Suppose you are Charge of procurement sheating system för factory building. Option A is quoted as an economic product with an initial price tag of 78,000 $. On the other hand Option B is a more efficient product with a higher price tag of 95,000 $. It is also estimated that the operating of Option B will be roughly 300 $ less per month on average. The company quoting these products claim that the price difference will be paid off in 5 years. Do your own NPV or ROI analysis and see if this claim is true or not. Hint: take annual inflation rate as 12% on average.
Q: A certain equipment costs P7,000 has an economic life of n years and a salvage value P350 at the end…
A: Given: The Cost of equipment is = P7,000 Economic life = n years Salvage value is = P350 Book value…
Q: With the given information please calculate NPV, NPW, EUAW, and IRR for each alternative. The…
A: Three alternatives are given: Alternatives 1 2 3 Initial Cost (P/A) $4,150,000 $4,698,438…
Q: will lose $1,200 each year for the first four years. An additional $8,000 is invested in the company…
A: here we calculate the NPV value of the project which are as follow-
Q: installation of a heating system for a Suppose you are in charge of the procurement factory…
A: According to the question, Option B costs $17.000 more than Option A Initially. To check whatever…
Q: A construction firm is considering establishingan engineering computing center. The center will…
A: Given, cost of 3 engineering workstations= $45000 each. Service life =5 years Expected salvage…
Q: Demand and supply in a market are described by the equations Qd=66-3P Qs Os =-4+2P
A: Demand, Qd = 66 – 3P Supply, Qs = -4 + 2P
Q: Sonar warning devices are being purchased by the St. James department store chain to help trucks…
A: Current $ MARR = 18% Inflation is expected = 6%
Q: A supermarket chain buys loaves of bread from its supplier at $0.50 per loaf. The chain is…
A: Let annual break even for machine B be n units. Then EUAC of machine B = 0.5 × n
Q: A company is planning to install a new automated plastic- molding press. Two different presses are…
A: Given Data, Producing = 120,000 units per year. Non defective units are sold for $0.345/unit.…
Q: If the appropriate discount rate for this project is 14%, then the net present value (NPV) is…
A: Given interest rate = 14% Present value of each cash flow = cashflow /(1 + rate)^time For year 0 =…
Q: occupancy rate is expected to be 90% at all time. He desires a ROR of 20% in his investment. Other…
A: In economics, depreciation is a measure of how much value an asset loses as a result of external…
Q: Your firm has purchased an injection molding machine at a cost of $100,000. The machine's useful…
A: The given information: Annual capital cost is $25,455 Number of operational years is 8 Machine cost…
Q: Use i-9% to find the total EUAC of Plan A which has a total investment of $200,000. Out of this,…
A: Interest Rate = 9% total invstment = 200,000 (Land = 1,20,000, & Building = 80,000) Building…
Q: A company decides to automate a process that will require installing a machine that costs BD8,000…
A:
Q: 9. Electric posts and transmission lines must be installed in a new industrial park. It has been…
A: Length of transmission line = 23 km or 23000 meters The cost of each kilometre line = P14000 Pole…
Q: Halloween, Inc., is considering a new product launch. The firm expects to have an annual operating…
A: Given; Annual cash flow= $9.6 million Initial cost= $39.6 million Salvage value= 0 Life= 9 year…
Q: A local listed company in the construction sector, but internationally known company, has issued…
A:
Q: 10 An advertising campaign will cost $500,000 for planning and $50,000 in each of the next five…
A: Initial cost = $500,000 $50,000 in each of the next five years Increase in revenues = $50,000 per…
Q: 8 units of milling machine that costs $ 267228 each are bought today. They can be used for 10 years…
A: To find the capitalized cost of the machinery we need to find out the annual worth of costs for each…
Q: FedEx has installed a new radio frequency packages that are incorrectly delivered. The capital…
A: Capital invested= $65000 MARR= 20% EOY Savings 1 $25000 2 $30000 3 $30000 4 $40000 5…
Q: A company is considering switching from a cash only policy to a net 30 credit policy. The price per…
A: NPV :NPV means Net Present ValueIt is the difference between Cash Inflows and Cash Outflows in…
Q: ABC Corporation manufactures a certain product that sells for P5,000 each. The company’s maximum…
A: Given Price of the product P=5000 per unit. Production capacity =360 units per year Currently…
Q: Two alternative designs are under consideration for a tapered fastening pin. The fastening pins are…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The IRR percentage is the discount rate at which the NPV of a project cashflow becomes what? (Type…
A: The time value of money refers to the financial principle that shows the value of a dollar's present…
Q: The project's economic study predicts annual investments of R$300,000,000.00 during three years of…
A: The difference between the current value of cash inflows and withdrawals over a period of time is…
Q: Geothermal energy is a renewable, sustainable energy resource. Geothermal systems are available for…
A: Geothermal energy is renewable energy resource. For this Mr. Naz Metz wants to replace the current…
Q: A civil engineer presently receives a monthly salary of P80,000.00. His invested savings earn 14%.…
A: Investment: It refers to the process under which the economy gets the increase in money supply. The…
Q: AMI, Inc., IS Considering the purchase ot a digital camera tor maintenance of design specitfications…
A: Analysis of Current price. this price of prices over Associate in Nursing indefinite analysis amount…
Q: Hajia Timber Ltd (GTL) produces and exports lumber and planks. It owns a plant which has value of…
A: Recoverable can be calculated by using the following formula.
