A process for producing the mosquito repellant Deet has an initial investment of $200,000 with annual costs of $50,000. Income is expected to be $90,000 per year. What is the simple payback period? What is the compounded payback period at an interest rate of 12%?
Q: Cost of the Plan projects Cost of the Land and expropriation Cost of the Roads and preparation costs…
A: Cost is the measure of the alternative opportunities foregone in the choice of one good or activity…
Q: Authentic Serai Halia is a catering firm that serves variety of authentic traditional Malaysian…
A: Break-even quantity = Fixed cost / (Price - Varibale cost)
Q: The benefit cost ratio for a pest control program proposed by the Department of Agrarian Reform is…
A: in this situation, the benefit cost ratio for a pest control program proposed by the Department of…
Q: Given the selling price at P120 per unit; contribution margin at 25% and fixed cost at P250,000, the…
A: The contribution margin is the selling price minus variable cost. Contribution margin ratio =…
Q: When a B/C analysis is conducted, the benefits and costs: (a) Must be expressed in terms of their…
A: Answer - B/C analysis - It is used to evaluate the strength and weakness different options to get…
Q: The Oklahoma City Zoo has proposed adding to their Web site a major segment providing a virtual tour…
A: In the question above, it is given that : Initial Cost = $325,000 Research and Entertainment cost =…
Q: The cost of maintaining a permanent monument is expected to be $70,000 now and $70,000 every 10…
A: Given: The cost of maintaining a project is (PV) = $70,000 The future value of this project is (FV)…
Q: When considering two alternatives that are described only in terms of the cost of ownership, the…
A: In this case, the breakeven point can be estimated by using the given intial cost and need more…
Q: The landfill for Wellsburg has an area of 30 acres available for receiving waste from the city of…
A: Break even point is the point where firms revenue is just covering the cost of the production or…
Q: The Oklahoma City Zoo has proposed adding to their Web site a major segment providing a virtual tour…
A: Benefit - Cost Ratio = PV of Total Benefits PV of Total Cost In the above example , Benefits are…
Q: The National Park Service is considering two plans for rejuvenating the forest and landscape of a…
A: The CW method will take into the usage of the Present value factors and the concept of the Time…
Q: Authentic Serai Halia is a catering firm that serves variety of authentic traditional Malaysian…
A: Total cost of production includes fixed cost and variable cost, variable cost is dependent on the…
Q: Two designs are suitable for housing track and field events. Design N costs $800,000 with annual…
A: Design N:- Initial Cost = 800,000 Annual Cost = 25,000/ year life = Infinite Design T:- Initial…
Q: Two alternatives are being considered for a certain project. Alternative A has an initial cost of…
A: Modified BC ratio for Alternative A = 12334.22 / 10000 = 1.23 For Alternative B =…
Q: Solve using FW method and INCREMENTAL ANALYSIS. Show cash flow diagram and complete solution. The…
A: Given information 4 alternatives are mentioned below: MARR = 10% or 0.10
Q: The Oklahoma City Zoo has proposed adding to their Web site a major segment providing a virtual tour…
A: ANSWER
Q: The cost of upgrading a section of Grand Loop Road in Yellowstone National Park is $2.1 million.…
A:
Q: Four mutually exclusive projects are being considered for a new two-mile jogging track. The life of…
A: GIVEN Alternative A B C D Initial cost $62,000 $25,000 $150,000…
Q: A state-funded water irrigation project in the province of Davao del Sur for the rice farmers will…
A: Initial cost = $50,000 1st year Benefit = $10,000 Increasing by 10% each year Maintenance cost =…
Q: If two mutually exclusive alternatives have B/C ratios of 1.4 and 1.5 for the lower and higher cost…
A:
Q: Three mutually exclusive designs for a bypass are under consideration. The bypass has a 10-year…
A: To find the optimal range of MARR we need to find the IRR of all the three alternatives . IRR :…
