3. Compare the following 2 altrernatives using the Benefit/Cost Ratio method in terms of the Net Equivalent Uniform Annual Worth method. Note: for the present worth method, the analysis period must be the same for both alternatives (i.e., 14 yrs). Alt. A B Construction cost $ 1,450,000 1,600,000 Benefits $/yr 580,000 610,000 Salvage $ 100,000 200,000 Service Life (yrs) 7 14
Q: 10. Total economic surplus The following graph plots the supply and demand curves in the market for…
A: In terms of economics, the consumer surplus is the difference between the price a consumer pays for…
Q: What do you need to open a bank account, if you are under the age of 18? Please help with this…
A: Connecting to the banking system can be done by opening a bank account with any one of the…
Q: "Suppose the money demand function is ▪ Md/P = 1000+ 0.2Y - 1000 (r + ле). ¹(a) Calculate velocity…
A: The Quantity Theory of Money (QTM) is a widely accepted economic theory that explains the…
Q: Part C: Using Price Indexes The following question has 5 parts (a.-e.), parts d. and e. will be…
A: Inflation rate between 2 periods t & t+1 is given as = [(price index in t+1 - price index in t)/…
Q: Which of the following is (are) likely to lead to an increase in the demand for US bonds? a. All of…
A: Bonds are financial instruments used to raise capital by governments, corporations, and other…
Q: The addition of a turbocharger to a small V-6 engine that gets 18 miles per gallon of gasoline can…
A: A great measure and crucial tool that benefits your organisation in numerous ways is the break-even…
Q: 1. A company is considering two alternatives with regards to an equipment which it needs. The…
A: Salvage value is the determines the resale value of an asset at the end of its useful life. It is…
Q: Consider a linear demand curve D(p) = 60 - 3p. 1. Draw this demand curve on a graph. 2. When the…
A: demand refers to the consumer's desire to purchase a particular good or service.
Q: To maximize profits, a firm uses a fixed amount of capital and varying amounts of labour in its…
A: firm hires worker when the contribution of a worker is equal to the cost of a worker. If firm pay to…
Q: 1.The economy of Country X is in equilibrium at full employment. (a) Draw a correctly labeled graph…
A: Equilibrium in an economy is the point where the aggregate supply of that economy is equal to the…
Q: Why do problems related to allocation of resources in an economy arise?. Explain.
A: The process of choosing how to divide limited resources, such as land, labor, capital, and natural…
Q: discuss the political system in germany, human development index, political freedom index, economic…
A: Germany is a federal parliamentary republic consisting of 16 states with a multi-party system. The…
Q: Assume the economy begins with potential real GDP = $13.7 trillion, while actual real GDP = $14…
A: The AD/AS model shows the relationship between the aggregate quantity of output and the general…
Q: The coconut oil demand function (Bushena and Perloff, 1991) is Q=1,200-9.5p+16.2pp +0.2Y, where Q is…
A: Introduction Price elasticity evaluates how responsively demand or supply for a good is to a change…
Q: Consider the following cash flow diagram: $10 $10 $10 $10 If the interest rate is 10% per period,…
A: The future value of a series of cash flows will be computed as total value of the future amount of…
Q: Using the homogeneity of indirect utility, which of the following cannot be an indirect utility…
A: The homogeneity of the indirect utility function states that if both income and prices are…
Q: Discuss indications for business innovations according to Peter Drucker and further elucidate how…
A: Business innovation is the process by which a company introduces new concepts, workflows, methods,…
Q: Economic growth is shown in the AS-AD model as a Select one: O a. rightward shift in the short run…
A: As per the guidelines, we are only allowed to solve one question at a time in case of multiple…
Q: he production function for a product is given by q=100KL. Its marginal product functions are…
A: Given information: q =100KL ------> Production function. MPL = 100K -------> Marginal product…
Q: The money demand curve is a. Downward sloping because the opportunity cost of holding money rises…
A: Unlike the money demand curve, which shows the connection between the amount of currency needed and…
Q: Exporting unemployment refers to: (A) Effect of a recession on international trade (B) Negative…
A: Exporting employment is a phenomenon where a country's trade surplus results in a negative impact on…
Q: (a) What are the general equilibrium prices of coffee and tea initially? (b) What are the general…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Quantity = 0 4 8 12 16 20 Price = 10 8 6 4 2 0 If the purchase price is set…
