chap 7

2.4.1 Total Cost in Material SelectionIn many cases, economic selection among materials cannot be based solely on the costs ofmaterials. Frequently, a change in materials will affect the design and processing costs, and shipping costsmay also be altered.Care should be taken in making economic selections between materials to ensure that anydifferences in shipping costs, yields, or resulting scrap are taken into account. Commonly, alternativematerials do not come in the same stock sizes, such as sheet sizes and bar lengths. This may considerablyaffect the yield obtained from a given weight of material. Similarly, the resulting scrap may differ forvarious materials.In addition to deciding what material a product should be made of, there are often alternativemethods or machines that can be used to produce the product, which, in turn, can impact processingcosts.  What could be the factors affecting the cost of materials that one should consider?

I want you to provide me the Cash Flow diagram of the problem. Only cash flow diagram, the solution is already there. Thanks in advance! The annual estimated cash flow is $140,000. The salvage value will be 12% of the initial price after 5 years. The discount rate (r) is 18% Let us assume the initial price of the doughnut machine be X. PV of cash inflows=PV of cash outflows$140,000×PVAF4,18%+.12X×PVF5,18%=X$140,000×2.69006180465+.12X×0.43710921621=X$376,608.652651=X-0.05245310594$376,608.652651=0.94754689406XX=$397,456.479475 The maximum purchase price of the doughnut machine is $397,456.48.

Firm 1 has £10,000 to invest. Firm 2 offers Firm 1 the following proposal: invest £10,000now and get £11,000 back in 12 months. The returns on this investment are guaranteed, and there are no other costs involved? What should Firm 1 do? b. Firm 1 is considering investing their profit into any of the following two projects. Investment appraisal techniques have been used, and the following results found:   Project A Project B Internal Rate of Return 6% 8% Net present value 88000 61000  which project should Firm 1 select?

Pls help with below homework. A particular apartment building has changed ownership three times in 10 years. and the price has increased each time a minimum of 23%. Price increases for similar apartment buildings have averaged 17% per sale in that time. Is a licensee in Illinois justified in guaranteeing a prospective buyer of this apartment building at least an 8% profit on the resale of the property? Select the correct option from below : A) Yes, because this apartment building has a proven profitability history. B) Yes, because the average price increase for similar apartment buildings is more than twice the target amount. C) No, because the licensee should never guarantee a future profit of any amount. D) No, because past sales figures cannot reliably predict future prices.

kuzukuzu12121@outlook.com just sent here I NEED EXCEL FİLE. Determine the NPW, AW, FW and IRR of the following engineering project.    Initial Cost ($400,000) The Study Period 15 years Salvage (Market) Value of the project 15% of the initial cost Operating Costs in the first year($9,000) Cost Increase  3% per year Benefits in the first year $40,000  Benefit Increase 9% per year MARR 8% per year  Is the Project acceptable? WHY?

A manufacturer plans to introduce a new type of shirt based on the following information. The selling price is $57.00; variable cost per unit is $18.00; fixed costs are $7800.00; and capacity per period is 500 units. a) Calculate the break-even point             (i) in units             (ii) in dollars (2 decimal places)             (iii) as a percent of capacity b) Draw a detailed break-even chart. (You do not have to submit this part; just draw it for your own practice.) c) Calculate the break-even point (in units) if fixed costs are reduced to $7020.00 d) Calculate the break-even point (in dollars) if the selling price is increased to $78.00

NO tables, please, only formulas correct answers are: (i) n=12×5=60(months) --> ?0 = £16,775 (ii) L12 = £15,293.38 (iii) a) I13 = 98.4 and C13 = 161.6 --> L13 = L12 − C13 = 15,131.79 b) I14 = 97.36 and C14 = 167.64

The ore of a gold mine in the province contains, on average, 0.5 ounce of gold per ton. Method A ofprocessing costs 150Php/ton and recovers 93% of the gold, while Method B costs only 120Php/tonand recovers 81% of the gold. If gold can be sold at 1,200/ounce, which method is better and by howmuch?a. Method A, by 43Phpb. Method A, by 42Phpc. Method B, by 42Phpd. Method B, by 43Php

Question 7 (Breakeven Analysis)  You decided to sell Only coffee using Nespresso machine during Ramadan The Nespresso Machine Cost is 3,000 SAR Every cup of coffee required one brown sugar that cost 0.5 SAR, one disposable cup costs 1.5 SAR, and one coffee capsule costs 3 SAR If you sell one coffee for 10 SAR   Option 1 Option 2   No Employee Sales quantity = 1500 per month Selling Price 10 SAR per coffee One more Employee and his salary is 4000 Expected sales quantity = 2500 per month Selling Price 10 SAR per coffee What is the breakeven quantity?     What is the breakeven quantity?   What is the profit?      What is the profit?    Which option is better?