Q: Determine the IROR and profitability index at 12% per year for an industrial smart-grid system that…
A: The value is established on an assessment of the asset's significance, or the value can be…
Q: Solve the below given problem using the ERR method. Let ∈ = 10% per year. The Consolidated Oil…
A: Hi, thanks for the question. Since there are multiple sub-questions, we will answer for the first…
Q: Tom, the owner of Burger Palace, determined that the weighted average cost of capital is 8%. He…
A: The MARR should be derived using the risk premium approach. This implies that the project has higher…
Q: The International Parcel Service has installed a new radio frequency identification system to help…
A:
Q: An engineer is considering the projects below, all of which can be last indefinitely. If the…
A: We first need to calculate NPV of each option. NPV = Annual Income/ MARR – first cost Machine 1 NPV…
Q: Three methods can be used for producing heat sensors for high-temperature furnaces. The interest…
A: Given That the total cost for 5 Years for Methods C is 500000$ Let us first find the annual fixed…
Q: Determine the capitalized cost of a permanent roadside historical marker that has a first cost of…
A: On a company's balance sheet, a capitalized cost is an expense that is added to the cost basis of a…
Q: hated capital investment amounts and annual expenses are as follows: Design End-of-Year ER1 ER2…
A: the minimum acceptable rate of return, often abbreviated MARR, or hurdle rate is the minimum rate…
Q: A consulting engineer is currently evaluating 4 projects for the US government. The annual worth…
A: Companies perform a cost-benefit analysis to determine which actions should be made and which should…
Q: b) Kenya is in the advanced stages of preparing to manufacture COVID-19 vaccines locally. The…
A: i) Given, 112 have the capacity to produce JJ and AZ. And, 79 have capacity to manufacture JJ and AZ…
Q: Five thousand new smart camera systems are needed annually to expand the security surveillance of…
A: a. The decision tree is given below. The values are given in $1,000 units.
Q: Six projects have been identified for possible implementation by a company that makes dry ice…
A: The number of possible implementation projects is given to be 6. The budget limitation of the firm…
Q: A food processing plant has an estimated initial cost P15.5M with a net annual profit of P3M for the…
A: We are going to find the Present Value of Benefit and Present Value of Cost to identify BC ratio to…
Q: There are five independent projects that must be evaluated on the basis of the profitability index.…
A: a. Table 1 shows the project cash flow;
Q: Three different plans were presented to the GAO by a high-technology facilities manager for…
A: FiRST OF ALL, we need to calculate the effective annual rate of interest rate, since the interest…
Q: A bridge design firm is performing an economic analysis of two mutually exclusive designs for a…
A: In economics and finance, present value, also known as present discounted value, is the value of an…
Q: Abel and Family Perfumes wants to add one or more of four new products to its current line of…
A: a. The comparison of the four different projects can be done by calculating the present worth of the…
Q: A bridge is to be constructed now as part of a new road. Engineers have determined that traffic…
A: * SOLUTION :-
Q: Due to a restricted budget, a company can only undertake one of the following projects: Project X:…
A: Project X Initial investment = $800,000 Profit in: Year 1 = $400,000 Year 2 = $375,000 Year 3 =…
Q: McBurger, Inc., wants to redesign its kitchens to improve productivity and quality. Three designs,…
A: Given, Number of sandwiches=500 Cost of sandwich= $1.30 The selling price of sandwich= $2.50
Q: Two different liquid filter systems are being studied to clarify a liquid stream. A traditional…
A: Special Pleated filter system should be chosen, since it cost less than Traditional filter system.…
Q: Define the term Net Present Worth in the present worth analysis?
