bulldozer is expected to be $10,000 per year, how long would it take to recover

Question

bulldozer is expected to be $10,000 per year, how long would it take to recover the investment at an interest rate of 18% per year? A. 14 years 1 A construction company invests $50,000 in a new bulldozer. If the income from temporary B. 11 years C. 8 years D. 5 years. Alternative I requires an initial investment of $20,000 and will yield a rate of return of 25% per year Alternative ll, which requires a $30,000 initial investment, will yield 20% per year, statements is true about the rate of return on the $10,000 increment? A. It is greater than 20% per year 2. which of the following B. It is exactly 20% per year D. It is less than 20% per year C. It is between 20 and 25% per year Year 1-10 10 Incremental Cash Flow S-20,000 +53,000/yr + $400 The equation(s) that can be used to correctly solve for the inc remental B-C ratio, (BC, is(are): A. 3000 (P/A, MARR, 10 (20000-400 (P/F, MARR, 10) B. 20,000 (F/P, MARR, 10)/(3000(F/A, MARR, 10) +400) C. 20,000 (3000(P/A, MARR, 10) + 400 (P/F, MARR, 10)) D. All of the above. In evaluating three mutually exclusive alternatives by the B/C ratio method, the alternatives were ranked in erms of increasing total equivalent cost (X, Y, and Z respectively), and the following results were obtained n the basis of these results, you should: A. Select X B. Select Z C.Select X and Z D. Must do incremental analysis The rate of return for alternative X is 18% and for alternative Y is 16%, with Y requiring a larger initial investment. If the company has a minimum attractive rate of retum of 16%, A. The company should select the do-nothing alternative B. The company should conduct incremental analysis between X and Y to select the correct alternative C. The company should select alternative X D. The company should select alternative Y How long would it take for money to double itself at a simple interest rate of 10% per year? A. 12 years B. 10 years C. 7 years D. 5 years n engineer deposits $8000 in year 1, $8500 in year 2, and amounts increasing by $500 per year through year 0, At an interest rate of 10% per year, the future worth in year 10 is approximately: $173,400 B. $157,200 C. $98,300 D. $60,600 a compound interest rate of 10% per year, $10,000 next year was equivalent to how much 1 year ago? $8,264 B. $9,091 C. $11,000 D. $12,100 ET331 Finals -page 1

Explanation / Answer

1. A 14 YEARS

PV=-50000

PMT=10000

FV=0

I/Y=18

CPT

N=13.91 OR 14

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