Assignment:
1.Copmare the following 2 altrernatives using the Present Worth method
|
Alt.
|
Construction cost $
|
Bnefit ($/yr)
|
Service Life (yrs)
|
|
A
|
480,000
|
150,000
|
9
|
|
B
|
550,000
|
250,000
|
9
|
2.Copmare the following 2 altrernatives using the Present Worth method
|
Alt.
|
Construction cost $
|
Bnefit ($/yr)
|
Maintenance $/yr
|
Service Life (yrs)
|
|
A
|
780,000
|
300,000
|
10,000
|
11
|
|
B
|
950,000
|
380,000
|
20,000
|
11
|
3.Copmare the following 2 altrernatives using the Present Worth method
|
Alt.
|
Construction cost $
|
Bnefit ($/yr)
|
Salvage $
|
Service Life (yrs)
|
|
A
|
280,000
|
150,000
|
8,000
|
4
|
|
B
|
560,000
|
250,000
|
8,000
|
8
|
4.Copmare the following 2 altrernatives using the Present Worth method
|
Alt.
|
Construction cost $
|
Benefit ($/yr)
|
Salvage $
|
Service Life (yrs)
|
|
A
|
1,500,000
|
300,000
|
40,000
|
7
|
|
B
|
2,300,000
|
450,000
|
80,000
|
14
|
5.Repeat solution of 4 using the Net Equivalent Uniform Annual method.
6.An investor upon her death wants to leave her $24,000,000 life savings to UTSA to be used for students scholarship support. UTSA makes 5% per year interest in investemtns. What is the amount of annual scholarships possible in pepetutity?
7.Compre the follwoign alternatives using the NEUA worth method.
|
Alt.
|
Construction cost $
|
Life (yrs)
|
|
A
|
$30million
|
40
|
|
B
|
$35million
|
Infinite
|