A company plans to purchase new cut-and-finish equipment. Two manufacturers offered the estimates as following: Vendor A has a first cost of $15,000, an annual operating cost of $3,500, a salvage value of $1000, and a service life of 6 years. Vendor B has a first cost of $18,000, an annual operating cost of $3,100, a salvage value cof $2,000, and a service life of 9 years. The vendor should be selected & present worth is A,$45,036- B,$41,384- B,539,077- A,540,595-
Q: Provide example on how individuals may get finding from the capital markets?
A: Capital market is the market where long term funds are raised by individuals , firms , companies . I...
Q: What is the formula for the price elasticity of demand? The percentage change in the A) quantity dem...
A: Price elasticity can be divided into: 1. Perfectly elastic demand: When a small change in price caus...
Q: 1. The objective of economic development is to raise the levels of living, it means a. provide addit...
A: 1. Economic development refers to initiatives, policies, or actions aimed at improving a community's...
Q: In a perfectly competitive market A) only producers are price makers. B) all producers and con...
A: Perfect competition is said to exist when there is a large number of buyers and sellers of a commodi...
Q: long run on consumption, savings, investment,
A: Y= F(K,L) where K=K and L= L impling K capital and Labour L are taken to be constant. Therefo...
Q: In the rural area of a large agricultural-based economy in which corn is the staple food, there are ...
A: Answer-
Q: Suppose that a high school student is preparing to take the SAT exam. Explain why his or her eventua...
A: It's a variable whose values are determined by the results of a random event. Random variable, rando...
Q: A company has determine the price and the monthly demand of its products are related by the equation...
A:
Q: Differentiate exploratory research and specific research in your own words
A: Economists gave their findings and theories based on a research that they make using specfiic inform...
Q: A series of cash flows will occur in sequence as follows: present time, $100, the end of one (1) yea...
A: Given cashlfow for 3 yearsinterest rate = 8 %where present value = cashflow/ (1 + rate)^time
Q: . Pankti is risk averse. Without insurance, she receives income of $40,000 with a prob ability of .0...
A: Given , Probability of getting 40,000 = 0.02 Probability of getting 60,000 = 0.98 Pankti should pu...
Q: The market for N-95 masks is perfectly competitive. Market Demand is given by Q=391-2P and Market Su...
A: Given : Market demand : Q = 391 - 2 P Market supply : Q = 4P
Q: What is Bill's opportunity cost for a pound of berries? Enter a value without commas, symbols or wor...
A: Opportunity cost in general terms can be understood as the benefits of a good or commodity lost due ...
Q: You borrow $5000 from a family member and agree to pay it back in 5 months. Because you are part of ...
A: The interest rate is the percentage of a loaned sum that a lender charges the borrower as interest, ...
Q: 3. Briefly discuss the following statement, explaining what is right or wrong about it: "The average...
A: 3) The statement explains that the current account balance of all countries in the world is in defic...
Q: 80 Market for Teapots 72 Supply I Price (Dollars per teapot) 16 64 Quantity Demanded 310 Quantity Su...
A: Given:- Price(Dollars per teapot)=16 Quantity demanded(teapots)=310 Quantity supplied(teapots)=100 K...
Q: 1. Assume that the production of wine requires land (T) and labor (L) and it follows diminishing ret...
A: The diminishing returns to scale means that each added input (labor) will result in a decreasing rat...
Q: In Michael Porter's Diaond Model of National Advantage, when a country has 6 months with night and 6...
A: When talking about Michael Porter's Diamond Model, it can be said that it is an attempt to explain t...
Q: Mr Dela Cruz is going to buy a new machine for manufacturing its product: Machine A has a first cost...
A: Given; For Machine B First cost= P140000 Salvage value= 10000 Annual maintenance cost= 2500 Rate; r=...
Q: Question 9 An increase in the number of buyers in the market for fidget spinners will result in a fo...
A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...
Q: Bruno is a landowner and Angela is a farmer who pays a share of her grain output to Bruno for the us...
A: A subset of the technically feasible set is the economically feasible set.
Q: The graph shows the domestic demand and domestic supply for soybeans. Assume this country is open to...
A: Answer: If the tariff of $10 is imposed then the world price will increase by 10. According to the ...
Q: List all the contingent plans of each player.
A: Contingent plan refers to the possible actions available based on the other players choice. Since Al...
Q: What is the concept of "market" according to Milton Friedman and what is the role of Goverment in th...
A: The place where there is the purchase and sale of goods and services between buyers and sellers for ...
Q: cal bakeries with cost function C(x)= 4x operate in a village where the demand for bread is x(p) = 1...
A: Cartel firm tends to behave like a monopoly firm. Since here both firms have a similar cost structur...
Q: 1) What should be the selling price per unit, if the break-even point should be brought down to 10,0...
A: Disclaimer :- as you posted multiple questions we are supposed to solve only the first one as per g...
