Which is the most desirable alternative

Assignment Help Microeconomics

Reference no: EM13180739

Two hazardous environment facilities are being evaluated, with the projected life of each facility being 10 years. The cash flows for each facility are shown in the table below.

The company uses a MARR of 14%. Based on the rate of return, which is the most desirable alternative?

Cash Flows Alternatives

A B

First Cost $450,000 $615,000

M & O Costs $15,000 $10,000

Annual Benefit $85,000 $158,000

Salvage Value $45,000 $65,000

Reference no: EM13180739

Questions Cloud

State the conversion of glucose into lactic acid : the phosphorylation of 2 moles of ADP to ATP and has a deltaG= -135 kJ/mol. What is the deltaG for the conversion of glucose into lactic acid?

Explain what is the molarity of nitric acid in the solution : the density of the solution is 1.41 g/mL at 25 degrees celcius. What is the molarity of nitric acid in this solution?

Determine the rate of return for the thing-a-may-jig project : Fancy Gadgets, Inc. has developed a new Thing-A-May-Jig at a cost of $2,000,000. Projected profits from the sale of Thing-A-May-Jigs for the next five years are: $300,000, $400,000, $500,000, $600,000, and $250,000. At the end of the fifth year, t..

What is the kinetic energy in joules of the baseball : What is the kinetic energy in joules of this baseball when it is thrown by a major-league pitcher at 94.0mph?

Which is the most desirable alternative : Two hazardous environment facilities are being evaluated, with the projected life of each facility being 10 years. The cash flows for each facility are shown in the table below.The company uses a MARR of 14%. Based on the rate of return, which is t..

Find initial cost and net income : Stephen Zehnder, an enterprising engineer, wants to get into business. He is looking at the following two alternatives. He has compiled the cost data for both alternatives as shown in table below. If Stephen wants to have at least a rate of return..

Compute the concentration of cu in a solution : Calculate the concentration of Cu2+ in a solution prepared by adding 4.9×10^?3mol of CuSO4 to 0.480L of 0.35M NH3.

Compute the ph at the equivalence point barbituric acid : Calculate the pH at the equivalence point if 25.00 mL of 0.010 M barbituric acid (HC4H3N2O3) is titrated with 0.20 M NaOH. (Ka barbituric acid = 1.0 x 10^-5).

Compute the ph at the equivalence point barbituric acid : Calculate the pH at the equivalence point if 25.00 mL of 0.010 M barbituric acid (HC4H3N2O3) is titrated with 0.20 M NaOH

User Account

All Pages