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A: A=P(A/P, i%,N) where P is the present equivalent i is the rate of interest N is the time period
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A: In future worth comparison method of analysing the alternatives, future values of the given…
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A: Bonds are defined as a type of debt issued by the business firms to raise capital for their business…
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A: Here we calculate the annual worth of the cash flow by using the given information and conclude the…
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A: Annual investment = $50000 Time = 10 years Revenue per year = $30000 Increase in revenue per year =…
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A: Year A B 0 -18000 -12000 1 5000 3600 2 5500 3800 3 3600 600 4 4300 1000 5 7300 8500
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Q: Josh is receiving 25,000.00 pesos from his grandfather yearly and has decided to invest it next year…
A: ANSWER Josh is receiving 25,000.00 pesos from his grandfather yearly and has decided to invest it…
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Q: In order for a higher cost alternative to be attractive, thte incremental rate of return must be…
A: When the two mutually exclusive alternatives are providing the same benefit, ROR is determined using…
Q: Harley worked for many years to save enough money to start his own residential landscape design…
A: The external rate of return is the rate of return on a project where any excess cash from a project…
Q: A dam will have a first cost of P200M an annual maintenance cost of P1M and minor reconstruction…
A: Present worth= 200M Maintenance cost= 1M Minor reconstruction cost= 5M T= 5 years Interest= 10%
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A: Amount = $50,000 Interest = 4500 after one year,
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A:
Q: (a) How long would it take to recover an investment of $245,000 in enhanced CNC controls that…
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Q: Production engineers of a manufacturing firm have proposed a new equipment to increase productivity…
A: A rate of return (RoR) is the net gain or loss of an investment over a specified time period,…
Q: A dam will have a first cost of $5,000,000, an annual maintenance cost of $25,000 and minor…
A: First cost = $5000000 Annual maintenance cost = $25000 Reconstrction cost = $100000
Q: Bob and Mary Johnson are expecting their first child.They have decided to deposit $1000 into a…
A: Annuity is an amount of dollars that an individual or entity has to pay/receive regularly over a…
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A: Given, face value of bond, F = $50,000 Purchase value, P = $60,000 Cash payment of the bond, C =…
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A: Given: Amount of saving per quarter=$500 Rate of interest compounded semiannually=6% Number of…
Q: Harley worked for many years to save enough money to start his own residential landscape design…
A: ERR or External rate of return"it is the rate of return on a project where any excess cash from a…
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A: Investment spending refers to the spending, or expenditures done by various entities on the purchase…
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A: It is given that the cash flow is $40,000 and the interest rate is 10%.
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A: The rate of return on investment can be calculated by the following formula : R= Net ProfitCost of…
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A: The initial investment is $10,000 The interest rate is 10% per year. Receipts of $1000 per year…
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A: MIRR: The modified internal rate of return is a financial indicator of how appealing an investment…
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A: Given: Cost at time 0=200,000 Interest rate=12%
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A: Initial Cost = 10,000 End of life Cost = 1000 (Old surface removal after useful life ) Interest…
Q: An industrial engineer is considering two robots for purchase by a fiber-optic manufacturing…
A: Future value can be calculated as follows.
Q: Profit and loss (in $1000 units) associated with the sale of a vision-guided machine tool loading…
A: a. Table 1 shows the cash flow. Cumulative cash (CC) flow can be calculated using the following…
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A: Given Method R First cost = 40000 annual operating cost = 25000 salvage = 10000 Time = 5 years Both…
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A: Answer in step 2
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A: Cash flow refers to the inflow and outflow of cash in a project or a business. The present worth of…
Q: A building has a gymnasium with sixteen 500 Watt incandescent ceiling lights. An equivalent amount…
A: Customer charge = $8.22/mo Energy Charge - $0.1230/kWh on-peak…
Q: The cost of updating an outdated production process is expected to be $81,000 four years from now.…
A: Given: Future value of updating production (FV)=$81000 Time period (n)=4 years Interest rate=6% To…
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A:
Q: A firm urgently needs a large printer and will either lease a printer at an end-of-year cost of $…
A: If the firm buys the printer, then it will incur a cost of $10000 per year for 6 years (since, the…
Q: An investment carns P50,000 at the end of the 1st year and decreases by P5,000 every year…
A: Investment cost 162049 Earnings 50,000 Cost 5,000 r 10% we are considering all the years…
Q: Problem 3. If the operating cost for a machine is $22,000 per year for years 1 and 2 and then it…
A: Operating cost, year 1 = 22,000 Operating cost, year 2 = 22,000 Operating cost, year 3 = 22,000 +…
Q: The cost of replacing a high-definition television production line in 6 years is estimated to be…
A: The cost of replacing a high definition television production line is given to be $500,000.