A: We can find consumer surplus by subtracting the price consumers are willing to pay for a quantity…
Q: Explain the difference between positive and normative analysis. Provide an example of a normative…
A: Modern economics: There are two main approaches used to describe different modern economic phenomena…
Q: • How does celebrity endorsement influence consumers' purchase decisions of clothing products in the…
A: Celebrity endorsement is a popular marketing strategy that involves the use of a celebrity to…
Q: A town in Wyoming wants to drill a geothermal well to provide district heating steam and hot water…
A: IRR is a rate of discount that makes the net present value (NPV) for the entire cash flows equal to…
Q: The following table contains data for Mindalion for the year 2019. GDP $200 Income earned by…
A: GDP is the gross domestic product NNP is the net national product. Gross minus depreciation is…
Q: Isabella and Antonio are auto mechanics. Isabella takes 4 hours to replace a clutch and 2 hours to…
A: Absolute advantage occurs when a country can produce more of a good with the given resources. A…
Q: Randy lives on Cheetos and chocolates. The price of Cheetos is 3 dollar per bag and the price of…
A: Consumer utility refers that satisfaction that a consumer obtains from his or her consumption of…
Q: QUESTION 4 Bringing the nations of the world to act together in addressing environmental issues that…
A: Economics refers to the study of scarcity and its implications for the use of resources, production…
Q: 5. The first cost of a machine is Php 1,800,000 with a salvage value of Php 300,000 at the end of…
A: Given, First cost (FC) = $1,800,000Salvage Value (SV) = $300,000Number of years (n) = 6
Q: efer to Table 4.3 “The Model’s Prediction for Per Capital GDP” on page 83. Why is the “observed per…
A: GDP: GDP is the sum of the value of all end commodities produced within the country in a year. The…
Q: The graph shows the demand, marginal revenue, marginal cost, and average total cost curves of La…
A: In monopolistic competitive market there are many firms producing differentiated goods. Firms have…
Q: The American College of Physicians has a bold vision for the future:…
A: The healthcare system refers to the network of organizations, institutions, and individuals that…
Q: Did you use Shepard's Lemma to derive X?
A: Shephard's lemma is extremely important for its uses in firm theory and customer choice. The lemma…
Q: If the goal of government is to influence consumer behavior concerning one good, it is most…
A: Assuming the objective of the government is to impact consumer conduct really, it requirements to…
Q: a. Suppose that the expected sales in each industry are equal to q. Derive an expression for л, the…
A: Given: Consumers: The economy is populated by N consumers, each of them demanding N different goods.…
Q: Restaurant Pricing. Consider a restaurant that charges $10 for all you can eat and has 25 customers…
A: The importance of microeconomics may be observed in the fact that it provides a framework for profit…
Q: The economic concept of "value" is a function of costs of production labor costs calculus statistics…
A: The economic concept of value is worth that an individual or society attaches to a particular good…
Q: Draw a correctly labeled money market graph. Label your money supply curve MS, your money demand…
A: The money market refers to the part of the financial market where short-term financial instruments…
Q: Using the AD/AS model, what would be an explanation for observing an increased price level and a…
A: Business cycles provides the details on a declining, slowing down, and speeding up of the economy,…
Q: What is the equation for private disposable income? a. Y + NFP + INT – T b. T – TR – INT c. Y +…
A: Since you have posted multiple questions, we will provide the solution only to the first question as…
Q: Interest rates are important in explaining economic activity. A. Using a correctly labeled graph of…
A: Economics refers to the study of scarcity and its implications for the use of resources, production…
Q: Relate your answer to the International parity condition: Why the McDonald’s Big Mac is priced…
A: Introduction An informal way to compare the purchasing power parity of two currencies is through the…
Q: #86. In the table shown, what would be the result if the price were $8? A. A surplus of 30 units…
A: Answer 86 When price=$8 Quantity Demanded=20 units Quantity Supplied=80 units Since the quantity…
Q: The equipment bought at a price of Php 450,000 has an economic life of 5 years and a salvage value…
