D2 The two systems are considered for a project. Suppose MARR is at 10% per year,determine how many units mustelectricity rate costs of Php 0.08/ kwH for the calculation.be used to rationalize the system B.Use theSystem APhp 32,000System BPhp 45,000Installation CostEfficiency78%90%Useful Life10 years15 yearsUser Costs per unitAnnual Maintenance CostPower OutputPhp 0.24Php 7528 kWPhp 0.22Php 10034kW

The electricity rate cost is Php 0.08/KwH. The MARR is 10%. The table containing the information…

Answered: The two systems are considered for a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The projected profit of a hi-tech recording disks retailer is Birr 200,000 for the current year based on sale volume of 200,000 units. The company has been selling the disks for $16 each; variable costs consist of the Birr 10 purchase price and Birr 2 handling cost. The retailer’s annual costs are Birr 600,000. Required: a. Calculate the breakeven point for the current year in units. b. What will be the company’s profit for the current year if there is a 10% increase in projected unit sales volume? c. Management is planning for the coming year when it expects that the unit purchase price of the disks will increase by 30%. What volume of dollar sales must the retailer achieve in the coming year to maintain the current year’s profit if the selling price remains constant at Birr 16
Two lathes are being considered in the manufacture of certain machine parts. Data is given below, all cost in peso: LATHE A LATHE B First Cost 40,000 56,000 Salvage Value 5,000 7,000 Annual Maintenance 2,000 2,800 Operation, Cost/hour 4 3.5 Life, in years 10 12 Time per part (hours) 0.40 0.25 REQUIRED: Determine the number of machine parts/year that could be produced so that 2 lathes will be equally economical if the MARR is 18%. Use AWM If the number of parts is 10,000 units, which lathe will you recommend? Use ROR If the number of parts is 10,000 units, which lathe will you recommend? Use PWM If the number of parts is 10,000 units, which lathe will you recommend? Use EUAC
The monthly demand for ice cream cans being manufactured by Mr. Rivera is 3,200 pcs.With a manually operated guillotine the unit cutting cost is Php 50.00. An electricallyoperated hydraulic guillotine was offered to him at a price of Php 300,000 and whichreduced by 30% the unit cutting cost. Disregarding the cost of money, how manymonths will Mr. Rivera be able to recover the cost of the machine if he decides to buynow? Engineering Economics
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Data for two 50-hp motors are as follows: Alpha motor Beta motor Original cost P37 500 P48 000 Annual maintenance 1500 750 Life, years Efficiency 10 10 87% 92 % Taxes and insurance 3% 3% Power cost is P2 per kWh. If money is worth 20%, how many hours per year would the motors have to be operated at full load for them to be equally economical? If the expected number of hours of operation per year exceeds the break-even point, which motor is more economical?
9. A machine part can be exhausted either from aluminum or steel. There is an order of 8,000 units.Steel costs 3.80Php/kg, while aluminum cost 8.70Php/kg. If steel is used, the steel per unit weighs110g and 30g for aluminum. In production, steel is 50 units/hr and 80units/hr with an aid of a toolcosting 640Php, which will be useless after the 8,000 units are finished. The cost of the machineoperator is 10.80Php/hr. if all other costs are identical, which material is more economical?
You are trying to pick the least expensive car for your new delivery service. You have two choices: the Scion XA, which will cost $13000 to purchase and which will have a OCF of -$1,200 annually throughout the vehicle's expected life of three years as a delivery vehicle; and the Toyota Prius, which will cost $23,000 to purchase and which have a OCT of -$500 annually throughout the vehicle's expected 5-years life. Both cars will be worthless at the end of thier life. If you intend to replace whichever type of car you choose with the same thing when its life runs out, again and again out into foreseeable future, and if your business has a cost of capital of 12 percent, what is the difference in the EAC of the two cars?
if ivalest Ħ 500 today it will become you * 1000 at Yhe echet of 4:5years. What is the effective rate of interet if it is ompounded querterly
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A small shop in Bulacan fabricates threshers for palay producers in the locality. The shop can produce each thresher at a labor cost of P1800. The cost of materials for each unit is P2500. The variable costs amounts to P650/unit, while fixed charges incurred/annum totals P69000. If the portable threshers are sold at P7800/unit, how many units must be produced and sold per annum to break even? Select the correct response: 25 24 23 26
A start up business is considering two types of equipment - data are as follows: ΤΥΡE Α TYPE B First Cost P200,000.00 P300,000.00 Annual operating cost 32,000.00 24,000.00 Annual labor cost 50,000.00 32,000.00 Insurance and property taxes 3% 3% Payroll taxes I 4% 4% Estimated life 10 10 The minimum required rate of return is 15%. What is the exact rate of return? ANSWER: Blank 1
You purchased a building 5 years ago for P 5M. Its annual maintenance expense has been P 250,000 per year. At the end of three years, you spent P 450,000 on roof repairs. At the end of 5 years (now), you sell the building for P 6M. During the period of ownership, you rented the building for P 500,000 per year paid at the beginning of each year. Use the AW AW, PW, FW and ERR method in your solution evaluate this investment when your MARR is 12% per year.

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