For the below ME alternatives, which machine shoul be selected based on the AW analysis. MARR=10% First cost, $ Annual cost, $/year Machine A 15000 8,342 Machine B 20,447 6,000 Machine 100 4,
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- Calculate the profitability of the following proposal using Average rate of return (ARR) methodProposal I Automatic machine Cost OMR 420000Estimated life 6.5 yearsEstimated sales P.A OMR 175000Cost : Material OMR 60000Labour OMR 22000Variable overheads OMR 14000 a. 16.53% b. All the options are wrong c. 3.42% d. 4.62%Calculate the profitability of the following proposal using Average rate return (ARR) methodProposal IAutomatic machine Cost OMR 320000Estimated life4.5 yearsEstimated sales P.A 220000Cost : Material OMR 60000 Labour OMR 22000 Variable overheads OMR14000 a.16.53% b.3.19% c.4.62% d.All the options are wrongCalculate the profitability of the following proposal using Average rate of return (ARR) method Proposal I Automatic machine Cost OMR 320000 Estimated life 6.5 years Estimated sales P.A160000 Cost : Material OMR 60000 Labour OMR 22000 Variable overheads OMR 14000 O a. All the options are wrong Оь. 16.53% О С.3.42% O d. 4.62%
- For the following alternatives compute the Delta B/C ratio of Alternative D minus Alternative A. Use 11% as MARR. (Remember for our convention, salvage value is a minus cost.) Project Initial Investment A -1500 -2000 -2500 -5200 Annual Benefit 350 500 600 850 Salvage Value Useful Life 320 610 820 2300 O1.27 1.18 O 1.46 O 1.73 O 0.92QUESTION 3 For the below ME alternatives, which machine should be selected based on the AW analysis. MARR=10% First cost, S Annual cost, $/year Salvage value, $ Life, years Machine A Answer the below questions: B-AW for machine B= First cost, $ Annual cost, $/year Salvage value, $ Life, years 15000 9752 4,000 Machine A Answer the below questions: C-AW for machine C = 15000 Machine B 15892 4,000 22023 QUESTION 4 For the below ME alternatives, which machine should be selected based on the AW analysis. MARR=10%. 6,000 5,000 Machine B 30000 Machine C 6,000 5,000 10000 4,000 1,000 Machine C 11779 4,000 1,000Calculate the profitability of the following proposal using Return an investment method Proposal I Automatic machine Cost 420000 Estimated life 6.5 years Estimated sales p.a 175000 Cost : Material 60000 Labor 22000 Variable overheads 14000 O a. 4.62% O b. 16.53% O c. 3.42% O d. All the options are wrong
- 17. for simple interest FIND THE UNKNOWN QUANTITY FOR EVERY GIVEN CONDITION P = 20,000, r= 12 1/4 %, I = P 1, 200 find F (show your solution submit to classwork) *Problem 3) Given 2 alternatives: ineleviupe erf B First Cost 4,000 1,000 2,000 6,000 500 Annual Cost Annual Benefit Life 2,200 5 10 aed tedt pnit owT dinom e Salvage If i 10%, find the better alternative computing NPW of both alternatives Assume alternative A is replaced at the end of its useful life. 3,000 1,000For the following alternatives compute the Delta B/C ratio of Alternative D minus Alternative A. Use 11% as MARR. (Remember for our convention, salvage value is a minus cost.) Project A B D Initial Investment -1500 -2000 -2500 -5200 Annual Benefit 350 500 600 850 Salvage Value Useful Life 320 610 820 2300 5 6 7 9
- Calculate the profitability of the following proposal using Return on investment method Proposal I Automatic machine Cost 420000 Estimated life 6.5 years Estimated sales p.a 175000 Cost : Material 60000 Labor 22000 Variable overheads 14000 a. 16.53% b. All the options are wrong c. 3.42% d. 4.62%Dixon Construction Materials has collected this information: Based on this Information, what is the EVA for the project? A. $100,000 B. $10,000 C. $450,000 D. ($110,000)6) Data for 2 alternatives are given below. If i = 10%, determine the cost of alternative A so that the 2 alternatives will be equally desirable using BC ratio. Alternatives A B Cost X P3,200 Salvage Value 900 600 Annual Benefit 1150720 Life (years) 8 8