Harun Al Rasyid_ekotek5

7/27/2019 Harun Al Rasyid_ekotek5

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EKOTEK

Harun Al Rasyid

1206262235

no

5.1 Differences between mutually projects and independent projects:

Mutually Exclusive Alternatives accomplish same things.Therefore, there is only one alternative to be selected

resulting in alternatives competing against each other.

Independent Projects accomplish different things.

Therefore, none of them, one of them, some of them,

or all of them can be selected as there is only "do nothi

alternative to compete against.

5.3 a. Possible alternatives from four independent projects ide

2m

= 24

There are 16 possible alternatives.

b. List of all possibilities

DN, W, X, Y, Z, WX, WY, WZ, XY, XZ, YZ, WXY, WXZ, WYZ,

5.5 Equal Service is a requirement which met when alternatives have same capaicities

5.7 Which one should be selected on a basis of a PW analysis at i = 10% / year?

i 10%

In-house Contract

First Cost (30.00)$ -$

Annual Cost (5.00)$ (2.00)$

Annual Income 14.00$ 3.10$

Salvage Value 2.00$ -$

Life Year 5.00$ 5.00$

Year

0 (30.00)$ -$

1 9.00$ 1.10$

2 9.00$ 1.10$

3 9.00$ 1.10$

4 9.00$ 1.10$

5 11.00$ 1.10$

Present Worth 5.36$ 4.17$

The In-house production should be selected as its revenue is higher


2/18

5.9 i 12%

Material X PV

First Cost (15,000.00)$ (15,000.00)$

Maintenance (9,000.00)$ (32,442.99)$

Salvage 2,000.00$ 1,134.85$Life Year 5

Present Worth (46,308.13)$

The material X should be selected due to its higher Present Worth

Difference between material X and material Y

Value to be more economic alternative is

5.11 i 6%

Plan A PV

First Cost (2,252,000.00)$ (2,252,000.00)$

Annual Cost (126,000.00)$ (1,985,994.44)$

Salvage in 5 years -$ -$

Life Year 50

Present Worth (4,237,994.44)$

The Plan B should be selected due to its higher Present Worth

5.13 i 10%

250 mm Pipe PVFirst Cost (155,000.00)$ (155,000.00)$

Annual Cost (3,000.00)$ (28,280.74)$

Life Year 30


The 250 mm Pipe should be selected due to its higher Present Worth

5.15 i 0.75% / month

GM's Volt PV

First Cost (35,000.00)$ (35,000.00)$Monthly Cost -$ -$

Salvage Value 15,000.00$ 9,748.97$

Life Year 5


The Nissan's Leaf should be selected due to its higher Present Worth

5.17 i 10%


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Year First Cost Present Value Annual Cost

0 (40,000.00)$ (40,000.00)$ -$

1 -$ -$ (9,000.00)$

2 (40,000.00)$ (33,057.85)$ (9,000.00)$

3 -$ -$ (9,000.00)$4 (40,000.00)$ (27,320.54)$ (9,000.00)$

5 -$ -$ (9,000.00)$

6 (40,000.00)$ (22,578.96)$ (9,000.00)$

7 -$ -$ (9,000.00)$

8 -$ -$ (9,000.00)$



0 (80,000.00)$ (80,000.00)$ -$

1 -$ -$ (6,000.00)$

2 -$ -$ (6,000.00)$

3 -$ -$ (6,000.00)$

4 (80,000.00)$ (54,641.08)$ (6,000.00)$

5 -$ -$ (6,000.00)$

6 -$ -$ (6,000.00)$

7 -$ -$ (6,000.00)$

8 -$ -$ (6,000.00)$



0 (130,000.00)$ (130,000.00)$ -$

1 -$ -$ (4,000.00)$

2 -$ -$ (4,000.00)$

3 -$ -$ (4,000.00)$

4 -$ -$ (4,000.00)$

5 -$ -$ (4,000.00)$

6 -$ -$ (4,000.00)$

7 -$ -$ (4,000.00)$8 -$ -$ (4,000.00)$

Salvage 5,598.09$


The Method C should be selected due to its higher Present Worth

5.19 i 10%

Method A

Method B

Method C


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0 (250,000.00)$ (250,000.00)$ -$

