Please do fast ... ASAP...fast...just final answer ASAP 10. Consider a machine at a bottling plant with an initial cost of $150,000, operating andmaintenance costs of $17,500 per year, and an estimated salvage value of $25,000 at the endof 30 years. Assume an interest rate of 8%, What is this machine's capital-recovery cost?(select the closest answer)a. $14,324b. $14,100c. $13,324d. $13,100

Given First cost of machine P=$150,000 Salvage value S=$25000 life of machine =30 years rate of…

10. Consider a machine at a bottling plant with an initial cost of $150,000, operating and maintenance costs of $17,500 per vear, and an estimated salvage value of $25,000 at the end of 30 years. Assume an interest rate of 8%. What is this machine's capital-recovery cost? (select the closest answer) a. $14,324 b. $14,100 c. $13,324 d. S13.100

10. Consider a machine at a bottling plant with an initial cost of $150,000, operating and maintenance costs of $17,500 per vear, and an estimated salvage value of $25,000 at the end of 30 years. Assume an interest rate of 8%. What is this machine's capital-recovery cost? (select the closest answer) a. $14,324 b. $14,100 c. $13,324 d. S13.100

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A new drill press costs $12,000. It would potentially produce an additional $4,000 of revenue per year and have an operating expense of $1,200. What is the PW of the drill press if the new equipment is expected to last 8 years and i = 10%? Select one: a. $15,534 b. $19,345 c. $14,938 d. $21,735
MY NOTES ASK YOUR TEACHER Derive the equation to compute the equivalent annual cost given the capital cost of a highway, such that A (A/P) x P, where A/P is the capital recovery factor. (Use the following as necessary: P for the present worth, i for the annual interest as a decimal number, and n for the number of years.) A= DACCICUCE 43 Compute the equivalent annual cost (in dollars) if the capital cost of a transportation project is $500,000, annual interest 9.8%, and n 30 years. (Enter your answer as a positive value.)
101 Use the following information to answer the question which immediately follows Y = 2,000, GT-200, Cd=400 +0.9(Y-T) - 600r, 1200-80r, L-0.5Y 500, M-5000, P-7.35, n² = 0.02 What is the value of r? Select one a 0.58 Ob. 0.45 OC 0.62 Od 0.38 13
7. A factory engaged in the fabrication of an automobile part with a production capacity of 700,000 units per year is only operating at 62% of capacity due to the unavailability of the necessary foreign currency to finance the importation of the raw materials. The annual income is P430,000. The annual fixed cost is P190,000 and the variable cost is PO.348 per unit. What is the break-even point?
. At the end of their useful lives alternatives A and C will be replaced with identical replacements (the repeatability assumption) so that a 20-year service requirement (study period) is met. Which alternative should be chosen and why? b. Now suppose that at their end of their useful lives, alternatives A and C will be replaces with replacement alternatives having an 8% internal rate of return. Which alternative should be chosen and why?
The following are data from a production, calculate; The Break-even point in terms of sales value and in . The production demand is at 20,000 units. What is the cw1ent production profit? If the management decides to lower dow11its selling price by 50% given the same demand, will this be a sound decision? Justify. Monthly Fixed Factory Overhead Cost = P600,000 Monthly Fixed Selling Overhead Cost = Pl20,000 Va1iable Manufacturing Cost per Unit = P220 Va1iable Selling Cost per Unit = P30 Variable Distribution Cost per Units = P50 Selling Price per limit = P400
13.12 You work for Bellevue Window Products. While performing an analysis for a new window prod- uct, you found a report from last year that pro- vided the following information regarding the manufacture of a similar product: annual produc- tion rate T 40,000 units; selling price = $70 per unit; fixed production cost = $240,000 per year; variable production cost = $1,700,000 per year; variable selling expenses = $96,000 per year. As a first-cut, you decide to use this information to estimate (a) the breakeven production rate per year, (b) the company's profit last year, and (c) the annual production rate that would generate a profit of $1,000,000 per year. What are your estimates?
13,000 6. The Imperial Chemical Company is considering purchasing a chemical analysis machine worth $13,000. Although the purchase of this machine will not produce any increase in sales revenues, it will result in a reduction of labour costs. In order to operate the machine properly, it must be calibrated each year. The machine has an expected life of 6 years, after which it will have no salvage value. The following table summarizes the annual savings in labour cost and the annual maintenance costs in calibration over 6 years: Year (n) Net Cash Flow ($) 0 Costs ($) Savings ($) -13,000 1 2 3 4 2,300 6,000 3,700 2,300 7,000 4,700 2,300 9,000 6,700 2,300 9,000 6,700 5 2,300 9,000 6,700 6 2,300 9,000 6,700 Find the internal rate of return for this project. [6]
You have the following information on a potential investment. Capital investment $900,000 Estimated useful life 6 years Estimated salvage value 0 Estimated annual net cash inflow $213,000 Required rate of return 10% What is the internal rate of return on the investment? a. 10% b. 11% c. 12% d. 9%
Your friend Sarah is planning to open a hardware store. She estimates that it would cost $50,000 each month to rent the location and buy the inventory. In addition, she would have to quit her $3,000/month job at an insurance firm. Her revenue for the store would be $60,000 each month. What is her expected accounting profit per month if she opens the hardware store? A $10,000 B $60,000 C $5,000 D $50,000 E $55,000 F $45,000
a) Define NPV (Net Present Value), Payback and IRR (Internal rate of Return). b) Calculate NPV of the following projects. Discount rate is 10%. c) Which project should be chosen and why? Project Mils proj A Cash flows £ proj B Year 0 Year 1 -10 2 Project Mils proj C Cash flows £ Year 0 Year 1 -10 7 Cash flows £ Project Mils Year 0 -8 Year 1 3 Year 2 Year 2 Year 2 5 5 3 Year 3 7 Year 3 2 Year 3 3
What is Residual income for Galaxy Company if operating income for the period is $125,000, average operating assets are $550,000 and minimum required rate of return is 18%? Select one a. $35,000 b. $25,000 c. $26.000 d. $36,000