Q: With an example, illustrate how the multiple deposit contraction process influences money supply.
A: Deposit Contraction - If banks have extra reserves, they can lend more and expand the money supply. ...
Q: If a country can produce more of a good than other countries with a given amount of resources, we sa...
A: Absolute and comparative advantage are too very important concepts of International trade as they in...
Q: Assume you can work as many hours you wish at £12 per hour (net of tax). If you do not work, you hav...
A: Here there is a situation where we can work as many hours as we can want at the rate of £12 per hour...
Q: Free trade is beneficial only if a country is more productive than foreign countries.
A: When goods and services could be sold and bought without having any restrictions or tariffs then it ...
Q: The Fed is very concerned about the stability of financial markets. When individuals and firms are c...
A: Introduction: Financial markets, in general, refer to any marketplace where securities are traded, s...
Q: Imagine that you are a financial manager for a medium-sized company. Describe how you would use capi...
A: We show that There àre various ways to use a budget that helps investment decisions. These stràtegie...
Q: The market price of cheeseburgers in a college town decreased recently, and the students in an econo...
A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new ques...
Q: 3. An industry is subject to agglomeration economies (and diseconomies). The profit per firm is £100...
A: Firms cluster in cities to take advantage of external economies of scale in production, which arise ...
Q: The demand curve is also the ... O A. total benefit curve. B. total cost curve. C. marginal deadweig...
A: The quantity of an item that consumers are willing and able to acquire at various prices during a ce...
Q: Marginal cost function (C'(q)) and marginal yield function ('R(q)) to extract a smartphone is as fol...
A: Marginal cost is the additional cost incurred in order to produce an additional unit of output.
Q: Which of the following events will lead to a rise in the level of national income in an economy? ...
A: Which of the following cases will lead to a rise in the national income in an economy?
Q: Look up the current price of oil in a commodity index. (Ex. stock market). What trends do you see (L...
A: Crude oil is the source of various fuels. Gas stations are the stations like petrol pumps where nat...
Q: If the price of streaming movie rental is $7.00, Darrin will rent 4 movies in a month. If the price ...
A: In the question above, it is given that : If the price of streaming movie rental is $7.00, Darrin w...
Q: 1.In 2015, the three world's largest exporters in descending order were A) China, Japan, USA B...
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any ...
Q: 6. A nation has a population of 260 million people. Of these, 60 million are retired, in the militar...
A: Here we calculate the Unemployment rate by using the given information so the calculation of the fol...
Q: The market for N-95 masks is perfectly competitive. Market Demand is given by Q=447-2P and Market Su...
A: A price floor is imposed by government on how low a price can be charged for a product, good, commo...
Q: 1.5) What are the financial benefits are reported by the organization after the successful implement...
A: Many organisations produce the goods with sustainable development. The organisation which provide he...
Q: Table 1 Berries (Ibs.) Fish Rob 25 60 Bill 40 80 Rob Crusoe and Bill Friday spent their week-long va...
A: Opportunity cost refers to the loss occurred by giving up best alternative while making a decision.
Q: There are three people who consume public and private goods. As usual, the public good is x, and rep...
A: Given that; The utility function of the person 3 is u3(x,y3)=3Inx+y3 Budget constraint =x+y3=10 Pub...
Q: Use the table below to answer questions about a firm's hiring decision. Labor (workers) Output (unit...
A: Marginal product of labour means a unit change in labour how much total product will change . It sh...
Q: 1980 7.2 63.6 168.9 1990 6.3 66.4 190.0 2000 3.9 67.0 213.7 2010 138.4 64.8 236.8
A: The labour force, or currently active population, comprises all persons who fulfill the requirements...
Q: is a levered bank, while Is an unlevered bank. Assume that both banks offer an annual rate of 4% on ...
A: Hi! thanks for the question but as per the guidelines, we can answer up to three parts at one time. ...
Q: A woman arranges to repay a P10,000 bank loan in 10 equal payments at a 10% effective annual interes...
A: * SOLUTION :- As per given data the calculations are shown below.
Step by step
Solved in 2 steps
- 6. Electrical switch manufacturing companies must choose one of three different assembly methods. Method A will have an initial cost of $40,000, annual operating costs of $9,000, and a 2 year lifetime. Method B will cost $80,000 to purchase and will have an annual operating cost of $6,000 over its 4 year service life. Method C will cost $130,000 initially with an annual operating cost of $4,000 over its 8 year life. Methods A and B will have no salvage value, but method C will have a salvage value for some equipment that is approximately $12,000. Which method to choose? Use present value analysis at an interest rate of 10% per annum if the alternatives are mutually independent A. A and B B. B and C C. C D. There is no economically feasible solution Please solve based the option max 15 minutes ASAP1. Two methods can be used for producing expansion anchors. Method A costs $70,000 initially and will have a $15,000 salvage value after 3 years. The operating cost with this method will be $30,000 per year. Method B will have a first cost of $135,000, an operating cost of $8,000 per year, and a $40,000 salvage value after its 3-year life. At the MARR of 12% per year, which method should be used on the basis of a present worth analysis?You and your partner have become very interested in cross-country motorcycle racing and wish to purchase entry-level equipment. You have identified two alternative sets of equipment and gear. Package K has a first cost of $160,000, an operating cost of $7000 per quarter, and a salvage value of $40,000 after its 2-year life. Package L has a first cost of $210,000 with a lower operating cost of $5000 per quarter, and an estimated $26,000 salvage value after its 4-year life. Which package offers the lower present worth analysis at an interest rate of 8% per year, compounded quarterly?