1 -$ -$ (60,000.00)$

2 -$ -$ (60,000.00)$

3 (250,000.00)$ (187,828.70)$ (60,000.00)$4 -$ -$ (60,000.00)$

5 -$ -$ (60,000.00)$

6 -$ -$ (60,000.00)$



0 (430,000.00)$ (430,000.00)$ -$

1 -$ -$ (40,000.00)$

2 -$ -$ (40,000.00)$

3 -$ -$ (40,000.00)$

4 -$ -$ (40,000.00)$

5 -$ -$ (40,000.00)$

6 -$ -$ (40,000.00)$


The Machine Y should be selected due to its higher Present Worth

5.21 i 10%


0 (26,000.00)$ (26,000.00)$ -$

1 -$ -$ (5,000.00)$

2 -$ -$ (5,000.00)$

3 (26,000.00)$ (19,534.18)$ (5,000.00)$

4 -$ -$ (5,000.00)$

5 -$ -$ (5,000.00)$

6 -$ -$ (5,000.00)$



0 (83,000.00)$ (83,000.00)$ -$

1 -$ -$ (1,400.00)$

2 -$ -$ (1,400.00)$

3 -$ -$ (3,900.00)$

Plan 1

Plan 2

Machine X

Machine Y


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4 -$ -$ (1,400.00)$

5 -$ -$ (1,400.00)$

6 -$ -$ (3,900.00)$


The Plan 1 should be selected due to its higher Present Worth

5.23 i 8%


0 (130,000.00)$ (130,000.00)$ -$

1 -$ -$ (290.00)$

2 -$ -$ (290.00)$

3 -$ -$ (290.00)$

4 -$ -$ (290.00)$

5 -$ -$ (290.00)$

6 -$ -$ (290.00)$

7 -$ -$ (290.00)$

8 -$ -$ (290.00)$

9 -$ -$ (290.00)$

10 -$ -$ (290.00)$

11 -$ -$ (290.00)$

12 -$ -$ (290.00)$

13 -$ -$ (290.00)$

14 -$ -$ (290.00)$

15 -$ -$ (290.00)$16 -$ -$ (290.00)$

17 -$ -$ (290.00)$

18 -$ -$ (290.00)$

19 -$ -$ (290.00)$

20 -$ -$ (290.00)$

21 -$ -$ (290.00)$

22 -$ -$ (290.00)$

23 -$ -$ (290.00)$

24 -$ -$ (290.00)$

25 -$ -$ (290.00)$

26 -$ -$ (290.00)$27 -$ -$ (290.00)$

28 -$ -$ (290.00)$

29 -$ -$ (290.00)$

30 -$ -$ (290.00)$

31 -$ -$ (290.00)$

32 -$ -$ (290.00)$

33 -$ -$ (290.00)$

34 -$ -$ (290.00)$

Fan X


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35 -$ -$ (290.00)$

36 -$ -$ (290.00)$

37 -$ -$ (290.00)$

38 -$ -$ (290.00)$

39 -$ -$ (290.00)$

40 -$ -$ (290.00)$

41 -$ -$ (290.00)$42 -$ -$ (290.00)$

43 -$ -$ (290.00)$

44 -$ -$ (290.00)$

45 -$ -$ (290.00)$

46 -$ -$ (290.00)$

47 -$ -$ (290.00)$

48 -$ -$ (290.00)$

49 -$ -$ (290.00)$

50 -$ -$ (290.00)$



0 -$ -$ -$

1 -$ -$ (290.00)$

2 -$ -$ (310.00)$

3 -$ -$ (330.00)$

4 -$ -$ (350.00)$

5 -$ -$ (370.00)$

6 -$ -$ (390.00)$7 -$ -$ (410.00)$

8 -$ -$ (430.00)$

9 -$ -$ (450.00)$

10 -$ -$ (470.00)$

11 -$ -$ (490.00)$

12 -$ -$ (510.00)$

13 -$ -$ (530.00)$

14 -$ -$ (550.00)$

15 -$ -$ (570.00)$

16 -$ -$ (590.00)$

17 -$ -$ (610.00)$18 -$ -$ (630.00)$

19 -$ -$ (650.00)$

20 -$ -$ (670.00)$

21 -$ -$ (690.00)$

22 -$ -$ (710.00)$

23 -$ -$ (730.00)$

24 -$ -$ (750.00)$

25 -$ -$ (770.00)$

Fan Y


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26 -$ -$ (790.00)$

27 -$ -$ (810.00)$

28 -$ -$ (830.00)$

29 -$ -$ (850.00)$

30 -$ -$ (870.00)$

31 -$ -$ (890.00)$

32 -$ -$ (910.00)$33 -$ -$ (930.00)$

34 -$ -$ (950.00)$

35 -$ -$ (970.00)$

36 -$ -$ (990.00)$

37 -$ -$ (1,010.00)$

38 -$ -$ (1,030.00)$

39 -$ -$ (1,050.00)$

40 -$ -$ (1,070.00)$

41 -$ -$ (1,090.00)$

42 -$ -$ (1,110.00)$

43 -$ -$ (1,130.00)$

44 -$ -$ (1,150.00)$

45 -$ -$ (1,170.00)$

46 -$ -$ (1,190.00)$

47 -$ -$ (1,210.00)$

48 -$ -$ (1,230.00)$

49 -$ -$ (1,250.00)$

50 -$ -$ (1,270.00)$


Difference between Fan X and Fan Y 127,208.14$

Value to be equivalent economic alternative 127,208.14$

5.25 i 14%

I J K

Life Year (n) 3 4 12

PW over n years 16.07$ 31.12$ (257.46)$

PW over 6 years 26.94$ 15.78$ (653.29)$

PW over 12 years 39.21$ 60.45$ (257.46)$

a. If the alternatives are exclusive the largest Present Worth over 12 years (select Lb. If the projects are independent choose Present Worth 0 (select J)