A: Net present worth (NPW) or net present value (NPV) is defined as present worth of the total cash…
Q: A piece of new equipment has been proposed by engineers to increase the productivity of a certain…
A: A amount of money today is worth more than a sum of money in the future, according to the concept of…
Q: The sheriff of Los Lunas county along the Arizona- Mexico border asked the county to build a new…
A: Economical: Economical is something practical that is a decent worth, or somebody who doesn't waste,…
Q: The Consolidated Oil Company must install antipollution equipment in a new refinery to meet federal…
A: Given the 4 alternatives , first we will use PW method as shown : Alternative D1 PW 10%…
Q: A bridge design firm is performing an economic analysis of two mutually exclusive designs for a…
A:
Q: Based on estimates the data for 2 types of bridges with different lives are as follows. If the…
A: PLEASE BE NOTED THAT TO MAKE THE CALCULATIONS SIMPLER WE CAN CONSIDER DIGITS IN ONCE INSTEAD OF…
Q: A flood control project at Pleasant Valley dam is projected to cost $2,000,000 today, have annual…
A: Capitalized cost: It is an expense added to the cost basis of a fixed asset on the balance sheet of…
Q: The estimated cost for a multitube cyclone system with a capacity of 60,000 cubic feet per minute is…
A:
For each of the following problems, (a) draw the cash flow diagram (as needed); (b) present clean and clear manual solutions to the problem; (c) highlight the final answer (only the final answer as required by the problem) by enclosing it within a box.
- A process for producing the mosquito repellant Deet has an initial investment of $200,000 with annual costs of $50,000. Income is expected to be $90,000 per year. What is the simple payback period? What is the compounded payback period at an interest rate of 12%?
no excel
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 1 images
- For each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear manual solutions to the problem; (c) highlight the final answer (only the final answer as required by the problem) by enclosing it within a box. NO EXCEL An engineer is trying to decide which process to use to reduce sludge volume prior to disposal. Belt filter presses (BFP) will cost $200,000 to buy and $80,000 per year to operate. Belts will be replaced one time per year at a cost of $5,500. Centrifuges will cost $400,000 to buy and $120,000 per year to operate, but because the centrifuge will produce a thicker cake, the sludge hauling cost to the monofill will be $30,000 per year less than for the belt presses. The useful lives are 5 and 10 years for BFP and the Centrifuge respectively. The salvage values are assumed to be 10% of the first cost of each process whenever they are closed down or replaced. The interest rate is 8%. Use the PW method to select the more economical process.Ken Allen, capital budgeting analyst for Bally Gears, Inc., has been asked to evaluate a proposal. The manager of the automotive division believes that replacing therobotics used on the heavy truck gear line will produce total benefits of $516,000 (in today's dollars) over the next 5 years. The existing robotics would produce benefits of $387,000 (also in today's dollars) over that same timeperiod. An initial cash investment of $206,400 would be required to install the new equipment. The manager estimates that the existing robotics can be sold for $72,000. Show how Ken will apply marginal cost-benefit analysistechniques to determine the following:a. The marginal benefits of the proposed new robotics.b. The marginal cost of the proposed new roboticsc. The net benefit of the proposed new robotics.Consider the following assumptions, field size 640 acres, non-cropped area 5 acres, 2600' total length center pivot cost of 30,000 with a life expectancy of 15 years, corn selling price of $3.75 per bushel, expected grain yield of 160 bushels per acre. If SDI irrigation costs $675 per acre installed with a life expectancy of 25 years, expected yield of 160 bushels per acre, you would be money ahead to install SDI. True False
- An industrial engineering consulting firm usually observes a 90% learning curve rate in the installation of enterprise level software with its clients. If the first installation required 75 hours, estimate the time required for (a) the fifth, (b) the tenth, and (c) the twentieth installations. (d) Research the AMCF Code of Ethics. How are these similar to and different from engineering society ethics statements from your discipline?Q#1) Select the most economical among the following mutually exclusive alternatives using PW and AW methods of analysis at interest rate of 10% per year: First cost ($) Annual Operating Cost ($/year) Major repair ($) Life (years) Salvage ($) Machine A 20,000 5,000 for the first year and increases by 1,000 each year none 10 2,000 Machine B 50,000 2,000 per year up to year 10 and 5,000 per year thereafter 5,000 every 5 years including at year 40 40 5,000 Q#2) Find the Rate of Return for machines A and B in question #1 if the annual revenues for each