,000 4 2,800 5,500 5 2,800 7,000 Which project should be selected if the simple payback method is used to make the determination? Not enough information B; its payback period is longer O A; its payback period is shorter
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A project with uncertainty is under consideration for implementation. The values are shown in the table below. Calculate the Expected Value of the Net Present Worth of this project. n Proba FC Annual Benefit ProbaB 7% ($100,500) ($100,500) ($100,500) ($100,500) ($100,500) ($100,500) $50,000 $22,000 $37,000 $20,000 $5,000 $95,000 8 23% 43% 55% 35% 7% 8. 35% 7% 8 21% 7% 7% 7% 27% 65% 10 75% 10 85% 10 10% 5%