The required investment cost of a new, large shopping center is $51 million. The salvage value of the project is estimated to be $18 million (the value of the land). The project's life is 12 years and the annual operatingexpenses are estimated to be $16 million. The MARR for such projects is 15% per year. What must the minimum annual revenue be to make the shopping center a worthwhile venture?Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year.To make the shopping center a worthwhile venture, the minimum annual revenue must be $million per year. (Round to three decimal places.)ReferenceDiscrete Compounding; i=15%Single PaymentUniform SeriesCompoundAmountCompoundSinkingFundCapitalRecoveryFactorPresentAmountPresentFactorWorth FactorFactorWorth FactorFactorTo Find FTo Find PTo Find FTo Find PTo Find ATo Find AGiven PGiven FGiven AGiven AGiven FGiven PNFIPPIFFAPIAAIFAIP1.15000.86961.00000.86961.00001.150021.32250.75612.15001.62570.46510.615131.52090.65753.47252.28320.28800.438041.74900.57184.99342.85500.20030.350352.01140.49726.74243.35220.14830.29836.2.31310.43238.75373.78450.11420.264272.66000.375911.06684.16040.09040.240483.05900.326913.72684.48730.07290.222993.51790.284316.78584.77160.05960.2096104.04560.247220.30375.01880.04930.1993114.65240.214924.34935.23370.04110.19115.35030.186929.00175.42060.03450.1845136.15280.162534.35195.58310.02910.1791147.07570.141340.50475.72450.02470.1747158.13710.122947.58045.84740.02100.1710169.35760.106955.71755.95420.01790.16791710.76130.092965.07516.04720.01540.16541812.37550.080875.83646.12800.01320.16321914.23180.070388.21186.19820.01130.16132016.36650.0611102.44366.25930.00980.1598234

Formula: Minimum revenue required = Investment cost *(A/p,I,n) + operating expenses - Salvage value…

The required investment cost of a new, large shopping center is $51 million. The salvage value of the project is estimated to be $18 million (the value of the land). The project's life is 12 years and the expenses are estimated to be $16 million. The MARR for such projects is 15% per year. What must the minimum annual revenue be to make the shopping center a worthwhile venture? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year. To make the shopping center a worthwhile venture, the minimum annual revenue must be $ million per year. (Round to three decimal places.) Reference Discrete Compounding; i=15% Single Payment Uniform Series Capital Compound Amount Compound Amount Sinking Fund Factor Present Present Recovery Factor Factor Worth Factor Factor Worth Factor To Find F To Find P To Find F To Find P To Find A To Find A

The required investment cost of a new, large shopping center is $51 million. The salvage value of the project is estimated to be $18 million (the value of the land). The project's life is 12 years and the expenses are estimated to be $16 million. The MARR for such projects is 15% per year. What must the minimum annual revenue be to make the shopping center a worthwhile venture? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year. To make the shopping center a worthwhile venture, the minimum annual revenue must be $ million per year. (Round to three decimal places.) Reference Discrete Compounding; i=15% Single Payment Uniform Series Capital Compound Amount Compound Amount Sinking Fund Factor Present Present Recovery Factor Factor Worth Factor Factor Worth Factor To Find F To Find P To Find F To Find P To Find A To Find A

