Which alternative should select use present worth analysis

Assignment Help Econometrics

Reference no: EM13220870

A firm is considering three mutually exclusive alternatives as part of a production improvement program. The alternatives are, Alternatives Cash flow A B C Installed cost $12,250 $14,000 $16,500 Uniform annual Benefit $ 2,750 $ 2,700 $ 2,950 Salvage value $ 1,500 $ 2,500 $ 5,500 Useful life in Years 8 12 12 Due to the unknown rate of technology transfer, the project life of the improvement program is unknown. The firm has a MARR of 15.0%. Use net present worth analysis to determine which alternative should it select?

Reference no: EM13220870

Questions Cloud

What communication model best describes his dance approach : Clampitt presented a communication model for his first 2 approaches to communication as related to managers; Arrow & Circuit. What communication model best describes his Dance Approach? Why? (Must be 200 words)

Determine determine which pump should be selected : A large processing plant is trying to decide between two air scrubbing units. The unit is required by clean air regulations and will be replaced by an identical unit of itself at the end of its useful life into the foreseeable future.

Identify leadership styles associated with path-goal theory : Identify four leadership styles associated with path-goal theory. Explain each style and relate it to styles described in other theories. Can leaders exhibit more than one style?

Compute total heat needed to convert : calculate total heat in (J) needed to convert 0.333 mol of gaseous ethanol at 300 degress celsius and 1 atm to liquid ethanol at 25 degress celsius and 1 atm

Which alternative should select use present worth analysis : The alternatives are, Alternatives Cash flow A B C Installed cost $12,250 $14,000 $16,500 Uniform annual Benefit $ 2,750 $ 2,700 $ 2,950 Salvage value $ 1,500 $ 2,500 $ 5,500 Useful life in Years 8 12 12 Due to the unknown rate of technology trans..

Why is it important to continuously update implementation : Why is it important to continuously update the implementation and communication of a strategic plan? Who should be responsible for updating and communicating a strategic plan? Why?

Explain mixture of potassium nitrate and charcoal : Crude gunpowders often contain a mixture of potassium nitrate and charcoal (carbon). When such a mixture is heated until reaction occurs, a solid residue of potassium carbonate is produced.

Define the unbalanced equation for the process : If electricity of sufficient voltage is passed into a solution of potassium iodide in water, a reaction takes place in which elemental hydrogen gas and elemental iodine are produced, leaving a solution of potassium hydroxide.

Discuss the role they play in computer crime : Discussing the role they play in computer crime. Be sure to research and document cases to support each law and your discussion

User Account

All Pages