5.27 i 12%

Year First Cost Future Value Annual Cost

Process T


8/18

0 (750,000.00)$ (1,180,139.52)$ -$

1 -$ -$ (60,000.00)$

2 (750,000.00)$ (940,800.00)$ (60,000.00)$

3 -$ -$ (60,000.00)$

4 -$ -$ (60,000.00)$

Future Worth (2,327,699.20)$


0 (1,350,000.00)$ (2,124,251.14)$ -$

1 -$ -$ (25,000.00)$

2 -$ -$ (115,000.00)$

3 -$ -$ (25,000.00)$

4 -$ -$ (115,000.00)$

Future Worth (2,326,630.34)$

Process that be selected Process T

5.29 i 12%


0 (1,600,000.00)$ (3,961,541.08)$ -$

1 -$ -$ (70,000.00)$

2 -$ -$ (70,000.00)$

3 -$ -$ (70,000.00)$4 (1,600,000.00)$ (2,517,630.98)$ (70,000.00)$

5 -$ -$ (70,000.00)$

6 -$ -$ (70,000.00)$

7 -$ -$ (70,000.00)$

8 -$ -$ (70,000.00)$

Future Worth (6,940,150.58)$


0 (2,100,000.00)$ (5,199,522.67)$ -$1 -$ -$ (50,000.00)$

2 -$ -$ (53,000.00)$

3 -$ -$ (56,000.00)$

4 -$ -$ (59,000.00)$

5 -$ -$ (62,000.00)$

6 -$ -$ (65,000.00)$

7 -$ -$ (68,000.00)$

8 -$ -$ (71,000.00)$

Process W

System K

System L


9/18

Future Worth (5,921,999.66)$

Process that be selected System K

5.31 i 8%

Year Cash Flow

0 (100,000.00)$

1 (100,000.00)$

2 (100,000.00)$

3 (100,000.00)$

4 (100,000.00)$

5 (100,000.00)$

(100,000.00)$

Capitalised Cost

Annual Cost (100,000.00)$

Capitalised Cost (1,350,000.00)$

5.33 i 12%

PV (300,000.00)$

A (35,000.00)$

FV (75,000.00)$

Capitalised Cost

Annual Cost (11,805.73)$

Capitalised Cost 1 (300,000.00)$Capitalised Cost 2 (291,666.67)$

Capitalised Cost 3 (98,381.08)$

Total Capitalises Cost (690,047.75)$

5.35 i 10%

Alternative M Alternative N

First Cost (150,000.00)$ (800,000.00)$

Annual Cost (50,000.00)$ (12,000.00)$

Salvage Value 8,000.00$ 1,000,000.00$

n 5

Comparing the alternatives on a basis of capitalised cost

Present Value 1 (150,000.00)$ (800,000.00)$

Present Value 2 (189,539.34)$ (120,000.00)$

Present Value 3 4,967.37$ -$

Present Value total (334,571.97)$ (920,000.00)$


10/18

Alternative M is selected

5.37 i 8%

n 12.00$

Annual (40,000.00)$

Capitalised Cost

Annual Worth (8,507.80)$Capitalised Cost (106,347.51)$


11/18


12/18

Material Y PV

(35,000.00)$ (35,000.00)$

(7,000.00)$ (25,233.43)$

20,000.00$ 11,348.54$5

(48,884.90)$

(2,576.76)$

(30,000.00)$

Plan B PV

(3,462,120.00)$ (3,462,120.00)$

-$ -$

500,000.00$ 373,629.09$

50

(3,088,490.91)$

300 mm Pipe PV(210,000.00)$ (210,000.00)$

-$ -$

30

(210,000.00)$

Nissan's Leaf PV

(1,500.00)$ (1,500.00)$(349.00)$ (16,812.51)$

-$ -$

5

(18,312.51)$


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Present Value

-$

(8,181.82)$

(7,438.02)$

