Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 6, Problem 27P
To determine
Calculate the cost per mile.
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Jessica has been working for a law firm and earning an annual salary of $90,000. She decides to open her own practice. Her annual expenses were $15,000 for office rent, $1,700 for supplies, $800 for utilities, and a $30,000 salary for a secretary/bookkeeper. Jessica covered her start-up expenses by cashing in a $20,000 certificate of deposit on which she was earning annual interest of $500. (The $20,000 was spent on furniture and at the end of the year the furniture is still in the office, assuming there is no depreciation, so the $20,000 from the certificate of deposit is not a cost).
Her practice generated $150,000 revenue in the first year.
Please show calculations thank you!
Calculate Jessica's Implicit & explicit costs.
Calculate Jessica's Economic costs and economics profit.
Calculate Jessica's Accounting profits.
A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3,867 per year, paid at the beginning of each year, in which case maintenance is provied. Alternatively, she can buy a used van for $6,427 and pay for maintenance herself. She expects to keep the van for three years at which time she could sell it for $1,251. What is the most she should pay for uniform annual maintenance to make it worthwhile to buy the van instead of leasing it, if her MARR is 20%?
A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3,938 per year, paid at the beginning of each year, in which
case maintenance is provied. Alternatively, she can buy a used van for $5,473 and pay for maintenance herself. She expects to keep the van for three years at which time she could sell it
for $1,139. What is the most she should pay for uniform annual maintenance to make it worthwhile to buy the van instead of leasing it, if her MARR is 20%?
Enter your answer as follow: 123456
Chapter 6 Solutions
Contemporary Engineering Economics (6th Edition)
Ch. 6 - Prob. 1PCh. 6 - Prob. 2PCh. 6 - Prob. 3PCh. 6 - Prob. 4PCh. 6 - Prob. 5PCh. 6 - Prob. 6PCh. 6 - Consider the cash flows in Table P6.7 for the...Ch. 6 - Prob. 8PCh. 6 - Prob. 9PCh. 6 - The repeating cash flows for a certain project are...
Ch. 6 - Beginning next year, a foundation will support an...Ch. 6 - Prob. 12PCh. 6 - Prob. 13PCh. 6 - Prob. 14PCh. 6 - Prob. 15PCh. 6 - Prob. 16PCh. 6 - Prob. 17PCh. 6 - Prob. 18PCh. 6 - The Geo-Star Manufacturing Company is considering...Ch. 6 - Prob. 20PCh. 6 - Prob. 21PCh. 6 - Prob. 22PCh. 6 - Prob. 23PCh. 6 - Prob. 24PCh. 6 - Prob. 25PCh. 6 - Prob. 26PCh. 6 - Prob. 27PCh. 6 - Prob. 28PCh. 6 - Prob. 29PCh. 6 - Prob. 30PCh. 6 - Prob. 31PCh. 6 - Prob. 32PCh. 6 - Prob. 33PCh. 6 - Prob. 34PCh. 6 - Prob. 35PCh. 6 - Prob. 36PCh. 6 - Prob. 37PCh. 6 - Prob. 38PCh. 6 - Prob. 39PCh. 6 - Prob. 40PCh. 6 - Prob. 41PCh. 6 - Prob. 42PCh. 6 - Prob. 43PCh. 6 - Prob. 44PCh. 6 - Prob. 45PCh. 6 - Prob. 46PCh. 6 - Prob. 47PCh. 6 - Prob. 48PCh. 6 - Prob. 49PCh. 6 - Prob. 50PCh. 6 - Prob. 51PCh. 6 - Prob. 52PCh. 6 - Prob. 53PCh. 6 - Prob. 1STCh. 6 - Prob. 2STCh. 6 - Prob. 3STCh. 6 - Prob. 4ST
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