Give typed explanation only The difference between the present worth of the cash flows is referred to as the net future worth (NFW) True Or False?

please help, project management 1. Considered the following table. All estimated duration times are in days, and the network proceeds from Node 1 to Node 7: the picture info is downloaded below for this part a) Draw an AOA network diagram representing the project. Put the node numbers in circles and draw arrows from node to node, labeling each arrow with the activity letter and estimated time. b) Identify ALL of the paths on the network diagram and note how long they are.  c) What is the critical path for this project and how long is it? d) What is the shortest possible time needed to complete this project? 2. Enter the information from the previous task into MS Project. View the network diagram and critical task report to see the critical path. Generate the network diagram view and critical task report.

Initial Cost: ($300,000)The Study Period: 15 yearsSalvage (Market) Value of the Project: 12% of the initial costOperating Costs in the first year: ($7,500)Operating Costs  increase by 5% per yearBenefits in the first year: $30,000 Benefit increase by 13% per yearMARR: 9% per year   1)Determine the NPW, AW, FW of the project.  2) Is the Project acceptable? WHY?

A firm is considering the development of several new products. The products under consideration are listed here; the products in each project group are mutually exclusive. Project group Products Development costs (P) Net annual cash flow (P) A A1 500,000 90,000 A2 650,000 110,000 A3 700,000 115,000 B B1 600,000 105,000 B2 675,000 112,000 C C1 800,000 150,000 C2 1,000,000 175,000 At most one product from each group will be selected. The firm has MARR of 10% per year and a capital investment budget limitation on development costs of P2,100,000. the life of all products is assumed to be ten (10) years. Assume no market values at the end of 10 years.

There is no D* for this Scenario 1 situation: p =40 − 0.2D and TC= $100 + $50D. True False

1. Which of the following statements is incorrect?(a) Economic decisions are time invariant.(b) Time and risk arc are the most important factors in any investment evaluation.(c) For a large-scale engineering project, engineers must consider the impact of the project on the company’s financial statements.(d) One of the primary roles of engineers is to make capital expenditure decisions. 2 When evaluating a large-scale engineering project, which of the following items is important?(a) Expected profitability(b) Timing of cash nows(c) Degree of financial risk(d) All of the above 3. Which of the following statements defines the discipline of engineering economics most closely?(a) Economic decisions made by engineers.(b) Economic decisions related to financial assets.(c) Economic decisions primarily for real assets and service from engineering projects.(d) Any economic decision related to the time value of money. 4.Which of the following statements is not one of the four fundamental…

BVM manufactured and sold 25,000 small statues this past year. At that volume, the firm was exactly in a breakeven situation in terms of profitability. BVM’s unit costs are expected to increase by 30% next year. What additional information is needed to determine how much the production volume/sales would have to increase next year to just break even in terms of profitability?                                                                          (a) Costs per unit (b) Sales price per unit and costs per unit (c) Total fixed costs, sales price per unit, and costs per unit (d) No data is needed, the volume increase is 25, 000 + 25, 000(0.30) = 32, 500 units.

22. An architect produces a certain construction material at a labor cost of P 16.20 per piece, material cost of P 38.50 per piece and variable cost of P 7.40 per piece. The fixed charges on the business is P 100,000.00 a month. If he sells the finished product at P 95.00 each, how many pieces must be manufactured in each month to break even?