machine is estimated at $20,000 per year.Ken Allen, capital budgeting analyst for Bally Gears, Inc., has been asked to evaluate a proposal. The manager of the automotive division believes that replacing the robotics used on the heavy truck gear line will produce total benefits of $560,000 (in today's dollars) over the next 5 years. The existing robotics would produce benefits of $400,000 (also in today's dollars) over that same time period. An initial cash investment of $220,000 would be required to install the new equipment. The manager estimates that the existing robotics can be sold for $70,000. Show how Ken will apply marginal cost-benefit analysis techniques to determine the following: The marginal (added) benefits of the proposed new robotics is $______________ The marginal (added) cost of the proposed new robotics is $__________________ The net benefit of the proposed new robotics is
- Q2: Select best answer, four mutually exclusive cost alternatives been evaluated by the AW which one should be selected: A- $13,562 per year B- $15,002 per year C- $17,322 per year D- $12,000 per year mativa araTwo automatic systems for dispensing maps are being compared by the state highway department. The accompanying breakeven chart of the comparison of these systems (System I vs. System II) shows total yearly costs for the number of maps dispensed per year for both alternatives. Answer the following questions. (a) What is the fixed cost for System I? (b) What is the fixed cost for System II? (c) What is the variable cost per map dispensed for System I? (d) What is the variable cost per map dispensed for System II? (e) What is the breakeven point in terms of maps dispensed at which the two systems have equal annual costs? (f) For what range of annual number of maps dispensed is System I recommended? (g) For what range of annual number of maps dispensed is System II recommended? (h) At 3000 maps per year, what are the marginal and average map costs for each system?(a) draw the cash flow diagram (as needed); (b) present clean and clear manual solutions to the problem; (c) highlight the final answer (only the final answer as required by the problem) by enclosing it within a box. NO EXCEL JUST CASH FLOW DIAGRAM A process for producing the mosquito repellant Deet has an initial investment of $200,000 with annual costs of $50,000. Income is expected to be $90,000 per year. What is the simple payback period? What is the compounded payback period at an interest rate of 12%?
- Preliminary plans are under way for the construction of a new stadium for a major league baseball team. City officials have questioned the number and profitability of the luxury corporate boxes planned for the upper deck of the stadium. Corporations and selected individuals may buy the boxes for $340,000 each. The fixed construction cost for the upper deck area is estimated to be $5,780,000, with a variable cost of $170,000 for each box constructed. (a) What is the break-even point for the number of luxury boxes in the new stadium? x = (b) Preliminary drawings for the stadium show that space is available for the construction of up to 52 luxury boxes. Promoters indicate that buyers are available and that all 52 could be sold if constructed. (ii) What profit is anticipated? (Enter a negative value if a predicted loss.) $A company planning to manufacture Webcams has to decide on the location of the production facility. Three location are being considered A, B and C. the fixed costs at the three locations are estimated to be $40000, $65000, and $32000 per year respectively. The variable costs are $4, $2.5 and $4.5 per unit, selling price in three location is $110, $180 and $90 respectively. Maximum capacity is 12000 unit/year in A, 19500 unit/year in B and 9600 unit/year in C. Find the following below: 1- Break- Even quantity in three location2- Profit or loss in location A when quantity is 400 and 300 3- Profit or loss in location B when quantity is 350 and 450 4- Profit or loss in location C when quantity is 425 and 325 5- Maximum revenues in A, B and C6- Range of profit at Demand in A, B and C Sketch the Break – Even chart each three locationFor each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear manual solutions to the problem; (c) highlight the final answer (only the final answer as required by the problem) by enclosing it within a box. An engineer is trying to decide which process to use to reduce sludge volume prior to disposal. Belt filter presses (BFP) will cost $200,000 to buy and $80,000 per year to operate. Belts will be replaced one time per year at a cost of $5,500. Centrifuges will cost $400,000 to buy and $120,000 per year to operate, but because the centrifuge will produce a thicker cake, the sludge hauling cost to the monofill will be $30,000 per year less than for the belt presses. The useful lives are 5 and 10 years for BFP and the Centrifuge respectively. The salvage values are assumed to be 10% of the first cost of each process whenever they are closed down or replaced. The interest rate is 8%. the PW method and a study period of 15 years.