The correct answer I was told is 719 Thanks .oooo Verizon)§(12-11 2:06 AMMA,A, 5

Question

The correct answer I was told is 719 Thanks .oooo Verizon)§(12-11 2:06 AMMA,A, 5 @ O 64%) > + +(S2-S1 )F, i%, 6) Meme (c) 0=-(12-11) FP,i%, 6) (d) 0=-(12-11)+(Y-X)+1(Y+S2)-(X+S1)] D-84 A firm is considering two mutually exclusive alternatives (1-8%): First cost Annual maintenance Annual savings if Alt. Alpha Alt.Omega $10,000 $30,000 2,800 2,000 5,000 6,500 implemented Salvage value Useful life of alternative 2,000 4 years 5,000 8 years If Alt. Alpha will be replaced with a "like alternative" at the end of 4 years, what is the present worth of the incremental cash flows associated with going from an investment in Alpha to an investment in Omega? (a)-$6201 (b) -$5942 (c) -$5028 (d) $852 D-85 Project 1 requires an initial investment on $50.000 and has an internal rate of return (IRR) of 18%, A mutually exclusive alternative, Project 2, requires an investment of S70.000 and has an IRR of 23%. Which of the following statements is true concern- ing the rate of return on the incremental $20,000

Explanation / Answer

Your answer is perfect

See the net cash flows when Alt Alpha is repeated twice

Find the NPV of Omega - Alpha as

NPV = -20000 + 2300(P/A, 8%, 8) + (10000 - 2000)(P/F, 8%, 4) + (5000 - 2000)(P/F, 8%, 8)

= -20000 + 2300*5.74664 + (8000)*0.73503 + 3000*0.54027

= 718.322

EOY Alpha Omega Omega-Alpha 0 -10000 -30000 -20000 1 2200 4500 2300 2 2200 4500 2300 3 2200 4500 2300 4 -5800 4500 10300 5 2200 4500 2300 6 2200 4500 2300 7 2200 4500 2300 8 4200 9500 5300

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.