Solve for q, AVC - MC = 0 AVC = 10 - 0.03q + 0.00005q^2 MC = 10 - 0.06q + 0.00015q^2

Prob.#1 At the Motorola plant in Mesa, AZ, it is desired to determine whether one-inch-thick insulation or two-inch-thick insulation should be used to reduce heat loss from a long section of steam pipe. The heat loss from the pipe without any insulation would cost $2.00 per linear foot per year. The one- inch-thick insulation option will eliminate 88% of the heat loss and will cost $0.60 per foot. Two-inch insulation will eliminate 95% of the heat loss and will cost $1.10 per foot. The steam pipe is 1,000 feet in length and will last 10 years. MARR is 6% per year. Which insulation thickness should be recommended? Apply Equivalent Uniform Annual Worth technique. please show all work for each type.

Problem #2 (2/10): A new packaging machine will save Greene Cheese Ltd. $3000 per year in reduced spoilage, save $5000 per year in labour, and save $4000 per year in packaging material. The new machine will have additional expenses of $1500 per year in maintenance and $500 per year in energy. If it costs $68,000 to purchase, what is its payback period? Assume that the savings are earned throughout the year, not just at year end

Define opportunity cost and explain its relevance in engineering project decision-making. Provide a real-world example of how considering opportunity cost can influence the choice between alternative projects or investments.

Plz complete solution all part a and b

A pharmaceutical company has spent $500 million to date working on a blood pressure treatment. It has to decide whether to spend another $500 million today to get final approval from the FDA in two years. Once approved, expected profits will be $50 million per year for the foreseeable future. The firm’s cost of capital is 5%. -Should the firm proceed? (Hint: use the perpetuity formula used to value projects found in the readings to find the value of the profit stream that starts in two years, and then discount that.)

1) When and why should a utility approach be applied?2) Explain how utility could be used in a decision where performance is not measuredby monetary value.3) What are the key traits and differences of Project and Review Technique(PERT)/Critical Path Method (CPM)?4) Why perform sensitivity analysis?5) Explain how and why all predecessor activities must be considered when finding theearliest start time

The following information for 2021 and 2020 is presented for BuyRite:     December 31   Assets Current assets: 2021 2020 Cash $     42,000 $     54,000 Accounts receivable 580,000 445,000 Inventory 5,010,000 4,950,000 Prepaid expenses       84,000        79,000 Total current assets 5,716,000 5,528,000 Building and equipment, net  1,097,000   1,095,000 Total assets $6,813,000 $6,623,000 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable     $ 605,000     $ 628,000 Bank loan payable 679,000 625,000 Other accrued payables     215,000    315,000 Total current liabilities 1,499,000 1,568,000 Long-term debt  1,729,000 1,791,000 Total liabilities 3,228,000 3,359,000 Stockholders’ equity: Common stock   1,307,000   1,307,000 Retained earnings  2,278,000  1,957,000 Total stockholders’ equity  3,585,000  3,264,000 Total liabilities…

Apple Inc.CONSOLIDATED BALANCE SHEETS(In millions, except number of shares which are reflected in thousands and par value)September 28, 2019 September 29, 2018ASSETSCurrent assetsCash and cash equivalents $ 48,844 $ 25,913Marketable securities 51,713 40,388Accounts receivable, net 22,926 23,186Inventories 4,106 3,956Vendor non-trade receivables 22,878 25,809Other current assets 12,352 12,087Total current assets 162,819 131,339Non-current assetsMarketable securities 105,341 170,799Property, plant and equipment, net 37,378 41,304Other non-current assets 32,978 22,283Total non-current assets 175,697 234,386Total assets $ 338,516 $ 365,725LIABILITIES AND SHAREHOLDERS’ EQUITYCurrent liabilitiesAccounts payable $ 46,236 $ 55,888Other current liabilities 37,720 33,327Deferred revenue 5,522 5,966Commercial paper 5,980 11,964Term debt 10,260 8,784Total current liabilities 105,718 115,929Non-current liabilitiesTerm debt 91,807 93,735Other non-current liabilities 50,503 48,914Total non-current…

Which statement is not true with respect to estimating the economic impacts of proposed engineering projects? (a) Order-of-magnitude estimates are used for high-level planning. (b) Order-of-magnitude estimates are the most accurate type at about –3 to 5%. (c) Increasing the accuracy of estimates requires added time and resources. (d) Estimators tend to underestimate the magnitude of costs and to overestimate benefits.