Please if u can’t do them all leave them to someone can do them all. Two solutio
ID: 2821067 • Letter: P
Question
Please if u can’t do them all leave them to someone can do them all. Two solutions are investigated for a safety program Soution 1 First cost--25,000 annual maintenance cost 4,000 Life - 2years Solution 2 First cost-88,000 annual maint 1400 Life 6 years Neither project has a salvage value Compare the two solutions using present value using 15% interest-what is present cost of solution 1 31502 O 73333 93506 O 121890 QUESTION 2 Based on present cost - do we buy the Buick or the Toyota O Buick ToyotaExplanation / Answer
Other parts are already answered
Present Value of 1st solution Year Expenses PVF@15% Pv 0 25000 1 25000 1 4000 0.869565 3478.261 2 4000 0.756144 3024.575 Total 31502.84 Present Value of 2nd solution Year Expenses PVF@15% Pv 0 88000 1 88000 1 1400 0.869565 1217.391 2 1400 0.756144 1058.601 3 1400 0.657516 920.5227 4 1400 0.571753 800.4545 5 1400 0.497177 696.0474 6 1400 0.432328 605.2586 Total 93298.28 Answer 1 :- (a) 31502 Answer 6 :- © 93298 Present cost of Buick Year Expenses PVF@15% Pv 0 Initial cost 22000 1 22000 1 Annual Cost 2000 0.869565 1739.13 2 Annual Cost 2000 0.756144 1512.287 3 Annual Cost 2000 0.657516 1315.032 4 Salvage Value -12000 0.657516 -7890.19 18676.26 Present cost of toyota Year Expenses PVF@15% Pv 0 Initial cost 26000 1 26000 1 Annual Cost 1200 0.869565 1043.478 2 Annual Cost 1200 0.756144 907.3724 3 Annual Cost 1200 0.657516 789.0195 4 Salvage Value -15000 0.657516 -9862.74 18877.13 Answer 2 :- Based on present cost Buick should buy Answer 8 :- Based on present cost option 2 should be selected Present cost of Remote air Year Expenses PVF@14% Pv 0 Initial cost 12000 1 12000 1 Annual Cost 400 0.877193 350.8772 2 Annual Cost 400 0.769468 307.787 3 Annual Cost 400 0.674972 269.9886 4 Annual Cost 400 0.59208 236.8321 13165.48 Present cost of Electric Lines Year Expenses PVF@14% Pv 0 Initial cost 11000 1 11000 1 Annual Cost 800 0.877193 701.7544 2 Annual Cost 800 0.769468 615.574 3 Annual Cost 800 0.674972 539.9772 4 Annual Cost 800 0.59208 473.6642 13330.97 Answer 7 :- Based on present cost Option of solar is choosen