The General Hospital is evaluating new office equipment offered by three companies. Cost Annual benefit End of useful life salvage value Useful life (yrs) Company A $500 $130 $0 Select one: 14.0 9.0 19.0 24.0 5 Company B $600 $115 $250 5 Company C $700 $100 $180 12 The incremental rate of return between Company B and Company C is close to (%)
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- The Royal Victoria Hospital is evaluating new office equipment offered by three companies. Company A Company B Company C Cost $500 $600 $700 Annual benefit 130 115 100 End of useful life salvage value 0 250 180 Useful life (yrs) 5 10 15 The incremental rate of return between Company A and Company B is close to: Select one: a. 30% b. 25% c. 9.5% d. 8.5%Question 4: The General Hospital is evaluating new office equipment offered by three companies. Company Company B Company C A $15,000 1,600 8,000 3,000 First Cost Maintenance and operating costs Annual benefit Salvage value $25,000 400 13,000 6,000 $20,000 900 11,000 4,500 In each case the interest rate is 20% and the useful life of the equipment is 4 years. Use NPW analysis to determine the company from which you should purchase the equipment. ANSWER: Company A: $3,015; Company B: $10,514; Company C: $8,319. Choose B.A company is considering two types of equipment with the following informations. Using benefit - cost ratio which equipment must be adopted if money is worth 10% per annum. Туре А P5,000.00 1,250.00 1,080.00- 2,380.00 Туре В MP11,750.00 3,750.00 1,130.00 3,880.00 First Cost Salvage Value Annual Maintenance Cost Annual Benefits Life, years 12 G00.02.
- PART I Brave Heart Hospital showed the following major hospital costs at various levels of activity for CY 2020: Month Hospital Admission Major Hospital Cost(P) February 1,300 P850,000.00 March 8,500 P1,350,000.00 April 1,600 P1,150,000.00 May 1,400 P950,000.00 June 1,200 P800,000.00 July 200 P50,000.00 August 1,650 P1,200,000.00 September 1,550 P1,050,000.00 The breakdown of the major hospital costs in the month of May at 1,400 hospital admission is as follows: Accommodation Expense (Variable) P400,000.00 Utilities (Fixed) P300,000.00 Medicine (Mixed) P250,000.00 Total Overhead Cost P950,000.00 Requirements: 1. Determine how much of major hospital cost for the month of August of P1,200,000.00 consisted of medicine cost 2. Using high-low method, determine the cost function for Medicine 3. Using high-low method, determine the cost function for major hospital cost 4. What would be the total major hospital cost if hospital admission is at 2,000?Tuo (enstraction pavement Hhe first one costs 55.111048x18 pavement the first one costs 55. c46x18 oud luhich uill be used for 20 years The second cne Costs 6b.83906x10s ahich will be used for 30 years. The in terest rate is 89o luhich pavement to useA library shelving system has a first cost of $20,000 and a useful life of 10 years. The annual maintenance is expected to be $2,500. The annual benefits to the library staff are expected to be $9,000. If the effective annual interest rate is 10 percent, what is the benefit/cost ratio of the shelving system? Select one: a. 2.24 b. 1.73 с. 1.56 d. 1.51
- Two alternatives are being considered for a certain project. B $15,000 $3,800 Initial Cost Uniform annual benefits Useful life A $10,000 $2,500 O a. 1.37 O b. 1.27 O c. 1.07 O d. 1.17 6 6 If money is worth 12% annually, compute the benefit ratio of the difference between the alternatives.Benefit-Cost Ratio questions please use 2 decimal places. Question 1 You are trying to decide which 2 devices to install. The following are the details for the devices with a useful life of 5 years. Your MARR is 10%. What is the Benefit-Cost Ratio of Device 1?: Device 1 Device 2 Device 3 Initial Cost $110,000 $200,000 $150,000 Salvage Value $10,000 $30,000 $20,000 O&M Costs $5,000 $2,000 $6,000 Annual Benefits $35,000 $40,000 $35,00 Year 1, increasing $5,000 each subsequent yearThree alternatives have the following cost data associated with them: Data Alt. 1 Alt. 2 Alt. 3 Useful Life, Years 10 10 10 First Cost $1,325,000 $1,980,000 $1,650,000 Annual Benefit 265,000 589,000 435,000 Annual M&O Costs 95,000 97,000 91,000 Annual M&O Gradient 2,300 2,100 1,980 Salvage Value 145,000 205,000 178,000 Loan Payment 150,946 225,565 187,971 The loan payments are calculated using an interest rate of 10%, a life equal to the life of the machine, and a down payment of 30%. Use a MARR of 12% and determine which machine, if any, should be purchased. Use incremental analysis.
- Two machines X and Y below are being considered for purchase. Machine X Machine Y 1200 300 200 Initial Cost Uniform annual benefit Salvage value Life, year 100 150 160 3 6 Find the exact incremental Rate of Retum? O 7.7%Determine which of the following three alternatives is most efficient and which one is more profitable using the incremental benefit/cost method. The rate is 5% per year. Alter. Construction cost $ Annual Salvage $ Life (yrs) Benefits $/yr A $450,000 $1,100,000 $750,000 $320,000 $360,000 $330,000 $40,000 $100,000 -20,000 10 15 13Two alternative means of providing engineering drafting services are under consideration. Handy-Cam R-tistry $200,000 $120/hr $250/hr $20,000 $250,000 $115/hr Purchase Price Operating Cost $250/hr $15,000 Revenue Market value (end of useful life) Useful life 6 years б уears It is anticipated that the chosen alternative wilI be used to generate revenue 8 hrs/day, 250 days per year. The company uses a MARR = 12% for all investments. 12% Interest Table ,