Category: Uncategorized

If a company has to pay to have a piece of purchased equipment hauled off at the end of a project’s life, the associated cash flow will show as a positive value in an EAW calculation.

Typically, there are two alternatives in a replacement analysis. One alternative is to replace the defender now. The other alternative is which of the following?

$12,000 is invested with an effective interest rate is 6% per year. How much money is in the account after 8 years?

Compute the EAW of medical equipment a profitable hospital is considering buying. The I.E at the hospital has assembled the following data. MARR of 15%. Cash flow Initial cost $100,000 Operating costs /year $50,000 Annual revenue $100,000 Major overhaul at the end of year 5 $40,000 Salvage value $10,000 Useful life 10 years

A cost that stays the same regardless of the level of activities or number of units made is known as

The internal rate of return for the following cash flows is approximately Year Cash Flow 0 -$100,000 1 25,000 2 25,000 3 25,000 4 25,000 5 25,000 6 25,000

I have only one sheet of  handwritten notes  (may be written on front and back). I have shown the camera the front and back of this page. I will not write on this page during the exam.

$12,000 is invested with an effective interest rate is 6% per year. How much money is in the account after 10 years?

Which of the following is the proper value to use as the “first cost” of the defender (existing equipment) in a replacement analysis?

Two bridge designs have been proposed for the new interstate highway to cross Caney Fork river near Carthage, Tennessee A bridge constructed from wood will cost $6000 and will last for eight years. A bridge constructed from steel will cost $11,000 and will last for twenty years. Either bridge will have a zero salvage value at the end of its life. Use an interest rate of 8% and determine whether the increased life of the steel bridge justifies its increased cost. What is the result of the analysis?