A tire manufacturing plant is considering alternatives A and B for production. A minimum attractive rate of return (MARR) of 8% is desired. Considering the following, which alternative should be selected?
Year : 0 1 2 3 4 5
Option A : −Rs. 350, +Rs. 110, +Rs. 110, +Rs. 110, +Rs. 110, +Rs. 110
Option B : −Rs. 175, +Rs. 65, +Rs. 65, +Rs. 65, +Rs. 65, +Rs. 65

Two alternatives for a construction project are being considered. Both projects have a 5-year life. Alternative A initially costs is Rs. 2,260 and yields Rs. 355 annually for 5 years. Alternative B initially costs Rs. 5,500 and yields Rs. 1,250 annually for 5 years. The rate of return on the difference between the alternatives is approximately

Four mutually exclusive investment alternatives A, B, C and D have a 5-year useful life and no salvage value. The MARR is 6%. Which Investment should be selected?
Initial Cost : Rs. 400(A), Rs. 125(B), Rs. 225(C), Rs. 500(D)
Uniform Annual Benefit : Rs. 100(A), Rs. 35(B), Rs. 50(C), Rs. 135(D)

A project has an initial cost of Rs. 100,000 and uniform annual benefits of Rs. 12,500. At the end of its 8-year useful life, its salvage value is Rs. 30,000. At a 10% interest rate, the net present worth of the project is approximately

The amount of money deposited 25 years ago at 5% interest that would now provide a perpetual payment of Rs. 15,000 per year is closest to

Your grandfather deposits Rs. 50,000 into your savings account that pays 6% interest compounded quarterly. Equal annual withdrawals are to be made from the account beginning 1 year from now and continuing forever. The maximum amount of equal annual withdrawals is approximately

The amount of money deposited 10 years ago at 8% interest that would now provide a perpetual payment of Rs. 15,000 per year is approximately

Machine A has an initial cost of Rs. 6,000 with total annual maintenance costs of Rs. 750. Machine B has an initial cost of Rs. 8,500 with total annual maintenance costs of Rs. 405. At a 10% interest rate, in approximately how many years do the two machines have the same present worth?

You borrow Rs. 10,000 from your parents at an interest rate of 12% compounded monthly. You agree to pay your parents Rs. 300 per month. Approximately how long will it take for you to pay off your loan assuming that you pay exactly Rs. 300 per month?

Two alternatives A and B have the following cash flows.
Year : 0 1 2 3 4
Option A : −Rs. 1,500, +Rs. 600, +Rs. 600, +Rs. 600, +Rs. 600
Option B : −Rs. 2,700, +Rs. 100, +Rs. 100, +Rs. 100, +Rs. 100
At a 6% interest rate, which alternative should be selected?