Q: Natural gas is considered to be a nonrenewable energy source. Which of the following statements is…
A: A non-renewable is a resource which does not regenerate and extinguishes with its use over a period…
Q: A firm must decide whether to construct a small, medium or large stamping plant. A consultant’s…
A: 1)
Q: If a company must choose between two projects, it should proceed with the one that generates a…
A: In capital budgeting, IRR is a tool that is used to measure the profitability of an investment.…
Q: If you invest $10,000 now into a project that will yield net revenues of $1,327 at the end of each…
A: IRR is calculated using excel as follows: Ms Excel -formula-Irr
Q: 4. A stopwatch used for Time and Motion Study has a selling price of P1,500. If its selling price is…
A: Given; Selling price stopwatch used for Time and Motion Study= ₱1500 Selling price is expected to…
Q: company decides to automate a process that will require installing a machine that costs BD8,000 and…
A: *Answer:
Q: A company is currently paying its employees$0.56 per mile to drive their own cars on…
A: Equivalent Annual Cost(EAC) is the annual cost of owning an asset. EAC can be used in decision…
Q: You have been asked to forecast the additional funds needed (AFN) for a firm, which is planning its…
A: Additional funds needed is an idea to utilize the money for the business to grow the business…
Q: Giving the following information on machine A and machine B and assuming an 8.6% MARR, which…
A: Both the machines have an equal lifetime, so to determine which machine will be selected PW method…
Q: In computing the B/C ratio, is the annual revenue counted as benefits? Please compute the B/C ratio…
A:
Q: per unit, and each unit of product can be sold for $65. If the MARR is 15% and the project has a…
A: Given : Initial Investment=$500,000 Annual maintenance costs=$45000 Level of production at= $8.50…
Q: · A young mechanical engineer is considering establishing his own small company. An investment of…
A: GIVEN A young mechanical engineer is considering establishing his own small company. An investment…
Q: Calculate the capitalized cost of a project that has an initial cost of P3,500,000 and an additional…
A: Capitalised cost of any project is calculated when analysis period is considered to be infinite.
Q: Who doesn't love food trucks? Imagine you are being offered to invest in a food truck as part of a…
A: Given information First cost=$100000 Salvage value=$5000 O& M cost =$5000 Overhaul cost=$20000…
Q: Required information Three alternatives are being evaluated based on 7 different attributes, all of…
A: Attributes are the varied factors that are a part of higher cognitive process when chief needs to…
Q: A food processing plant consumed 600,000 kW of electric energy annually and pays an average of P2.50…
A: Present worth is an identicalness technique for investigation in which a task's income is limited to…
Q: An automobile parts manufacturer is considering whether they should invest in an automatic or…
A:
Q: Two lathes are being considered in the manufacture of certain machine parts. Data is given below,…
A: Lathe A LatheB First Cost 40,000 56,000 Salvage Value 5,000 7,000 Annual Maintenance 2,000…
Q: 1. Two alternative designs are under consideration for a tapered fastening pin. The fastening pins…
A: Variable cost is defined as the expenses that are dependent on the units of good produced, i.e that…
Q: Who doesn't love food trucks? Imagine you are being offered to invest in a food truck as part of a…
A: Given information First cost=$100000 Salvage value=$5000 O& M cost =$5000 Overhaul cost=$20000…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- Question 9 Trenny has asked her assistant to prepare estimates of cost of two different sizes of power plants. The assistant reports that the cost of the 150 MW plant is $220,000,000, while the cost of the 270 MW plant is $400,000,000. If Trenny has a budget of only $300,000,000, estimate how large a power plant she could afford using linear interpolation (Enter your answer rounded to one decimal place and in MW eg. XX.X)?Lulu hypermarket estimates daily demand of 18 kgs for a product. It costs RO 100 to make and receive an order, and it takes 16 workdays to receive it. The annual holding cost is 25 % of purchase price. The price RO 2 per kg. The company is operating 5 days per week, and a total of 210 workdays in one year. What is the minimum annual total holding and ordering cost in RO? Round-up to the nearest integer O a. 152 O b. None is correct O c. 725 O d. 625 O e. 615The surface area of a certain plant that requires painting is 8 ,000 sq ft. Two kinds of paint are availablewhose brand are J and K .Paint J costs P1.40 per sq.ft but needs renewal at the end of every 4 years while paint K costsP1.8 per square ft. If money is worth 16% effective , how often should paint K be renewed so that it will be aseconomical as paint J? A) 5.6.years C) 3.9 yearsB) 4.2 years D) 5.3 years
