4 4) :-\' 41% L) Mon 7:53 PM ndow Help a fiu.blackboard.com 4 out of 4 points Qu

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4 4) :-' 41% L) Mon 7:53 PM ndow Help a fiu.blackboard.com 4 out of 4 points Question 13 What is the present cost of a crane that has an initial cost of $60,000, an annual useful life of 7 years? Assume 1296 interest rate. benefit of $5,000, an annual maintenance cost of $1,500, a salvage value of $8,000 and a 4 out of 4 points Question 14 tf 10% ten the value of P is most nearly 30 4 out of 4 points Question 15 5%. Find the exact incremental ROR value between project M and N below, if both projects have n = 20 years if MARR $80,000 $120,000 First cost Annual Property Tax Annual income 11,000 4 out of 4 points Question 16 s Interest is calculated at 1.25% per month. Therefore, the he la rin48oqual, end of period, monthly payment You barrow $10,000 to purchase a car You have to repay t effective rate of interest per year and effective rate of interest per month 4 out of 4 points Question 17 Find Payback Period with 10%ofthe lnterest of the following project which has salvage value (SV-S100 End-of-year Negative Cash flow 1000 0 Positive Cash flow 0 200 500 Answer (in years) 200 250 400 200, and 600 SV 100 4 out of 4 points Question 18 F1o F7 4

Explanation / Answer

(Question 13)

Net annual benefit ($) = Annual benefit - Annual cost = 5,000 - 1,500 = 3,500

Present worth of costs ($) = 60,000 - 3,500 x P/A(12%, 7)** - 8,000 x P/F(12%, 7)**

= 60,000 - 3,500 x 4.5638 - 8,000 x 0.4523 = 60,000 - 15,973.3 - 3,618.4

= 40,408.3

**Since question asks to compute Present value of costs, we have deducted present values of benefits and salvage value.

(Question 14)

P = 20 x P/F(10%, 2) + 30 x P/F(10%, 3) + 40 x P/F(10%, 4) + 50 x P/F(10%, 5)

= 20 x 0.8264 + 30 x 0.7513 + 40 x 0.683 + 50 x 0.6209 = 16.53 + 22.54 + 27.32 + 31.05

= 97.44

NOTE: As per Chegg answering guideline, first 2 questions are answered.

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