A piece of new equipment has been proposed by engineers to increase the productivity of a certain manual welding operation. The investment cost is $25,000, and the equipment will have a market value of $5,000 at the end of a study period of seven years. Increased productivity attributable to the equipment will amount to $8,000 per year after extra operating costs have been subtracted from the revenue generated by the additional production. 1-1 If the firm's MARR is 20% per year, is this proposal a sound one? Use the PW method.
Q: Economic growth dynamics?
A: Economic growth dynamics is concerned with the economy's oscillations. The majority of economic…
Q: 1.a Suppose voters always vote for the candidate whose stated position is nearest to their own views…
A: Since you have posted multiple questions, we will solve the first question for you. If you want any…
Q: Which of the following is a sign that an economy is in poor health? a) a prolonged decline in total…
A: the correct option is a A prolonged decline in total output A prolonged decline in total output…
Q: 1. Which of the following statements regarding price discrimination is false? In order to capture…
A: Price discrimination refers to the selling strategy which is used by the monopoly firms in which it…
Q: 3. The Department of Public Works and Highways (DPWH) awarded two contracts worth a combined Php55M…
A: Given: Contract worth=Php 55M Bid for contract=Php 48M Number of years=20 Interest rate=6%
Q: A monopoly creates a deadweight loss because the monopoly produces more than the efficient quantity…
A: Monopoly is a form of market structure in which there is only a single seller of the good which has…
Q: The partial credibility premium is calculated as 706 for 400 observations with mean loss of 600. It…
A: When actuaries examine data in order to evaluate risk, they employ tools, rules, and methods known…
Q: 4. Maria manages a bakery that specializes in ciabatta bread (monopolistically competitive firm),…
A: According to the question, Maria is the owner of a bakery that specializes in ciabatta bread (a…
Q: Part 1 of a 2-part question: Suppose the market demand and supply curves for "rental housing" are:…
A: Equilibrium is determined whete demand is equals to supply.
Q: Demonstrate your understanding of the law of diminishing marginal returns.
A: Law of diminishing marginal productivity states that the marginal production from the additional…
Q: Economic growth is determined by a) population, birth rates, and death rates. b) resources,…
A: Economic growth is the increase in price adjusted value of goods and services produced by an…
Q: Price and cost (dollars)
A: A monopoly is a market structure where there is only one firm in the market for a good or service.…
Q: Use the following information to answer the question Quantity (number ofFixedVariable Total Marginal…
A: Ans. Quantity (number of units) Fixed costs ($) Variable Costs ($) Total…
Q: 2. Profits from recycling paper, cardboard, aluminum, and glass at a liberal arts college have…
A: Basic calculation In this question:- The expected profit at the end of year 1=Php30000 This profit…
Q: If we consider ethics in a global scale, what is likely to stay consistent across different cultures…
A: Ethics: It refers to the values or norms that are followed by the people. Ethics help in framing the…
Q: Let preferences of both individuals be given by log(ci)+ log(c). Suppose that the endowment vectors…
A: Market supply of both the goods are the sum of endowments.
Q: In the long-run, perfectly competitive firms produce at the point where P = ATC MR = MC…
A: in perfect competitive market, there are many number of sellers and buyers which turns the market…
Q: What happens to GDDP if the investment icreases by 100 with MPC 0,8 and tax 20%
A:
Q: A Cost $4000 $2000 $6000 $1000 S9000 Annual benefit 639 410 761 117 750 Useful life, in years 20 20…
A: MARR=6%
Q: What is supply side economics and what is the general assessment of the efficacy of supply-side…
A: Some refer to supply-side economics as "Reaganomics" or the "trickle-down" doctrine advocated by…
Q: 17. A plant produces 300 units of equipment a month of PP3,600 each. A unit sells for P4,800. The…
A: Given; Quantity produced= 300 units Cost of equipments= P3600 each Price of equipments= P4800 each…
Q: A small company produces organic cookies. When the price is $6.00 per dozen, the average daily sales…
A:
Q: Under a marginal cost pricing rule, a natural monopoly makes zero economic profit incurs an economic…
A: For a natural monopoly we have downward sloping Average cost and when average cost is falling, AC is…
Q: PART I: Below is the quantity demanded and supplied in the market for skis. What is the equilibrium…
A:
Q: 3. Total cost is the a. amount a firm receives for the sale of its output. b. fixed cost less…
A: In a market, total cost is associated with the production of goods and services by a firm as it is…
Q: Fill in the blanks. Suppose the annual saving rate is 10 percent, population growth is 3 percent per…
A: Given Information - Saving Rate(s) = 10% Population growth rate (n) = 3% Depreciation (d) = 4%…
Q: Which of the following statements concerning profit-maximizing firms in long-run equilibrium is…
A: A firm maximizes profit by producing at a point where marginal revenue is equal to marginal cost
Q: AD/AS model. Country A is an oil exporting country. The aggregate demand and supply functions…
A: The question is based on the aggregate demand - aggregate supply model.
