6.50)A chemical company is considering two types of incinerators to burn solid wastegenerated by a chemical operation. Both incinerators have a burning capacity of20 tons per day. The following data have been compiled for comparison of thetwo incinerators:ItemIncinerator AIncinerator BInstalled cost$1,200,000$750,000Annual O&M costs$50,000$80,000Service life20 years10 yearsSalvage value$60,000$30,000Income taxes$40,000$30,000If the firm's MARR is known to be 13%, determine the processing cost per tonof solid waste for each incinerator. Assume that incinerator B will be availablein the future at the same cost.

Process costing is an accounting methodology that traces and accumulates direct costs, and allocates…

20 tons per day. The following data have been compiled for comparison of th two incinerators: Item Incinerator A Incinerator B Installed cost $750,000 $1,200,000 $50,000 Annual O&M costs $80,000 Service life 20 years уears 10 years Salvage value $60,000 $30,000 Income taxes $40,000 $30,000 If the firm's MARR is known to be 13%, determine the processing cost per to of solid waste for each incinerator A cou

20 tons per day. The following data have been compiled for comparison of th two incinerators: Item Incinerator A Incinerator B Installed cost $750,000 $1,200,000 $50,000 Annual O&M costs $80,000 Service life 20 years уears 10 years Salvage value $60,000 $30,000 Income taxes $40,000 $30,000 If the firm's MARR is known to be 13%, determine the processing cost per to of solid waste for each incinerator A cou

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

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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.
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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.
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
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