Hello I am in an economical analysis in the workplace class and I need this solv

Question

Hello I am in an economical analysis in the workplace class and I need this solved using the factor method for future worth all by hand please. I ALSO NEED a cash flow timeline diagram for this please!

9-51 Consider three alternatives: First cost Uniform annual $50 $150 110 45 30 45 benefit Useful life, in years*3 * At the end of its useful life, an identical alternative (with the same cost, benefits, and useful life) may be installed. All the alternatives have no salvage value. If the MARR is 10%, which alternative should be selected? (a) Solve the problem by payback period. (b) Solve the problem by future worth analysis. (c) Solve the problem by benefit-cost ratio analysis. (d) If the answers in parts (a), (b), and (c) differ explain why this is the case.

Explanation / Answer

A B C Initial Cost -50 -150 -110 Annual Benefit 30 45 45 Expected life 3 9 6 (a) Pay back Period (years) 50/30 150/45 110/45           1.67           3.33           2.44 (b ) Future Worth Analysis Annual Benefit 30 45 45 Future Worth Factor 3.31 13.57948 7.71561 F.w of Annual Benefit         99.30      611.08      347.20 Initial Outflow -50 -150 -110 Future Worth Factor 1.331 2.357948 1.771561 FW of Initial outflow      (66.55)    (353.69)    (194.87) FW of net inflow         32.75      257.38      152.33 Calculation of Future worth Factor FV = ((((1+R)^N) - 1) / R) FV = ((((1+10%)^3) - 1) /10%) FV =((((1+10%)^9) - 1) /10%) FV =((((1+10%)^6) - 1) /10%) R 10% 10% 10% N 3 9 6 Future worth nth year FV=(1+r)^n 1.331 2.357948 1.771561 ( C) Cost Benefit Analysis Annual Benefit 30 45 45 Disc factor Factor 2.486852 4.355261 6.144567 PVof Annual Benefit         74.61      195.99      276.51 Initial Outflow -50 -150 -110 Cost Bebefit Analysis PV/Initial cost           1.49           1.31           2.51 Calculation of Discount factor year 1/(1+.10)^n 1 0.909091 2 0.826446 3 0.751315 2.486852 4 0.683013 5 0.620921 6 0.564474 4.355261 7 0.513158 8 0.466507 9 0.424098 10 0.385543 6.144567 (d) yes, in all the three cases anwser is different ,In the payback method it concentrate that how early project recives its investment, however in Fw analysis it see what is the future value of the project and in the case of cost benefit analysis concentare of to find out how many times present value of the inflow of the investment

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