Which shows the discounted payback period at an interest rate of 15% for each project for each project?TABLE P5.6Project's Cash Flow ($)nABCᎠ0-$3,800-$5,200-$3,800-$2,80010$2,200-$1,600-$80020$3,800$6,700-$,60030$4,400$6,800$9,4004$12,500$3,600$6,900$8,8003.40, 1.99, 3.92, 3.253.70, 1.99, 3.66, 3.253.70, 2.05, 3.92, 3.253.40, 1.67, 3.18, 2.60

Step 1:Discounted Payback Period:Discounted Payback period takes into account time value of money to…

Answered: Which shows the discounted payback…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Q1) The following figures indicate to cash flows for project (X, Y, Z) respectively. project Z: Project X :r=11% cash flow (CF) project Y: r=11% cash flow (CF) r=11% year cash flow (CF) -999 -342 -10202 1 290 105 1300 310 105 1390 3 315 115 1690 4 810 119 2460 5 820 290 2600 825 390 2890 7 905 420 2989 6.
Determine the net present worth (NPW) of the cash flows given in table below for an investment opportunity being presented to a company. MARR =12% Year 0 1-10 11-15 16-25 26-30 Cash Flow -$100K 10K 20K -5K 30K Group of answer choices $90,030 $80,914 $72,916 $112,200
6.34 The following cash flows represent the potential annual savings associated with two different types of production processes, each of which requires an investment of $12,000: n 0 1 2 3 4 Process A - $12,000 9,120 6,840 4,560 2,280 Process B - $12,000 6,350 6,350 6,350 6,350 Assuming an interest rate of 15%, (a) Determine the equivalent annual savings for each process. (b) Determine the hourly savings for each process if it is in operation 2,000 hours per year. Ans: Process B ($1.0734/hr) (c) Which process should be selected?
For the following interest rate and cash flows what are the NPV and EAUC? Please use excel to answer the question 8.00% (47,500.00) $ (1,750.00) 24 2 (3,000.00) 24 (1,750.00) 4 (3,000.00) 5 32,000.00 for the following interest rates and cash flows what are the NPV& EAUC?
If ε = 11% per year, what is the ERR for the cash flows of this project? Let MARR = 11% per year. 1 2 ΕΟΥ Cash Flow ($) 0 110 80 50 The ERR for the cash flows of this project is %. (Round to two decimal places.) 3 20 4 - 1,820 5 600 ***** 6 480 7 370 8 330 9 190 10 120
Q2) The two projects as part of oil industrial their cash flows in tables belwo: project B: r=8% cash flow (CF) project A:r=8% year cash flow (CF) -398 -242 1 120 105 2 175 105 280 115 Required: a) Find NPV for both project on base of r = 8%? b) Find the required IRR for both project and evaluate them based on this proceuder? Let the required IRR on range (10-20)%? c) Evaluate the mentioned project by using Pl during r=8%? %3D
Question 3 A project with the following costs are under consideration to determine its profitability. Using the IRR comparison, and an annual MARR of 10% compounded semiannually, determine if the project should be executed First cost $45,000 Semiannual operating cost $10,000 Semiannual income $20,000 Salvage value $20,000 Life in years 4 years Oa. IRR = 17% semiannual Ob. IRR= 18.7% semiannual O IRR = 16.9% semiannual Od. IRR 15.3% semiannual
points A project requires an investment of $1,000,000 at year zero, It will pay $100,000 per year forever. What is the present worth of this project? The interest rate is 15% per year Da PW$1,333,333 1 PW 52,333,333 Oc PW-$1,666,667 Od PWS1.333,333
Net present value (NPV) of the project =Single payoff x PVIAF (10.20%, 9 years) - initial outlay = $6,947 x 0.42340 - $2,182 = $759.39 What's the equation for the bolded item?
A project has an investment of $150,000 in year 0 and an additional investment of $20,000 at the end of year Project starts producing net cash inflows of $50,000 end of years years 2-7 (years 2 to years 7? What is the internal rate of return (IRR) of this Project? A 12.00% 13.77% 14.51% 15.00% 21.13%
Find C that makes the two cash flows of Project A & Project B over :5 years to be equivalent Project A Project B $1000 i=10% i=10% $500 0 1 2 3 4 5 0 1 2 3 4 5 $792 O $872 O $972 O $572 O
(a) You are trying to decide the plant size for a new chemical production process. By considering three alternative plant sizes, estimate the minimum plant size to achieve a 14% Discounted Cash Flow rate of return using the data given in TABLE Q2 (When choosing alternative plant sizes, it is suggested to use +50,000 t y') TABLE Q2 Current capital cost of a 100 000 t y1 plant Construction time €160 million 1 Net income Plant life Plant scale factor year 400 € per tonne 5 years 0.67

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