- Padre works for a trade magazine that publishes lists of power-sizing exponents (PSE) that reflect economies of scale for developing engineering estimates of various types of equipment. Padre has been unable to find any published data on the VMIC machine and wants to list its PSE value in his next issue. Given the following data calculate the PSE value that Padre should publish. (Note: The VMIC-100 can handle twice the volume of a VMIC-50.) Cost of VMIC-100 today $250,000 Cost of VMIC-50 5 years ago $95,000 VMIC equipment index today = 350 VMIC equipment index 5 years ago = 235Construction on your custom home is complete and now the yard must be landscaped. The landscape contractor has estimated that 8 cubic yards of dirt and 3 cubic yards of sand will be required to level the yard and provide proper drainage. Dirt is priced at $35 per cubic yard and sand is priced at $27 per cubic yard. She has measured the yard and calculated the area needing sod to be 3600 ft2. Sod is sold in rolls that measure 90 ft? at a cost of $10 each per roll. Shrubbery installation will cost an additional $2500. Estimate the cost of the landscaping.A trailer manufactor has multiple products designed to be towed by a pickup (Ford F-150, Toyota Tacoma, etc). The production of one of their products - the XL7 5x10 trailer - referred to as XL7510 here, has a fixed 9 cost of $62,308 and a variable cost per unit of XL7510 equal to 202 + - dollars, where is the total 10 number of XL7510s produced. Suppose further that the selling price of this product is 1118 The x-values of the break-even points are The maximum revenue is Form the profit function: P(x) = = The maximum profit is The price that will maximize profit is 1 - dollars per unit of XL7510. 10 dollars (round to the nearest cent) dollars (round to the nearest cent)
- Auria will produce a venicle component and knows that each start generates a cost of 5,000 pesos. Its production capacity is 150,000 units and the cost per unit is $ 200, tne annual demand is 100,000 units, and the inventory rate is 15% per month. Consider that the product allows shortages and the cost of goodwill loss is $ 0.3 for each unit of said items, while the penalty cost if they do not deliver is S 30 / unit / year. a) Calculate the total annual cost and the quantity Q required.A company produces and sells a consumer product and is ableto control the demand by varying the selling price. The approximate relationship between price and demand is p = 38+ (2,700/D) - (5000/D²) for D>1 The company is seeking to maximize its profit. The fixed cost is $1,000 and the variable cost is $ 40 per unit. What is the number of units that should be produced and sold each month to maximize profit? A 71 B 60 с 50 D 25What can you say about negative and positive gross margin in sensitivity analysis
- ENGINEERING ECONOMY (ALREADY ANSWERED IN BARTLEBY. PLEASE DO NOT COPY) RATE WILL BE GIVEN. WRITE THE COMPLETE EXPLANATION LEGIBLY OR TYPEWRITTEN. You have been taking a course on game theory at university. After attending 10 of 15 hours of classes, you realize that you don’t enjoy the subject and are likely to do poorly in the final exam. At this point, you could stop attending these classes and give up on the course. However, you decide that since you have already spent so much time going to class, it would be costly to stop attending them. Is this reasoning correct?Your friend Claire has been designing her own hoodies and giving them as gifts to friends and family. She has decided to sell them online soon by using a 3rd party website with a service surcharge based on her pricing. Using the information below, what is the relationship between Claire's selling price per hoodie and profit margin? (Please plot a graph dipcting the relationship) Costs ($) Base Hoodie Cost $30 Craft Supplies to design $10 Selling Website Service Charge 5%Your bakery can produce 3,000 unit of bagel per week for 48 weeks of operation per year. You aim to stay in this business for five years. You can either make the dough for the bagels in house or buy them from a different source. If you make the dough in house, you face with annual labour costs: $30,000, annual safety regulation costs: $5,000 and annual material costs: $20,000. But, if you choose to buy the dough from a different source, you must have a special dough-mixer machine to make adjustment for your production. Therefore, you need to pay $5,000 for the dough mixer machine, which has $1,000 salvage value at the end of 5 years. Furthermore, you face with annual maintaining costs including labour costs: $20,000 and additional overhead costs: $10,000 Using this information, find the unit cost of buy the bagel option with MARR 20%. a) Between $1.00 and $1.10 b) None of the answers are correct c) Between $1.20 and $1.30 d) Between $0.20 and $0.30 e) Between $0.50 and $0.60 f) Between…