BCN3753 Florida International Financial Management of Construction Organizations Project The attached below assignment is for extra credit. In order to get

BCN3753 Florida International Financial Management of Construction Organizations Project The attached below assignment is for extra credit. In order to get full points all work must be shown and neat. Florida International University
BCN3753- Financial Management of Construction Organization
Assignment #1+
Fall 2019
Assignment #1+
Hand-Out Date: Oct, 1st, 2019
Due Date: Oct, 10th, 2019 (11:59 pm)
Question 1 (5 points)
Your company has been studying whether to purchase a new equipment or not, and has gathered
the following information:
Optimistic
Initial cost
Most Likely
Pessimistic
$100,000
$115,000
$125,000
Annual O&M cost
$5,500
$6,000
$8,000
Net annual benefit
$20,000
$18,000
$16,000
Salvage value
$35,000
$32,000
$30,000
Given the useful life of the equipment is 10 years, and the MARR = 5%, using rate-of-return
analysis to determine whether to purchase the equipment or not.
Assignment #1+
Page 1 of 2
Florida International University
BCN3753- Financial Management of Construction Organization
Assignment #1+
Fall 2019
Question 2 (5 points)
Your company has been studying whether to purchase a new equipment or not, and has gathered
the following information:
Net annual
benefit
$15,000
$12,000
$10,000
Probability
0.2
0.5
0.3
Useful life
9
12
Probability
0.60
0.40
Given the cost of the equipment is $220,000, and the salvage value after 9 years is 30% of the
initial cost, and the salvage value after 12 years is 20% of the initial cost. If the MARR = 4%,
find out the expected net present worth of the equipment.
Assignment #1+
Page 2 of 2

Purchase answer to see full
attachment

Don't use plagiarized sources. Get Your Custom Essay on
BCN3753 Florida International Financial Management of Construction Organizations Project The attached below assignment is for extra credit. In order to get
Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT! To Get a 10% Discount Use Coupon Code FIRST39420
Order Essay
Calculator

Calculate the price of your paper

Total price:$26
Our features

We've got everything to become your favourite writing service

Need a better grade?
We've got you covered.

Order your paper