Name: Note: You must show relevant formulae and complete procedural steps to ear

Question

Name: Note: You must show relevant formulae and complete procedural steps to earn full answers in a separate sheet. Reference: Data for questions 1 thru 3 Financial data related to three different alternatives are provided in the table below. Assum replaced at the end of their useful lives. MARR (i)-8% Data Initial Cost Uniform Annual Benefits $650 Salvage Value Useful Life in Years $5,000 $1000 $2,500 S0 $ 350 $5,000 $1,760 $2,000 20 10 1. The EUAC of alternative P is A. $400 B. $450 C. $325 D. $650 2. The EUAW of alternative "Q" is A. $0 B. $49.58 C. $400 D. $234.5 “R" is 3. The EUAC of alternative "R" is A. $626.25 B.285.25 C. $125 D. $234.50 Reference: Data for questions 4 and 5

Explanation / Answer

EUAC for asset initial cost = P (A/P,i%,n)

1.EUAC = 5000(A/P, 8%, 20) - 5000(A/F, 8%, 20) + 650

2.

These two items may be treated separately.

PW(R) = 100 (P/F, 8%, 5)

EUAW(R) = PW(R) (A/P, 8%, 5)

For the salvage value there is a separate factor in the tables, Annual given Future A/F so:

EUAW(S) = 1760 (A/F, 15%, 5)

3. EUAC = 2,500(A/P, 8%, 10) - 2,000(A/F, 8%, 10) + 350

HOPE THIS HELPS YOU.

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