Six sites have been identified for a parking lot in downtown Blacksbu should be chosen based on the IRR criterion? Click the icon to view the alternatives description. More Info Investment cost (thousands) Annual revenue minus expense (thousands) IRR on total investment $120 $17 14.2% $170 $39.5 23.2% C $280 $52 18.6% Print Done $43 $8 20.
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- 1- Which Project will be selected? 2- please attach your handwritten answer.Determine the capitalized cost of a permanent roadside historical marker that has a first cost of $60,000 and a maintenance cost of $1,900 once every 7 years. Use an interest rate of 12% per year. The capitalized cost is $Six sites have been identified for a parking lot in downtown Blacksburg. Because the sites are plots of land, their salvage value and investment cost are identical. A 10-year study period has been specified, and the MARR is 20% per year. Which site should be chosen based on the IRR criterion? E Click the icon to view the altematives description. Which alternative would you choose as a base one? Choose the correct answer below. More info O A. Alternative C B. Alternative F c. Alternative A *D. Alternative B A B D F O E. Alternative D Investment cost $80 S130 $230 S370 $470 S700 OF. Alternative E (thousands) Annual revenue $13 $35.5 $48 $101.5 $123.5 $153.5 minus expense (thousands) IRR on total investment Analyze the difference between the base altemative and the second-choice alternative IRR A( C )= %. (Round to one decimal place.) 16.2% 27.3% 20.9% 27.4% 26.3% 21.9% - B Print Done
- Six sites have been identified for a parking lot in downtown Blacksburg. Because the sites are plots of land, their salvage value and investment cost are identical. A 10-year study period has been specified, and the MARR is 18% per year.Which site should be chosen based on the IRR criterion?One of two alternatives will be selected to reduce flood damage in a rural community in central Arizona. The estimates associated with each alternative are available. Use B/C analysis at a discount rate of 6% per year over a 20-year study period to determine which alternative should be selected. For analysis purposes only, assume that the benefits of reduced flood damage are available in years 5, 13, and 18 of the study period. Retention Pond Channel Initial Cost, $ 960,000 2,600,000 Annual Maintenance , $/Year 92,000 30,000 Reduced Flood Damage, $ 200,000 550,000 The AB/C ratio is The alternative that should be selected is the retention pond vThe table given below lists the relevant cost items for a specific system purchase. The operating expenses for the new system are $10,000 per year, and the useful life of the system is expected to be five years. The salvage value for depreciation purposes is equal to 25% of the hardware cost. Cost Item Cost Hardware $160,000 Training $15,000 Installation $15,000 a) What is the Book Value (BV) of the device at the end of year three if the Straight Line (SL) depreciation method is used? b) Suppose that after depreciating the device for two years with the SL method, the firm decides to switch to the double declining balance depreciation method for the remainder of the device's life (the remaining three years). What is the device's BV at the end of four years?
- Two landfill construction plans are being considered by a planning committee. They are: 1) Plan A: Landfill with a groundwater protection system. 2) Plan B: Landfill constructed with a geosynthetic liner to minimize leachates from the landfill and protect groundwater sources. Annual amortized capital costs and risks of failure for the systems are presented in the table below: Amortized (yearly) cost Estimated Annual Risk of failure [$] Plan [%] Plan A 400,000 1.50 Plan B 550,000 0.015 The cleanup cost, if the groundwater system should fail, is estimated to be $8,000,000. a) Determine the annual social cost of failure of each of the two plans. 1200 b) Determine to total cost per year for the two plans. c) If minimum total annual cost is the criterion for selecting a option, what plan should be chosen? Clearly justify your choice.A cooling water pumping station at a manufacturing plant in iligan city cost 30,000,000 to construct and it is projected to have 25 year life with an estimated salvage value of 10% of construction cost. Calculate the annual depreciation charge for year 10(d10)using:a.straight line method b.declining balance method c.double declining balance method d.sinking fund at 10% e.sum-of-the-year digit method B.)if the cooling water pumping atation will be book-depreciated to zero over a recovery period of 30 years using the double blance methodIn an energy systems installation, following financial requirement was identified. Capital cost of equipment and installation - $ 150,000 Recurrent cost of maintenance Replacement of parts Life time of the system Income through energy generation i. iii. -$5,000 per year -$4,000 per year - 12 years - $ 22,000 per year Calculate the payback period of the system. If the scarp value of the equipment is $ 5,000, determine is the net profit expected to be collected for the investment? Explain how this profit is affected by "cost of money" or "interest". No calculations needed.
- Two types of power converters are under consideration for a specific application. An economic comparison is to be made using a MARR of 10% and the following cost estimates: Alternative Model A Model B Service Life (Years) 5 10 First Cost $10,000 $20,000 Salvage Value 0 5,000 Annual Operating Cost 2,500 1,200 Draw the Cash Fiow Diagram for each alfernative covering the entire analysis period. Compute the Net Present Worth for Model A? Compute the Net Equivalent Uniform Annual Worth for Model A? Which of these alternatives should be selected?A land grant university has upgraded its Course Management System (CMS), integrating the system throughout all of its main campus and branch campuses around the state. It has purchased a set of 15 servers and peripherals for needs associated with the CMS. The total cost basis is $120,000 and expected use will be 5 years, after which it will have no projected value. Calculate the depreciation deduction and book value for each year. Use straight-line depreciation. Use double declining balance depreciation.A land grant university has upgraded its Course Management System (CMS), integrating the system throughout all of its main campus and branch campuses around the state. It has purchased a set of 15 servers and peripherals for needs associated with the CMS. The total cost basis is $120,000 and expected use will be 5 years, after which it will have no projected value. Calculate the depreciation deduction and book value for each year. Use straight-line depreciation.