Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
The price of an industrial equipment with a rated capacity of 500 W was $200,000 USD ten years ago
The price of an industrial equipment with a rated capacity of 500 W was $200,000 USD ten years ago. Today we want to estimate the price of a similar item. What would be the best overall estimation technique to utilize in this case? a) If we could investigate the index at the time when the price is known, and the current index value, then the best approach is to use indexes. b) If we can investigate the cost-capacity factor, then the best approach is to use power sizing technique. c) Unit technique would work best in this scenario, since 10 years is a small number. d) Learning Curve is the most appropriate model for this scenario. e) Work Breakdown Structure is the most appropriate model for this scenario. 8) (4 points) The best equation to find Present value in the following Cash Flow Diagram is: i=12% per year month ot 550KD 700KD End of Year a) P = -550(P/F,12%,5)+700(P/A,12%,6)(P/F,12%,6) b) P = 700(F/P,12%,6)+550(A/P,12%,6)(F/P,12%,6) c) P = 550(P/F,12%,5)+700(A/P,12%,6)(P/F,12%,6) d) P = -700(P/F,12%,5)-550(P/A,12%,6)(P/F,12%,6) e) P = -700(F/P, 12%,5)-550(A/P, 12%,6)F/P,12%,6)
Expert Solution
7) Option A
The price of an industrial equipment was $200000 ten years ago. Now we would like to know its current price.
The best method is to use the price index. We can use the index value ten years ago and index value in the current year to estimate the current price of that equipment.
8) Option D
The cash flow in 5th year is a single amount and its present worth can be calculated using following method
-700 * (P/F, 12%, 5)
There is a uniform series of cash flow from year 7th to year 12.
-550 * (P/A, 12%, 6)
Since it has started from the 7th year so we will have to make an adjustment
-550 * (P/A, 12%, 6) * (P/F, 12%, 6)
-700 * (P/F, 12%, 5) - (550 * (P/A, 12%, 6) * (P/F, 12%, 6))
Archived Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
For ready-to-submit work, please order a fresh solution below.