A: Under this method, the book value of the asset is reduced by a fixed percentage each year, rather…
Q: John and Belle consume only two goods, x and y. They have strictly convex preferences and no kinks…
A: Marginal utility: The utility can be derived from the satisfaction earned from consuming different…
Q: What is the elasticity of substitution for the production function f(K, L) = K¹/4 [³/4? (a) o = (b)…
A:
Q: A government policy that would reduce the saving rate is ? a) giving tax breaks to increase…
A: The rate of savings will be computed as the percentage of money taken from personal income and will…
Q: ✓ Question Completion Status: O 560 O 620 QUESTION 4 For a non-competitive firm with a demand curve…
A: Profit is maximised at a point effete marginal revenue is equal to marginal cost and price is…
interest rate = 5% / yr. Please no excel work, I want to see how it is solved BY HAND. Thanks
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- 1 - Assuming an interest rate of 3% per year (effective), calculate the feasibility of each option. You can use either Present Worth Analysis or Equivalent Uniform Worth Analysis. In this part, your calculation should be done without the use of Excel. Show your equations and the results. 2 - Using linear interpolation, calculate the rate of return for each option. Here, your calculation should be implemented using Excel. 3 - Assuming that the initial equipment can be depreciated over the course of 20 years and usingDouble Decline Balance Depreciation, calculate the depreciation schedule for the equipment. 4- Assume a state income tax of 5%. Calculate the after-tax cashflow for each option assuming the depreciation used. Use only the depreciation on question 2.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.Compute for the Annual Worth of MEA1 and explain. Compute using the Annual Worth formula and WITHOUT using Excel sheets. Thank you. MARR = 12%
- 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?Calculate the conventional benefit-cost ratio for the alternative: Initial Investment 250000 Revenues 80000 Costs 22000 Salvage Value 50000 Useful life 9 MARR 0.1.Margaret has a project with a £ 28,000 first cost that returns £ 5,000 per year over its 10-year life. It has salvage value of £ 2,900 at the end of 10 years. If the MARR is 11 %, (Use 5 significant figures for your calculations, and round your answers to the nearest dollar. Indicate losses as a negative value.) (a) What is the present worth of this project? (b) What is the annual worth of this project? (c) What is the future worth of this project after 10 years?
- The workshop equipment that costs $3816, has a life of 10 years and no salvage value. The capitalized cost in dollar if money worth 10% is: O 9453.96 O 8118.36 O 6210.36 O 5256.36 O 4302.36 Clear choiceThree different alternatives shown in table below are being considered by Kal Tech Engineering systems. Assume that alternatives X and Z are replaced at the end of their lives. Data Alternative X Alternative Y Alternative Z Initial Cost $6,000 $1,000 $1,500 Uniform Annual Benefits $810 $125 $ 230 Useful Life in Years 20 ∞ 10 MARR (Interest rate) 12% Refer to the data above.The NPW of alternative “X“ is given by the following. Group of answer choices $84.5 $49.89 $53.4 $57.23 $39.78Net present value (NPV) of the project =Single payoff x PVIAF (10.20%, 9 years) - initial outlay = $6,947 x 0.42340 - $2,182 = $759.39 What's the equation for the bolded item?
- Three different alternatives shown in the table below are being considered by Kal Tech Engineering systems. Assume that alternatives X and Z are replaced at the end of their lives. Data Alternative X Alternative Y Alternative Z Initial Cost $6,000 $1,000 $1,500 Uniform Annual Benefits $810 $125 $ 230 Useful Life in Years 20 ∞ (infinity) 10 MARR (Interest Rate) 12% Refer to the data above. The most desirable alternative is ________. Group of answer choices Do nothing Alt. Z Alt. Y Alt. X Quiz saved at 11:56pm Submit Quizdont use excel i will 5 upvotes. Assuming a firm’s weighted average cost of capital is 12%, what is the discounted payback period of the following project? Year Net Cash Flow 0 -$375,000 1 $200,000 2 $200,000 3 $350,000 Group of answer choices a. 2.40 years b. 2.15 years c. 2.21 years d. 1.88 yearsJason decides to buy a Camaro for $60,000 after graduating college. Jason retires in 35 years and his Camaro is worth $5,000. Jessica decides to invest $60,000 after graduation and puts that money into retirement. The average rate of return is 6.5% per year. At 35 years, how much more money does Jessica have over Jason? Group of answer choices A. $578,735 B. $453,665 C. $543,735 D. ONE MILLION DOLLORSZ