Q: Which of the following statements about cash transfers vs. vouchers is/are TRUE? Assume the voucher…
A: A cash transfer is simply a payment made by the government to help its inhabitants improve their…
Q: Suppose Ming spends his entire income on two goods, X and Y, has "standard-looking" indifference…
A: The intermediate or final process through which institutional entities consume things or services is…
Q: 1. Given the discussion of the effects of fiscal policy in this chapter, if the central bank does…
A: Fiscal policy refers to the use of government disbursement and tax policies to influence economic…
Q: Mention if the below statement is True or False: 1. In most countries today, many goods and services…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Suppose that the exchange rate between the United States doltlar ($) and the Thai currency, baht…
A: Ans. E. $12,000 Given: Given: the exchange rate between the US dollar and the Thai baht is 1 baht =…
Q: onsider twd developed and developing countries, the population growth rate of eveloped countries is…
A: At a consistent state, capital per laborer is steady, that is investment is a breakeven investment.…
Q: 10. If the United States changed its laws to allow for the legal sale of a kidney, which of the…
A: The quantity of a product that is sold into the market is referred to as supply.Because it is more…
Q: The J-curve effect relies upon A. Lags in demand response to devaluation. B. Larger demand…
A: (Q) The J-curve effect relies upon A. Lags in demand response to devaluation. B. Larger demand…
Q: 7. As the price level increases in an economy, what happens to the interest rate? Use the AD curve…
A: Money demand is for 3 motives 1. Transaction motive :- for buying goods and services 2.…
Q: Which of the following is true of a labor market with a bilateral monopoly? Employment will be…
A: A bilateral monopoly exists when there is one buyer and one seller in a market. There is a large…
Q: Required Q (2) if the demand function for a particular project is in the following form: Q = 75 - 5P…
A: As given Demand function is Q = 75 - 5P Price elasticity of demand = -dQdP×PQ
Q: Currency Exchange Worksheet (#5) 1. Let $1 =.78 € How much would a 20,000 € automobile cost in US$…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Compared to setting a single price, if a firm can price discriminate it makes a lower economic…
A: in monopoly market, 1) there is only single seller in the market with full control over the market…
Q: Refer to the accompanying table to answer the next four questions. Market for Public Transportation…
A: Price ceiling is the maximum price that can be charged in the market.
Q: A website that rents movies online recorded the age and the number of movies rented during the past…
A: Sample size n = 25< 30 SE(b1) = 0.0827
Q: 14. Suppose that the market for a certain good has an inverse demand of P = 200 – Q. The aggregate…
A:
Q: Institutions that help to channel funds from savers to borrowers are known as a) corporations. b)…
A: People do not consume their entire income rather they like to save a part of the income for future…
Q: Both home and host countries intervene foreign direct investment . Discuss 2 reasons of why a home…
A: Foreign Direct Investment is defined as an investment in the form of controlling ownership by a…
Q: 6. Hongxing has developed a popular self-hypnosis course. She sells the course two ways: through a…
A: Given information Hongxing is a popular firm for self-hypnosis course. He sells in 2 markets…
Q: Explain why a sudden, large burst of inflation could lead to a recession?
A: Inflation is the continuous rise in the price level of commodities in a nation over a period of…
Q: Why return to capital is an essntial ingredient of engineering economy studies?
A: The measure that could be used for the assessment of capital efficiency and profitability of a…
Q: O a. national income will decrease toward equilibrium
A:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Your company is considering the introduction of a new product line. The initial investment required for this project is $500,000, and annual maintenance costs are anticipated to be $45,000. Annual operating costs will be directly proportional to the level of production at $8.50 per unit, and each unit of product can be sold for $65. If the MARR is 15% and the project has a life of 5 years, what is the minimum annual production level for which the project is economically viable? The equipment can be sold for $80,000 at the end of five years.A man is considering putting up his own enterprise, where an investment of 800,000 will be required and will take 15 years to recoup. He estimates his annual sales at 800,000 along with the following operating costs. Materials =160,000/ yearLabor = 280,000/ yearOverhead = (40,000 + 10% of sales)/ yearSelling Expense = 60,000/ yearThe man will give up his regular job paying 216,000 Php per year and devote all his time to the operation of his business, this will result in decreasing his labor cost by 40,000 per year, material cost by 28,000 per year and overhead cost by 32,000 per year. If the man expects to earn at least 20% of his capital, should he invest? Solve using a) Rate of return method b) annual worth method c)present worth method d)equivalent uniform annual cost method2.5. An electric cooperative is considering the use of a concrete electric pole in the expansion of its power distribution lines. A concrete pole costs P18,000 each end will last 20 years. The company is presently using creosoted wooden poles which cost P12,000 per pole and will last 10 years. If money is worth 12 per cent, which pole should be used. Assume annual taxes amount to 1 per cent of first cost and zero salvage value in both cases
