Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Four different alternative designs as shown in table below are available for a p

ID: 2507225 • Letter: F

Question

Four different alternative designs as shown in table below are available for a public interest project. Determine using the capitalized cost approach which alternative is the most desirable one. MARR =5%

Alternative X

Alternative Y

Alternative Z

Do nothing

Initial Cost

$10M

$28M

$5M

0

Benefit/Year

1M

1.8M

1M

0

Life in Years

15

30

10

0



A.

Alternative Z


B.

Alternative Y


C.

Do nothing


D.

Alternative X


Alternative X

Alternative Y

Alternative Z

Do nothing

Initial Cost

$10M

$28M

$5M

0

Benefit/Year

1M

1.8M

1M

0

Life in Years

15

30

10

0

Explanation / Answer

for Alt x,


NPV = -10000+PV(0.05,15,1,0)


=$380


for Y

NPV = -28000+PV(0.05,30,1.8,0)


= -2,330


for Z,


NPV= -5+PV(0.05,10,,0)


=$2720


so choose alternate Z


ans:A)Alternative Z


Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
Chat Now And Get Quote