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18 Sep 2018

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2)

Compute the rate of return for the following cash flow.

YEAR CASH FLOW
0 -$700
1 0
2 100
3 200
4 300
5 300

3)

Three mutually exclusive projects are being considered:

A B C
First cost $1000 $2000 $3000
Uniform annual benefit $150 $150 $0
Salvage value $850 $2500 $5200
Useful life 5 years 5 years 5 years

If the MARR = 11%, which project should be selected?

4)

Financial data related to three different alternatives are provided in the table below. Assume that alternatives are replaced at the end of their useful lives. MARR = 8%. The EUAC of alternative P is?

Data P Q R
Initial Cost $5000 $1000 $2500
Uniform Annual Benefits $650 $0 $350
Salvage Value $5000 $1760 $2000
Useful Life in Years 20 5 10

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Sixta Kovacek
Sixta KovacekLv2
19 Sep 2018

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