- A company is currently paying its employees$0.56 per mile to drive their own cars on companybusiness. The company is considering supplyingemployees with cars, which would involve purchasing at $25,000 with an estimated three-year life, a netsalvage value of $8,000, taxes and insurance at a costof $1,200 per year, and operating and maintenanceexpenses of $0.30 per mile. If the interest rate is 10%and the company anticipates an employee’s annualtravel to be 30,000 miles, what is the equivalent costper mile (neglecting income taxes)Cori's Meats is looking at a new sausage system with an installed cost of $495,000. This cost will be depreciated straight-line to zero over the project’s five-year life, at the end of which the sausage system can be scrapped for $73,000. The sausage system will save the firm $175,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $32,000. If the tax rate is 23 percent and the discount rate is 10 percent, what is the NPV of this project?A company is considering purchasing a machine for manufacturing that costs $30,000. The salvage value and O&M costs for the next 7 years is given in the following table. The Equivalent Uniform Annual Cost (EUAC) is computed for each year assuming the equipment was sold at the end of that year and a MARR of 6%. What is the optimal economic life of the machine? Yr Salvage Value O&M Costs EUAC 1 $15,000 $1,200 $18,000 2 $14,400 $2,100 $11,909 3 $13,800 $3,000 $10,753 4 $13,200 $3,900 $10.825 5 $12,600 $4,800 $11,382 6 $12,000 $5,700 $12,178 7 $11,400 $6,600 $13,106
- A food processing plant consumes 600,000 kW of electric energy annually and pays an average of ₱ 2.00 per kWh. A study is being made to generate its own power to supply the energy required in the food processing plant, and the power plant installation would cost ₱ 2,000,000.00. Annual operation and maintenance is ₱ 800,000, other expenses cost ₱ 100,000 per year. The life of the power plant is 15 years; salvage value at the end of life is ₱ 200,000; annual taxes and insurances, 6% of first cost; and interest rate is 15%. Determine if the power plant is justifiable using: a. Rate of Return Method b. Annual Worth Method c. Present Worth Method d. Future Worth MethodA harvester was purchased 4 years ago for $100,000. The current market value is $45,000, which will decline as follows over the next 5 years: $40,000, $33,500, $28,000, $24,000, and $17,000. The O & M costs are estimated to be $16,000 this year. These costs are expected to increase by $5000 per year starting year 2. MARR = 10% The foregone interest in year 4 is _______________.A process plant making 5000kg /day of a product selling for $1.75 per kg has annual directproduction costs of $2 million at 100 percent capacity and other fixed costs of $700,000. What isthe fixed charge per kg at the break-even point? If the selling price of the product is increased by10 percent, what is the dollar increase in net profit at full capacity if the income tax rate is 35percent of gross earnings?
- A common economic analysis objective is to find out whether it is more profitable to purchase anasset rather than rent it. A simple case of this dilemma is currently being analyzed by a privatecompany which wants to procure a pick-up truck for regular operation. For the next 24 months,the truck can be leased or purchased. The truck costs $9,500 if purchased now in cash. If leased,the monthly lease is $358 with the first payment due by the end of the first month. At the end ofthe lease term, 24 months, the truck is returned to the auto dealer with expected final repair costof $1,000 to be paid immediately before return to dealer. If purchased, the truck can be financedthrough monthly payments. The financing nominal interest rate is to be negotiated with thedealer. The financing will require $2,000 down payment (paid now) and monthly paymentsstarting at the end of the first month. After 24 months, it is expected to be worth half its purchaseprice.[a] Over what range of purchase financing…A man is considering putting up his own enterprise, where an investment of 800,000Php will be required and will take 15 years to recoup . He estimates his annual sales at 800,000Php along with the following operating costs. Materials ............................. 160,000Php/ yearLabor ............................. 280,000Php/ yearOverhead ............................. (40,000 + 10% of sales) Php/ yearSelling Expense............................. 60,000Php/ yearThe man will give up his regular job paying 216,000 Php per year and devote all his time to the operation of his business, this will result in decreasing his labor cost by 40,000Php per year, material cost by 28,000Php per year and overhead cost by 32,000 Php per year. If the man expects to earn at least 20% of his capital, should he invest? solve in the present worth cost methodA California utility firm is considering building a 50-megawatt geothermalplant that generates electricity from naturally occurring underground heal. The binary geothermal system will cost $85 million to build and $6 million (including any income-tax effect) to operate per year. (Unlike a conventional fossilfuel plant, this system will require virtually no fuel costs.) The geothermal plant is to last 25 years. At the end of that time, the expected salvage value will be about the same as the cost to remove the plant. The plant will be in operation for 70% (the plant-utilization factor) of the year (or 70% of 8,760 hours per year). If the firm's MARR is 14% per year, determine the cost of generating electricity per kilowatt-hour.