Q: The cost of updating an outdated production process is expected to be $81,000 four years from now.…
A:
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- Choose the formula that you will use for the following case: A major repair on the suspension system of a 5-year-old car cost $2000. The cost of periodic maintenance has been $800 every 2 years. If the owner donates the car to charity after 8 years of ownership, what is the quivalent annual cost of the repair and maintenance in the 8-year period of ownership? Use an interest rate of 8% per year, and assume that the owner paid the $800 maintenance cost immediately before donating the car in year 8. AW = -2000 (A/P, 8%, 8) - 800 (A/P, 8%, 2) - 800 (A/P,8%, 4) - 800 (A/P, 8%, 6) - 800 (A/P,8%, 8) PW = -2000 (P/A, 8%, 8) - 800 (P/A, 8%, 2) - 800 (PIA, 8%, 4) - 800 (P/A, 8%, 6) - 800 (P/A, 8%, 8) PW = -2000 (P/F, 8%, 8) - 800 (P/F, 8%, 2) - 800 (P/F, 8%, 4) - 800 (P/F, 8%, 6) - 800 (P/F, 8%, 8) AW = -2000 (A/F, 8%, 8) - 800 (A/F, 8%, 2) - 800 (A/F,8%, 4) - 800 (A/F, 8%, 6) - 800 (A/F,8%, 8)ENGINEERING ECONOMICS Construct a cash fl ow diagram for the following cash flows: $25,000 outflow at time 0, $9000 per year inflow in years 1 through 5 at an interest rate of 10% per year, and an unknown future amount in year 5.How much money could RTT Environmental Services borrow to finance a site reclamation project if it expects revenues of $280,000 per year over a 5-year cleanup period? Expenses associated with the project are expected to be $90,000 per year. Assume the interest rate is 10% per year.
- Construct a cash flow diagram that represents the amount of money that will be accumulated in 7 years from an initial investment of $20,000 now and $3,500 per year for 7 years at an interest rate of 8% per year.S Chemco Enterprises is the manufacturer of Ultra-Dry, a hydrophobic coating that will waterproof anything. Over a 5-year period, the costs associated with the pilot test product line were as follows: first cost of $43,000 and annual costs of $18,000. Annual revenue was $27,000 and used equipment was salvaged for $4,000. What rate of return did the company make on this product? The rate of return the company made on the product is 4.51 %.engineering economics State University tuition and fees can be paid using one of two plans. Early-bird: Pay total amount due one year in advance and get a 10% discount. On-time: Pay total amount due when classes start. If the cost of tuition and fees is $20,000 per year, (a) how much is paid in the early-bird plan, and (b) at an interest rate of 6% per year, what is the equivalent amount of the savings compared to paying when classes start, that is, 1 year later than the early-bird plan?
- RKI Instruments manufactures a ventilation controller designed for monitoring and controlling carbon monoxide in parking garages, boiler rooms, tunnels, etc. The net cash flow associated with one plant for the first 3 years of operation is shown. (a) What do the two rules about sign changes indicate concerning i* values? (b) Find all rate of return values between 0 and 100%. Year Net Cash Flow, $ 0 −30,000 1 20,000 2 15,000 3 −2000A person wants to deposit an unknown lump-sum amount into an investment opportunity 2 years from now that is large enough to withdraw $4000 per year for state university tuition for 5 years starting 3 years from now. The interest rate is 10%/year. The closest amount of the lump sum is:awarded pred Hint Old Southwest Canning Co. has determined that any one of four sterilizing machines can be used in its chili-canning operation. The costs of the machines are estimated; all machines have a 5-year useful life. If the MARR is 25% per year, determine which machine should be selected on the basis of the rate of return (ROR) analysis. Machine 2 3 Select machine First Cost, $ -28,100 -51,000 -32,000 -33,000 Annual Operating Cost (AOC), $ -20,000 -12,000 -19,000 18,000
- A company that manufactures brushes blowers invested $650,000 in an automated quality controlsystem for blower housings. The resultant savings was $160,000 per year for 5 years. If the equipmenthad a salvage value of $50,000, what rate of return per year did the company make? (Initial guess i = 5%)A company that manufactures magnetic flow meters expects to undertake a project that will have the cash flows estimated. At an interest rate of 10% per year, what is the equivalent annual cost of the project? First cost, $ −800,000 Equipment replacement cost in year 2, $ −300,000 Annual operating cost, $/year −950,000 Salvage value, $ 250,000 Life, years 4You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for manufacturing high-pressure hydraulic hoses. The parameters associated with each alternative have been estimated. Which one should be selected on the basis of a present worth comparison at an interest rate of 15% per year? Why is yours the correct choice? Alternative X Y First Cost $-25,000 $-80,000 Maintenance cost, per Year $-13000 $-7000 Salvage Value $3,500 $4,500 Life 5 years 5 years The present wort