6True/False Problems) a.The capitalized cost of any investment may be determined

Question

6True/False Problems) a.The capitalized cost of any investment may be determined using the equation P Ai where Pis the capitalized cost, A s the annual amount and i is the interest rate. True / False b.The equivalent uniform annual worth (EUA W) may be determined from net present worth from the equation, EUAW- PW (A/P, i, n). True/ False c. MARR is minimum attractive rate of return. True/False d. Given: Financial data for three alternatives A B C Initial cost $600 $1,200 $400 EUAB Life RoR | 6.1% | 10.1% | 11.7% 82 196 7 10 Years 20% MARR-8% RoR (B-C):: 9.290 The most attractive alternative for a MARR of 8% is Alt, C. True / False

Explanation / Answer

Answers:

For example, (P/A, 5%, n = infinity) = 1/0.05 = 20.

2. False. The correct equation is EUAC = (A/P, I, n) where, A/P = annualized cash flow or payment, I = annual interest rate, n = service life.

3. False. MARR IS minimum acceptable rate of return.

4. False is the correct answer.

Related Questions

Navigate

• Browse (All)
• Browse 6
• Subjects

---

---

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