(6,761.83)$(6,147.12)$

(5,588.29)$

(5,080.27)$

(4,618.42)$

(4,198.57)$

Present Value

-$

(5,454.55)$

(4,958.68)$

(4,507.89)$

(4,098.08)$

(3,725.53)$

(3,386.84)$

(3,078.95)$

(2,799.04)$

Present Value

-$

(3,636.36)$

(3,305.79)$

(3,005.26)$

(2,732.05)$

(2,483.69)$

(2,257.90)$

(2,052.63)$(1,866.03)$


14/18

Present Value Salvage Present Value

-$ -$ $0.00

(54,545.45)$ -$ $0.00

(49,586.78)$ -$ $0.00

(45,078.89)$ 70,000.00$ $52,592.04(40,980.81)$ -$ $0.00

(37,255.28)$ -$ $0.00

(33,868.44)$ 70,000.00$ $39,513.18

Present Value Salvage Present Value

-$ -$ -$

(36,363.64)$ -$ -$

(33,057.85)$ -$ -$

(30,052.59)$ -$ -$

(27,320.54)$ -$ -$

(24,836.85)$ -$ -$

(22,578.96)$ 95,000.00$ 53,625.02$

Present Value

-$

(4,545.45)$

(4,132.23)$

(3,756.57)$

(3,415.07)$

(3,104.61)$

(2,822.37)$

Present Value

-$

(1,272.73)$

(1,157.02)$

(2,930.13)$


15/18

(956.22)$

(869.29)$

(2,201.45)$

Present Value

-$

(268.52)$

(248.63)$

(230.21)$

(213.16)$

(197.37)$

(182.75)$

(169.21)$

(156.68)$

(145.07)$

(134.33)$

(124.38)$

(115.16)$

(106.63)$

(98.73)$

(91.42)$(84.65)$

(78.38)$

(72.57)$

(67.20)$

(62.22)$

(57.61)$

(53.34)$

(49.39)$

(45.73)$

(42.35)$

(39.21)$(36.30)$

(33.61)$

(31.12)$

(28.82)$

(26.68)$

(24.71)$

(22.88)$

(21.18)$


16/18

(19.61)$

(18.16)$

(16.82)$

(15.57)$

(14.42)$

(13.35)$

(12.36)$(11.44)$

(10.60)$

(9.81)$

(9.09)$

(8.41)$

(7.79)$

(7.21)$

(6.68)$

(6.18)$

Present Value

-$

(268.52)$

(265.78)$

(261.96)$

(257.26)$

(251.82)$

(245.77)$(239.23)$

(232.32)$

(225.11)$

(217.70)$

(210.15)$

(202.53)$

(194.88)$

(187.25)$

(179.69)$

(172.22)$

(164.86)$(157.66)$

(150.61)$

(143.75)$

(137.07)$

(130.60)$

(124.33)$

(118.27)$

(112.43)$


17/18

(106.81)$

(101.40)$

(96.21)$

(91.23)$

(86.46)$

(81.89)$

(77.53)$(73.37)$

(69.39)$

(65.61)$

(62.00)$

(58.57)$

(55.30)$

(52.20)$

(49.25)$

(46.46)$

(43.81)$

(41.29)$

(38.91)$

(36.65)$

(34.52)$

(32.50)$

(30.59)$

(28.78)$

(27.08)$

L

6

140.46$

140.46$

204.46$

) 204.46Alt I 39.21

Alt J 60.45

Alt L 204.46

Future Value


18/18

-$

(84,295.68)$

(75,264.00)$

(67,200.00)$

(60,000.00)$

Future Value

-$

(35,123.20)$

(144,256.00)$

(28,000.00)$

(115,000.00)$

Future Value

-$

(154,747.70)$

(138,167.59)$

(123,363.92)$(110,146.36)$

(98,344.96)$

(87,808.00)$

(78,400.00)$

(70,000.00)$

Future Value

-$(110,534.07)$

(104,612.60)$

(98,691.13)$

(92,837.64)$

(87,105.54)$

(81,536.00)$

(76,160.00)$

(71,000.00)$

Harun Al Rasyid_ekotek5

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