Please Answer My Questions Economics no 3 In 30-35 Minutes as u know from the sub parts A,B,C..... And send u get Answer please thank u 3. A company plans to provide a special parking space for itsemployees. There are 2 alternatives being considered to build theparking lot.The first alternative is relatively simple and only requires an initial costof IDR. 10,000,000, and is estimated to be only 3 years old.Expenditure for maintenance is estimated at IDR 2,000,000 per year.The second alternative is relatively more sophisticated and can makethe parking lot 12 years old and the maintenance costs can be ignored,the initial cost is IDR 30,000,000, it just needs to repaint the parkingsigns every 2 years at a fee of IDR 1,000,000 each time ,-.If the company's MARR is 15%, determine:A. Alternative parking lot development that should be chosen bythe companyB. Perform a sensitivity analysis on the above cost parameters anddetermine the breakeven condition. Explain your answerC. Explain the importance/purpose of a sensitivity analysis andbreak-even point

MARR (minimum acceptable rate of return) is generally assumed as the benchmark rate at which a firm…

Answered: Please Answer My Questions Economics no…

Please Answer My Questions Economics no 3 In 30-35 Minutes as u know from the sub parts A,B,C..... And send u get Answer please thank u

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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Question

Please Answer My Questions Economics no 3 In 30-35 Minutes as u know from the sub parts A,B,C..... And send u get Answer please thank u

3. A company plans to provide a special parking space for its
employees. There are 2 alternatives being considered to build the
parking lot.
The first alternative is relatively simple and only requires an initial cost
of IDR. 10,000,000, and is estimated to be only 3 years old.
Expenditure for maintenance is estimated at IDR 2,000,000 per year.
The second alternative is relatively more sophisticated and can make
the parking lot 12 years old and the maintenance costs can be ignored,
the initial cost is IDR 30,000,000, it just needs to repaint the parking
signs every 2 years at a fee of IDR 1,000,000 each time ,-.
If the company's MARR is 15%, determine:
A. Alternative parking lot development that should be chosen by
the company
B. Perform a sensitivity analysis on the above cost parameters and
determine the breakeven condition. Explain your answer
C. Explain the importance/purpose of a sensitivity analysis and
break-even point

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