Eng Eco hw
abdl23
assign3_1.docDRAW ALL CASH FLOW DIAGRAMS
RATE 5% per year for all problems
1. Copmare the following 2 altrernatives using the Present Worth method
|
Alt. |
Construction cost $ |
Bnefit ($/yr) |
Service Life (yrs) |
|
A |
480,000 |
150,000 |
9 |
|
B |
550,000 |
250,000 |
9 |
2. Copmare the following 2 altrernatives using the Present Worth method
|
Alt. |
Construction cost $ |
Bnefit ($/yr) |
Maintenance $/yr |
Service Life (yrs) |
|
A |
780,000 |
300,000 |
10,000 |
11 |
|
B |
950,000 |
380,000 |
20,000 |
11 |
3. Copmare the following 2 altrernatives using the Present Worth method
|
Alt. |
Construction cost $ |
Bnefit ($/yr) |
Salvage $ |
Service Life (yrs) |
|
A |
280,000 |
150,000 |
8,000 |
4 |
|
B |
560,000 |
250,000 |
8,000 |
8 |
4. Copmare the following 2 altrernatives using the Present Worth method
|
Alt. |
Construction cost $ |
Benefit ($/yr) |
Salvage $ |
Service Life (yrs) |
|
A |
1,500,000 |
300,000 |
40,000 |
7 |
|
B |
2,300,000 |
450,000 |
80,000 |
14 |
5. Repeat solution of 4 using the Net Equivalent Uniform Annual method.
6. An investor upon her death wants to leave her $24,000,000 life savings to UTSA to be used for students scholarship support. UTSA makes 5% per year interest in investemtns. What is the amount of annual scholarships possible in pepetutity?
7. Compre the follwoign alternatives using the NEUA worth method.
|
Alt. |
Construction cost $ |
Life (yrs) |
|
A |
$30million |
40 |
|
B |
$35million |
Infinite |