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

Please no written by hand solutions Q3. An individual makes five annual deposit of $2000 in a savings account that pays interest at a rate of 4% per year. One year after making the last deposit, the interest rate changes to 6% per year. Five years after the last deposit the accumulated money is withdrawn from the account. How much is withdrawn?
Click the icon to view the alternatives description. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. The FW of the Alternative 1 is $ (Round to the nearest dollar.) Ĵ Today, you have $40,000 to invest. Two investment alternatives are available to you. One would require you to invest your $40,000 now, the other would require the $40,000 investment two years from now. In either case, the investments will end five years from now. The cash flows for each alternative are provided below. Using a MARR of 10%, what should you do with the $40,000 you have? Click the icon to view the alternatives description. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. The FW of the Alternative 1 is S. (Round to the nearest dollar.)
The annual income from an apartment complex is $23,155. The annual expense is estimated to be $2,588. The apartment complex could be sold for $110,110 at the end of 10 years. If your MARR is 10%, how much should you pay for the apartment complex if you were to buy it now?
YOUR FATHER PLANS TO INVEST P500,000.00 IN AN AUTO WASHING MACHINE WITH THE FF DATA: (20 PTS.) WASHING CAPACITY- 12 CARS/HR AT 8HRS OPERATION/DAY FOR 6DAYS A WEEK AND 50 WEEKS/YEAR CAR WASH CHARGE-P25/CAR MANUAL LABOR COST ( 2 WORKERS)-P25/HR PER WORKER PLUS A PAID VACATION BENEFITS OF 2 WEEKS PER YEAR MAINTENANCE COST-P8500.00/MONTH DESIRED RATE OF RETURN ON THE CAPITAL-20% PRESENTLY YOUR FATHER IS EARNING P25,000.00/MONTH AS A REGULAR EMPLOYEE AND WANTS TO CONCENTRATE ON THIS BUSINESS AND WANT TO RECOVER HIS INVESTMENT IN 5 YEARS. USING ROR AND AW METHOD OF ECONOMY STUDIES, SHOULD YOUR FATHER PROCEED WITH THE INVESTMENT?
A company is considering establishing a new machine to automate a meatpacking process. The machine will save $59,350 in labor annually. The machine can be purchased for $271,296 today and will be used for 8 years. It has a salvage value of $11,071 at the end of its useful life. The new machine will require an annual maintenance cost of $9,594. The corporation has a minimum rate of return of 9.4%. Calculate the NPW.
You have received the proposal to invest $1,000,000 in exchange for receiving income of $75,000 at the end of the first month that would decrease 0.3% each month starting from the 2nd month. Expenses are estimated at $25,000 at each end of the month, starting from the 1st month. Assume that the proposal will last 5 years and that the minimum acceptable rate of return (m) is 1.5% per month. What does the Present Value criterion recommend? Show your work. If flow patterns are found (uniform, arithmetic, exponential), use factors.
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. You purchase a special equipment that reduces defects by $15,000 per year on an item. This item is sold on contract for the next 5 years. After the contract expires, the special equipment will save approximately $5,000 per year for five years. You assume that the machine has no market value at the end of 10 years. How much can you afford to pay for this equipment now if you require a 12% annual return on your investment?
An electronics firm is planning to manutacture a new handheid gaming device tor the preteen market The data have been estimated tor the product Assuming a negligible market (salvage) value tor the equipment at the end of tive years, determine the breakeven annual sales volume for this product. E Click the icon to view the data estimated for the product A Click the icon to view the interest and annuity table for discrete compounding when i= 15% per year. The breakeven annual sales volume is 5000 units. (Round to the nearest whole number) More Info Sales price $12.50 per unit Equipment cost Ovorhoad cost Operating and maintenance cost Production lime per 1,000 units Study period (planning horizon) $200,000 $50.000 per yoar $25 per operating hour 100 hours 5 years 15% per year MARR
Lipsion Ltd company is thinking about investing in one of two potential new productsfor sale. The projections are as follows: year revenue/ (product s) revenue/ (product V) 0 (150,000) outlay (150,000) outlay 1 14,000 15,000 2 24,000 25,333 3 44,000 52,000 4 84,000 63,333 Calculate the payback period for both products in years and months, not as a decimal. Please present answer to nearest month.
Question 1 In planning for your retirement, you would like to withdraw $60,000 per year for 12 years. The first withdrawal will occur 20 years from today. Click here to access the TVM Factor Table Calculator What amount must you invest today if your return is 10% per year? $ Round entry to the nearest dollar. Tolerance is +4.
If we are charged $50 on a $500 loan that is due in 1 month, what is the effective annual rate? (ieff) A 100% B 120% C 180% D 200% E 213% F 223% G 243% H 263%
Complete the following analysis of cost alternatives and select the preferred alternative. The study period is 10 years and the MARR = 10% per year. "Do Nothing" is not an option. A B $15,000 $16,100 240 290 1,000 1,250 -$41,731 - $45,131 Capital investment Annual costs Market value at EOY 10 FW (10%) Click the icon to view the interest and annuity table for discrete compounding when i = 10% per year. The FW of the alternative C is $. (Round to the nearest dollar.) Select the preferred alternative. Choose the correct answer below. OA. Alternative C OB. Alternative A OC. Alternative B O D. Alternative D D $17,900 110 1,950 ??? - $46,231 с $12,500 450 1,800