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- 6. The City of Cebu plan to improve the water system distribution of the city. The estimated cost of the improvement is about P 5,000,000. To raise the amount, the city decided to sell bonds to finance the said project. The bond rate is fixed at 5% payable yearly. The interest rate of the money is at 10% compounded yearly. The bond is redeemable 20 years from now at its face value. How much should the selling price of the bond as to attract buyers.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…Profit is $132 000, accounts payable increased $10 000 during the year, inventory decreased $6000 during the year, and accounts receivable increased $12 000 during the year. Using the indirect method, what is net cash provided by operations?a. $104 000.b. $116 000.c. $124 000.d. $136 000.
- Solve this economic all subparts,a, c and d______6 Mauro Products distributes a single product, a woven basket whose selling price is $17 and whose variable expense is $14.96 per unit. The company's monthly fixed expense is $3,672. a. Solve for the company's break-even point in unit sales using the equation method. b. Solve for the company's break-even point in dollar sales using the equation method and the CM ratio.Question Content Area If $1,134,000 of 11% bonds are issued at 102 1/2, the amount of cash received from the sale is a. $1,162,350 b. $1,258,740 c. $850,500 d. $1,134,000
- Problem Solving. Solve the following problems completely. 4. Atty. Gacayan invested P280, 000 which will be used in a project that will produce auniform annual revenue of P180,000 for 5 years and then have a salvage value of 16% ofthe investment. Out-of-pocket costs for operation and maintenance will be P80,000 peryear. Taxes and insurance will be 3% of the first cost per year. Atty Gacayan expectscapital to earn not less than 30% before income taxes. Determine if the investment is goodand Calculate the following:a. Calculate using Rate of Return Method.b. Payback period of the investment.Plz, solution all part a and. bA generous alum would like to establish an endowment that would sponsor a student organization's conferences in perpetuity. A one-time cost of $550,000 must be paid today to purchase supplies for the conference. The conference is held once every four years and costs $120,000. The alum's gift is invested in an account that earns 2.5% annually. How much would the alum need to place in the endowment to be able to sponsor the student organization's conferences?
- A city has developed a plan to provide for future municipal water needs. The plan proposes an aqueduct that passes through 150 meters of tunnel in a nearby mountain. Two alternatives are being considered. The first proposes to build a full-capacity tunnel now for $556 000. The second proposes to build a half capacity tunnel now and a second identical half-capacity tunnel in 20 years. Each of half capacity tunnel costs $402 000. The maintenance cost of the tunnel lining for the full-capacity tunnel is $40 000 every 10 years, and for each half-capacity tunnel it is $32 000 every 10 years. The friction losses in the half-capacity tunnel will be greater than if the full-capacity tunnel were built. The estimated additional pumping costs for each half-capacity tunnel will be $2 000 per year. Using present worth method and a 7% interest rate, which alternative should be selected? Give typing answer with explanation and conclusionA capital gain is calculated by the equation: (a) Capital gain = book value – selling price (b) Capital gain = book value – first cost (c) Capital gain = market value – selling price (d ) Capital gain = selling price – first costFind the IRR Investment: $10 million Annual Revenue: $103 million Breakdown: a) Ticket sales: $68 millionb) VIP Memberships: $13 million c) Concession revenues: $22 million Annual Costs: $75 million Breakdown: a) Maintenance: $35 millionb) Salaries: $8 millionc) Concession costs: $6 million d) Event Operations: $10 million e) Overhead: $16 million Major Maintenance Update every 20 years: $20 million