Texas Southers Lniversity NGT 333 ENGINEERING BOONOMY est 3-Fal1 2014 Name of St

Question

Texas Southers Lniversity NGT 333 ENGINEERING BOONOMY est 3-Fal1 2014 Name of Student 1-6 A transit compary for a small sown has decided so ueerade its small bus fleet because of signiicn cost. Three ahernatives are under s ale. The firm's MARR is 14%the pemaning service life ofthe bus fact is 5 years, and available as follows u are Plan 2 S 12.000$79S 10.00 s 12,000 s 10,000 Initial Cost of Upgrade Annual savings in operating Present Worth (PW) of plan Internal Rate of Return (IRR) 3,580 2.330 3247 290 147 15 percent 19 percen 01. Which of the plans is NOT feasible? A. plan 1 B plan2 C plan3 D.All plans are feasible E No plan is feasible 02. With the information given above, on what basis is fieasibility of a plan decided? A. Initial cost B. Annual savings C. PW D. None of the proceding 03, Based on the IRR figures shown, which plan is the best? C plan 3 D. cannot be detenmined A. plan I B. plan 2 04. What is the annual equivalent for plan 2 to the nearest $1? B. S 124 C. $466 D. cannot be determined A so 05. Based on the data provided, which plan is best? A. plan 1 B. plan 2 Cplan 3 C. plan 3 D. there is no feasible plan If incremental return on investment were to be applied, which plan would be the best? A. plan 1 06. B. plan 2 C. plan 3 D. No feasible plan Page Engt 331 Test 3

Explanation / Answer

Soln:

1) No plan is feasible

2) C :- PW

3) Plan 3

4) 0

5) There is no feasible plan

6) plan 2

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