1) A new machine was purchased for $10000 with a life of 4 years and an expected $1500 salvage value. Its annual operating costs were as follows:Year1234Cash flow$8000$8400$8800$9200If the MARR is 10% the ANNUAL equivalent cost of the machine isclosest to: a. $11725 b. $10659 c. $8620 d. $11384 2) The following table gives the net cash flows that each of the mutually exclusive projects (A and B) generate over their useful life of 2 years. At MARR 10% we have to select one alternative.N Project A Project B0 $1200 $20001 $600 $11502 $1000 $1350ROR 19.6% 15.8%Which project is better? a) Project A b) Project B c) Neither project is acceptable d) Not enough information to make a decision 3) Using the rule of 72 how many years will it take to double your investment if the nominal interest rate is 12% compounded continuously? a. 7.20 years b. 5.65 years c. 5.68 years d. 6.00 years 4) Assume that you have the following annual cash flows for which the ROR=10%. Find the missing value for the third cash flowNCash flow0 $12001$2002$10003Xa) $218 b) $283 c) $267 d) $255

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