A reactor for your plant has an initial capital cost of $100,000 and useful life of 5 years.However, there is uncertainty about the annual costs and benefits of the unit as shown in theprobability tables below:Annual CostsAnnual BenefitProbabilityAmountProbabilityAmount$6000$40000.3$50,000$25,0000.20.70.8If your company uses a MARR of 10% then calculate the equivalent uniform annual benefit(EUAB) for the outcome with the highest joint probability.

Answer: EAC annual benifit = 0.386

Answered: A reactor for your plant has an initial…

Intermediate Algebra

19th Edition

ISBN:9780998625720

Author:Lynn Marecek

Publisher:Lynn Marecek

Chapter12: Sequences, Series And Binomial Theorem

Section12.3: Geometric Sequences And Series

Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...

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What is the total effect on the economy of a government tax rebate of $500 to each household in order to stimulate the economy if each household will spend of the rebate in goods and services?
Two pumps capable of delivering 100 hp to an agricultural application are being evaluated in a present economy study. The selected pump will only be utilized for one year, and it will have no market value at the end of the year. Pertinent data are summarized as given follows. If electric power costs $0.10 per kWh and the pump will be operated 4,000 hours per year, which pump should be chosen? Recall that 1 hp = 0.746 kW.
You are considering a project with the following financial data: Required initial investment at n=0 : $50M Project life: 10 years Estimated annual revenue: $X (unknown) Estimated annual operating cost: $15 M Required minimum return: 20% per year Salvage value of the project: 15% of the initial investment What minimum annual revenue (in $M) must be generated to make the project worthwhile? Answer with Excel Format and Formulas!
Suppose that JB Cos. has a capital structure of 78 percent equity, 22 percent debt, and that its before-tax cost of debt is 13 percent while its cost of equity is 17 percent. Assume the appropriate weighted-average tax rate is 21 percent and JB estimates that they can make full use of the interest tax shield. What will be JB's WACC? (Round your answer to 2 decimal places.
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Answer the given problem. 1. Annie bought one dozen smartphones for P200,000.00 with a discount of 5%. She sold half dozen at a price of P18,000.00 per unit. However, a new model of smartphone became available in the market, so she sold the remaining half dozen @ P12,000.00 each unit. What was her profit or loss? Compute the following requirements: a Gross profit rate 6. Operating profit margin rate c. Net profit margin rate d. Return on Investment
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