A manufacturing plant is to purchase a new equipment worth P50,000. Revenues for the first three years is P20,000, while expenses for the same years will be P5,000. A year later, revenues surpassed expenses by P15,000 and will last for three years. Determine the ERR of the project is MARR is 18% and ε = 15%.
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What is the ERR? (Write in decimal form)
Is the project acceptable?
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- An industrial machine costing $10,000 will produce net cash savings of $4,000 per year. The machine has a five-year useful life but must be returned to the factory for major repairs after three years of operation. These repairs cost $5,000. The company's MARR is 10% per year. What IRR will be earned on the purchase of this machine? Analyze the sensitivity of IRR to ±$2,000 changes in the repair cost. Perform the sensitivity analysis. Fill-in the table below. (Round to one decimal place.) Change in the repair cost Is the project acceptable? IR - $2,000An industrial machine costing $10,000 will produce net cash savings of $4,000 per year. The machine has a five-year useful life but must be returned to the factory for major repairs after three years of operation. These repairs cost $5,000. The company's MARR is 10% per year. What IRR will be earned on the purchase of this machine? Analyze the sensitivity of IRR to ± $2,000 changes in the repair cost. Perform the sensitivity analysis. Fill-in the table below. (Round to one decimal place.) Change in the repair cost - $2,000 IRR % Is the project acceptable?An engineer has recently purchased a new piece of equipmenato use in analyzing geological formations. The equipment has no maintenance costs the first year due to a one year's free maintenance warranty. In the second year, it is expected to cost $20 to maintain the equipment and in subsequent years the cost of maintenance will increase by $20 per year (i.e. maintenance cost is $40 in year three, $60 in year four, and so on). Approximately what amount must be set aside now at 6% interest to pay the cost of maintaining the equipment over the first six years of ownership? $289 $206 $254 $229
- An industrial machine costing $10,000 will produce net cash savings of $4,000 per year. The machine has a five-year useful life but must be returned to the factory for major repairs after three years of operation. These repairs cost $5,000. The company's MARR is 10% per year. What IRR will be earned on the purchase of this machine? Analyze the sensitivity of IRR to $2,000 changes in the repair cost. Perform the sensitivity analysis. Fill-in the table below. (Round to one decimal place.) Change in the repair cost - $2,000 $0 IRR 21.05% % Is the project acceptable? YesA company produces a certain commodity. The labor and material cost for each item produced is P65. Other variable cost is P28 per unit. The fixed monthly cost is P440,000. If each item is to be sold at P170 determine the number of units that must be produced per month in order to break-evenInitial values are: PM = $20000 PG = $1.00 I = $15000 A = $10000 This function is: QT = 200 -.01PT +.005PM -10PG +.01I +.003A please Answer from 4 to 5 complete
- The following data for X and Y are in format [XY]. First cost in $: [-80,000,-95,000], Annual cost in $: [-20,000, -15,000], Salvage value in $: [10,000, 30,000], $ Life in years [2,4]. The interest rate is 10% per year. The equation that will calculate the present worth of machine X is: Select one: a. b. O c. PWX = -80,000 - 20,000(P/A, 10%,2) + 10,000(P/F,10%,2) PWX = -80,000 - 15,000(P/A, 10%,4) + 30,000[P/F,10%,4) PWX = -80,000 - 20,000(P/A,10%,4) - 70,000[P/F,10%,2) + 10,000(P/F,10%,4) O d. PWX = -80,000 - 20,000(P/A, 10%,4) - 80,000(P/F,10%,2) + 10,000 (P/F,10%,4)CDO City started a Solid Waste Management initiative in partnership with Tetra Pak Philippines and BXTRA Philippines. This project enables Kagayanons to earn cash/environmental points with every 15 pieces 1 liter UBC of any brand. Profits from recycling Used Beverage Containers (UBCS) have increased at a constant rate of Php 1100 in each of the last 3 years. If this year's profit (end of year 1) is expected to be Php 6000 and the profit trend continues through year 5, what will the profit be at the end of year 5? О а. Р 10400 О Б. Р1100 О с. Р7100 O d. P 6000Calculate the sensitivity with respect to PW to +50% alters in (a) Initial investment (ii) Net annual receipt, (iii) MARR for following information Investment $95K, useful life 10 years, MARR=12%, Salvage value $10K, Annual receipts $20K
- Tony works for ABC Window Products. While performing an analysis for a new window product, Tony found a report from last year that provided the following information regarding the manufacture of a similar product: annual production rate = 40,000 units; selling price = P70 per unit; fixed production cost = P240,000 per year; variable production cost = P1,700,000 per year; variable selling expenses = P96,000 per year. What is the breakeven production rate per year of the company? Blank 1 unitsAn engineer must recommend one of two machines for integration into an upgradedmanufacturing line. She obtains estimates from two salespeople. Salesman A gives her theestimates in future (then-current) dollars, while saleswoman B provides the estimates in today’s(constant-value) dollars. The company has a MARR of a real 15% per year, and it expectsinflation to be 5% per year. Use PW analysis to determine which machine the engineer shouldrecommend.A vertical oil well has been drilled and completed. The productive zone is between the depths of 2,800 and 2,900 feet, you can assume there is oil in the entire thickness (gross = net). The average porosity is 10%, average water saturation is 20% and the oil formation volume factor is 1.3 RB/Stb. Other reservoirs with similar properties have drainage areas of 40 acres and the recovery factor 10.47305% (it is known with extreme precision!) a) Compute STOIIP and ultimate recovery, using the formals presented in lecture b) This well will also have a gas oil ratio (GOR) of 800 scf/bbl, how much gas is expected to be produced from this well?