- No written by hand solution An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $30,000, an annual operating cost (AOC) of $4,000, and a service life of 2 years. Method B will cost $70,000 to buy and will have an AOC of $3,000 over its 4-year service life. Method C costs $115,000 initially with an AOC of $3,000 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 6% of its first cost.2. Two methods can be used for injection molding insulin injection pens. Method A Molding costs $120,000 initially and will have a $30,000 salvage value after 5 years. The operating cost with this method will be $20,000 per year. Method B Molding will have a first cost of $150,000, an operating cost of $15,000 per year, and a $40,000 salvage value after its 6 - year life. Determine which method should be selected at a MARR of 10%. - Use Present Worth Analysis Solve in Excel. A manager has been presented with two proposals for automating a production process. Proposal A involves an initial cost of $15,000 and an annual operating costof $2,000 per year for the next 4 years. Thereafter, the operating cost is expected to increase by $100 per year. This equipment is expected to have a 10-year life with no salvage value.Proposal B requires an initial investment of $28,000 and an annual operating cost of $1,200 per year for the first 3 years. Thereafter, theoperating cost is expected to increase by $120 per year. This equipment is expected to last for 20 years and will have a $2,000 salvage value. If the company's minimum attractive rate of return is 10%, which proposal should be accepted on the basis of present worth analysis?
- Give typing answer with explanation and conclusion Two processes can be used for producing a polymer that reduces friction loss in engines. Process T will have a first cost of $780,000, an operating cost of $80,000 per year, and a salvage value of $80,000 after its 2-year life. Process W will have a first cost of $1,280,000, an operating cost of $25,000 per year, and a $120,000 salvage value after its 4-year life. Process W will also require updating at the end of year 2 at a cost of $90,000. Which process should be selected on the basis of a present worth analysis at a MARR of 12% per year? The present worth of process T is $− , and the present worth of process W is $− . The process selected on the basis of the present worth analysis is process (Click to select) .A theft-avoidance locking system has a first cost of $23,500, an AOC of $16,000, and no salvage value after its 3-year life. Assume that you were told the service provided by this asset would be needed for only 5 years. This means that the asset will have to be repurchased and kept for only 2 years. What would its market value, call it M, have to be after 2 years in order to make its annual worth the same as it is for its 3-year life cycle at an interest rate of 10% per year? Determine the market value M using factors. The market value M is $A textile processing company is evaluating whether it should retain the current bleaching process that uses chlorine dioxide or replace it with a proprietary oxypure process. The relevant information for each process is shown. Use an interest rate of 15% per year to perform the replacement study. Additionally, write the PMT functions that display the information necessary to make the decision. Process Current Oxypure Original cost 6 years ago, $ 450,000 — Investment cost now, $ — 600,000 Current market value, $ 25,000 — Annual operating cost, $/year 190,000 70,000 Remaining life, years 3 10 Salvage value, $ 0 50,000
- In order to replace an old process for producing a polymer that reduces friction loss in engines, two current-technology machines have been identified. Process K will have a first cost of $160,000, an operating cost of $7000 per month, and a salvage value of $50,000 after 1 year and $40,000 after its maximum 2-year life. Process L will have a first cost of $210,000, an operating cost of $5000 per month, and salvage values of $100,000 after 1 year, $70,000 after 2 years, $45,000 after 3 years, and $26,000 after its maximum 4-year life. You have been asked to determine which process is better using a study period of (a) 1 year, (b) 2 years, and (c) 3 years. The company’s MARR is 12% per year compounded monthly.Compare two alternatives for a physical security system surrounding a power distribution substation using annual worth analysis and a MARR of 10% per year. System Condi Torro First cost, $ −25,000 −130,000 M&O cost, $ per year −9,000 −2,500 Salvage value, $ 3,000 100,000 Life, years 3 ∞Two machines can be used to produce a part from titanium. The costs and other cash flows associated with each alternative are estimated. The salvage values are constant regardless of when the machines are replaced. Determine which alternative(s) should be selected for further analysis if alternatives must have a payback of 5 years or less. Perform the analysis with (a) i = 0%, and (b) i = 10% per year. Machine Semiautomatic Automatic First cost, $ −40,000 −90,000 Net annual income, $ per year 10,000 15,000 Maximum life, years 10 10 Salvage value, $ 0 0