Business, 06.05.2020 08:35 rainyfallaw

Two mutually exclusive projects are being considered:

Project Uno has a first cost of $12,500, creates $5000 in annual savings, and has a salvage value of $2000 at the end of its 4 years useful life.

Project Dos has a first cost of $25,000, creates $8000 in annual savings, and has a salvage value of $4000 at the end of its 8 years useful life.

The MARR is 10% per year. At the end of useful life, both projects can be replaced identically.

Which of the following set of equations will solve for the NPW that allows you to make decision based on NPW analysis.

1.
Uno: PW = -12,500 + 5000(P/A, 10%, 4) + 2000(P/F, 10%, 4)
Dos: PW = [-25,000 + 8000(P/A, 10%, 8) + 4000(P/F, 10%, 8)]/2

2.
Uno: PW = -12,500 + 5000(P/A, 10%, 16) + (2000-12,500)(P/F, 10%, 4) + (2000-12,500)(P/F, 10%, 8) + (2000-12,500)(P/F, 10%, 12) + 2000(P/F, 10%, 16)
Dos: PW = -25,000 + 8000(P/A, 10%, 16) + (4000-25,000)(P/F, 10%, 8) + 4000(P/F, 10%, 16)

3.
Uno: PW = 2[-12,500 + 5000(P/A, 10%, 4) + 2000(P/F, 10%, 4)]
Dos: PW = -25,000 + 8000(P/A, 10%, 8) + 4000(P/F, 10%, 8)

4.
Uno: PW = -12,500 + 5000(P/A, 10%, 4) + 2000(P/F, 10%, 4)
Dos: PW = -25,000 + 8000(P/A, 10%, 4) + (4000/2)(P/F, 10%, 4)

5.
Uno: PW = -12,500 + 5000(P/A, 10%, 4) + 2000(P/F, 10%, 4)
Dos: PW = -25,000 + 8000(P/A, 10%, 8) + 4000(P/F, 10%, 8)

6.
Uno: PW = -12,500 + 5000(P/A, 10%, 8) + 2000(P/F, 10%, 8)
Dos: PW = -25,000 + 8000(P/A, 10%, 8) + 4000(P/F, 10%, 8)

7.
Uno: PW = -12,500 + 5000(P/A, 10%, 8) + (2000-12,500)(P/F, 10%, 4) + 2000(P/F, 10%, 8)
Dos: PW = -25,000 + 8000(P/A, 10%, 8) + 4000(P/F, 10%, 8)

8.
Uno: PW = -12,500 + 5000(P/A, 10%, 4) + 2000(P/F, 10%, 4)
Dos: PW = -25,000 + 8000(P/A, 10%, 4) + 4000(P/F, 10%, 4)

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 08:30

Match the items with the actions necessary to reconcile the bank statement.(there's not just one answer)1. interest credited in bank account2. fee charged by bank for returned check3. checks issued but not deposited4. deposits yet to be crediteda. add to bank statementb. deduct from bank statementc. add to personal statementd. deduct from personal statement

Answers: 2

Answer

Business, 22.06.2019 20:50

1. which one of the following would be an example of a supply-side market failure? a. a gas station is slowly leaking diesel fuel from its underground tanks, and after the leak is discovered, the business immediately cleans up the pollution at its own expense. b. a gas station is slowly leaking diesel fuel from its underground tanks, but the state uses taxpayer money to clean up the pollution rather than requiring the business to pay. c. your business wants to attract repeat customers by putting on a customer-appreciation picnic at a public park, but you decide not to because you couldn't prevent noncustomers from consuming the food and entertainment you provided. d. everyone rushes to the local retail outlet at midnight on the day of the release of a new video game console, and the store runs out before everyone is able to buy one.

Answers: 1

Answer

Business, 22.06.2019 22:00

In which of the following games is it clearly the case that the cooperative outcome of the game is good for the two players and bad for society? a. two oil companies own adjacent oil fields over a common pool of oil, and each company decides whether to drill one well or two wells.b. two airlines dominate air travel between city a and city b, and each airline decides whether to charge a "high" airfare or a "low" airfare on flights between those two cities.c. two superpowers decide whether to build new weapons or to disarm.d. in all of the above cases, the cooperative outcome of the game is good for the two players and bad for society

Answers: 3

Answer

Business, 23.06.2019 02:00

You are considering the purchase of one of two machines used in your manufacturing plant. machine 1 has a life of two years, costs $20,000 initially, and then $4,000 per year in maintenance costs. machine 2 costs $25,000 initially, has a life of three years, and requires $3,500 in annual maintenance costs. either machine must be replaced at the end of its life with an equivalent machine. using eac which is the better machine for the firm

Answers: 1

Answer

You know the right answer?

Two mutually exclusive projects are being considered:

Project Uno has a first cost of $1...

Questions