A flood control pumping station is being designed. Three possible pumping scheme are proposed and the relevant costs are shown in Table Q 2 What is the most economical range of pumping times in hours/year for each scheme? Figure Q2 shows the frequency of pumping demand. What is the most economical scheme? The cost of capital may be taken as 20%. Table Q 2 Costs of alternative scheme Scheme A в 120,000 Cost of pumps (RM) Life (years) 180,000 230,000 15 15 20 5, 000 220,000 5, 500 200 ,000 20 5, 500 Maintenance per annum (RM) Cost of pipes (RM) Life (years) Cost of pumping (RM/hour) 150, 000 20 20 50 80 80 10% 30% 40% 20% 1000 2000 3000 4000 5000 Annual pumping hours Frequency of pumping

A flood control pumping station is being designed. Three possible pumping scheme are proposed and the relevant costs are shown in Table Q 2 What is the most economical range of pumping times in hours/year for each scheme? Figure Q2 shows the frequency of pumping demand. What is the most economical scheme? The cost of capital may be taken as 20%. Table Q 2 Costs of alternative scheme Scheme A в 120,000 Cost of pumps (RM) Life (years) 180,000 230,000 15 15 20 5, 000 220,000 5, 500 200 ,000 20 5, 500 Maintenance per annum (RM) Cost of pipes (RM) Life (years) Cost of pumping (RM/hour) 150, 000 20 20 50 80 80 10% 30% 40% 20% 1000 2000 3000 4000 5000 Annual pumping hours Frequency of pumping

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

See similar textbooks

Similar questions

Graph on right, shows AW of costs versus number of service years of project X. Based on the graph, economic service life of the project is Larger costs Total AW of costs AW of AOC Capital recovery 3.5 10 Years О 3.5 years O 10 years O 1 year О З уears AW of costs, S/year
ENGINEERING ECONOMY RATE WILL BE GIVEN. WRITE THE COMPLETE SOLUTIONS/EXPLANATION LEGIBLY OR TYPEWRITTEN. GIVE STRAIGHT TO THE POINT EXPLANATION. The world price of zinc has increased to the point where “moth balled” zinc mines in east Tennessee have been reopened because of their potential profitability. (a) What is the estimated annual profit for a mine producing 20,000 tons per year (which is at 100% capacity) when zinc sells for $1.00 per pound? There are variable costs of $30 million at 100% capacity and fixed costs of $10 million per year. (b) If production is 21,000 tons per year, will the mine be profitable?
Costs and revenues (in thousands) 99 15 30 45 60 75 901052013550165 80195 Quantity per period (in thousands) Tools 1 O A
Question Completion Status: QUESTION 7 $ 300 250 200 150 100 50- 07. The minimum Average Variable Cost is O(a) $4 O Q 0 0 2 4 6 8 10 12 14 16 18 20 (b) $5 O (c) $10 O (d) $12 TC Type here to search 7 TVC TFC E 30 25 20 15 10 5 O Click Save and Submit to save and submit. Click Save All Answers to save all answers. 0- 0 2 4 8 10 12 14 16 18 20 Save All Answers MC AC AVC AFC Save and Submit
The figure below shows graphs of the fixed cost function, total cost function and the total revenue function for a certain commodity. 20 8000 7000 6000 5000 4000 Dollars ($) 3000 2000 1000 -10 -1000+ 10 20 30 40 Units (a) What is the break-even point? (x,y) e.g. (295,7650) (b) What are the fixed costs? $ TR Percent of capacity= 50 60 TC If the selling price per unit is $50, and the variable cost per unit is $40: FC 70 80 90 100 enter the answer in the form (c) If the maximum production capacity of the commodity is 110, express the break-even units as a percent of capacity? % (round to two decimal places if necessary)
6. Machine A and Machine B are being considered for the production of a part of a product. The impor- tant differences between the machines are: Machine A Machine B 100 parts/hr 130 parts/hr Production rate Hours available for production Rejection rate 7 hrs/day 6 hrs/day 3 % 10 % The material cost is $6.00 per part, the operator cost is $15.00 per hour, and the variable overhead cost is $5.00 per hour. All defect-free parts produced can be sold for $12 each, and the rejected parts have no value. Assume that the daily demand for this part is large enough that all defect-free parts can be sold. Which machine should be selected? • What should the rejection rate be for Machine B to be as profitable as Machine A?
The owner shop is contemlating adding anew product which will require additional mouthly payment of 6000, variable costs would be brirr. 2 per new product & its selling price is brirr. 7 each How many units must be sold to realize profite of brirr 4000?
A certain masonry dam requires 200,000 m³ of gravel for its construction. The contractor found two possible sources for the gravel with the following data: Source A Source B Average distance, gravel pit to dam site 3 km 1.2 km Gravel cost/m³ at pit ➖➖➖➖➖ P10 Purchase price of pit P800,000 Road construction necessary P450,000 Overburden to be removed at P4.20/m³ 90,000m³ ➖➖➖➖➖➖ Hauling cost/m³/km P4 P4 What is the Total Cost of Source A
The data provided by a company for the year 2021 - 2022 to carry out Break Even Analysis. Provide the results, complete analysis and suggestions. The data is as follows: The fixed cost of the year is 80000.0 R.O The estimated sales are 400000.0 R.O Material Cost / unit 10.0 R.O Production cost / unit 1S 20.0 R.O Transportation & other Misc Cost / unit (Approx) 5.00 R.O Marketing and advertisement cost / unit 3 R.O Each unit is sold at price 50.0 R.O 1. Construct the B.E.P chart on a graph sheet and indicate, B.B.P, M.o.s. 2. Indicate B.E.P & M.o.S after the improvement measures has been taken (With different colours). 3. Determine the profit before and after the measures taken.
You have collected EV, AC, and PV data from your project for a five-month period. Complete the table. Calculate SPIC and CPIC. Compare the cost and schedule performance for the project on a month-by-month basis and cumulatively. How would you assess the performance of the project? (All values are in thousands $) EV EVC AC ACC PV PVC SPI SPIC CPI CPIC April 8 10 7 May 17 18 16 June 25 27 23 July 15 18 15 August 7 9 8
A manufacturing plant wishes to buy a new equipment so the purchasing department did some research on different types of this equipment. In the monthly meeting, the purchasing department presented a report about the two types of equipment that they have found. Pertinent data are as follows: Туре А Туре В First cost P250,000 P350,000 Annual operating cost 30,000 22,000 Annual labor cost 52,000 34,000 Insurance and property taxes 3% 3% Labor/Payroll taxes 4% 4% Estimated life 10 10 If the minimum required rate of return is 19%, 1. What is the annual worth of Type A? [ Select ] 2. What is the annual worth of Type B? [ Select ] 3. Which machine should be selected? [ Select ] >
The owner shop is contemlating adding anew product which will require additional mouthly payment of 6000, variable costs would be brirr. 2 per new product & its selling price is brirr. 7 each How many uint must be sold to realize profit of brirr 4000?