A Texas chemical company had to file for bankruptcy because of a nationwide phaseout of methyl tertiary butyl ether (MTBE). The company is in the planning phase of reorganizing and expects to invest $50 million in a new ethanol production facility. Determine the revenue necessary each month to recover its investment in 3 years, plus interest at a rate of 2% per month, compounded continuously. Solve by (a) formula, and (b) spreadsheet function

Q: El Paso Water (EPW) purchases surface water for treatment and distribution to EPW customers from the…

A: (a)   Suppose, the cost decreases from (CI) 8 % to (C2) 4. Time period is 20 year. Water cost in the…

Q: Western Refining purchased a model MTVS peristaltic pump for injecting antiscalant at its…

A: Time period is denoted by ‘n’ and interest rate is denoted by ‘i’. It is given that the cost of pump…

Q: TMI Systems, a company that customizes software for construction cost estimates, repaid a loan…

A: A=P1+R×T100Where, A=AmountP=Principal R=Rate of interest and T=Time in years

Q: A construction management company is examining its cash flow requirements for the next few years.…

A: Future worth represent the worth of the present asset with determined rate of growth , if the Future…

Q: Head & Shoulders shampoo insured a spokesman football player’s long hair for $1 million with…

A: Insurance amount (In) is $1,000,000. Probability of pay out (Pr) is 1%. Rate of return (i) is 20%…

Q: A company that utilizes carbon fiber 3-D printing wants to have money available 2 years from now to…

A: Future value at the end of year can be calculated as follows:

Q: AutomationDirect, which makes 6-inch TFT color touch screen HMI panels, is examining its cash flow…

A: Interest rate = 10% Planned spending is $7000 for two years, $9000 for four years and $15,000 for…

Q: A large water utility is planning to upgrade its SCADA system for controlling well pumps, booster…

A: Present worth: Present worth can be calculated as follows:

Q: Rolled ball screws are suitable for high-precision applications such as water jet cutting. Their…

A: Given:  The interest rate is = 8% To Find: The equivalent annual cost

Q: Because unintended lane changes by distracted drivers are responsible for 43% of all highway…

A: The device cost is $260 and number of new cars which need the devices are 100,000. “A” represent the…

Q: Detrich Products is planning to upgrade an aging manufacturing operation 5 years from now at a cost…

A: The cost at the fourth year (C) is $100,000. Interest rate (i) is 10%. Time period (n) is 4 years.…

Q: Automationdirect, which makes 6-inch TFT color touch screen HMI panels, is examining its cash flow…

A: Expenditure two years from now is $7,000 Expenditure four years from now is $9,000 Expenditure five…

Q: Centrum Water & Gas provides standby power to pumping stations using diesel-powered generators.…

A: Saving (S) is $15,000 per year. Saving starts from year 3 to year 20. Thus, time period 1 (n1) is 2…

Q: Acme Manufacturing Company is considering purchasing a maintenance contract for its new waste…

A: To Compute the uniform annual payment, first compute the presents worth of the contract amount as…

Q: In an effort to retain troops who are proficient with weapons and who can speak the languages of…

A: To get the equivalent annual cost of the program: Given information: The present value as $150,000…

Q: Each year Exxon-Mobil expends large amounts of funds for mechanical safety features throughout its…

A: The interest rate or nominal interest rate is any given or declared rate of interest. FV or future…

Q: Freeport McMoran purchased two model MTVS peristaltic pumps (to inject sulfuric acid and King Lee…

A: Given information: • Cost of each pump is $950. • Chemical cost is $11 per day. • Time period is 3…

Q: If a manufacturer of electronic devices invests $650,000 in equipment for making compact…

A: (a)   Investment (I) is $650,000. Rate of return from the investment (RR) is $225,000 per year. Time…

Q: The TerraMax truck currently being manufactured and field tested by Oshkosh Truck Co. is a…

A: The nominal interest rate or money interest rate can be any declared rate of interest per annum…

Q: The company must make $ its investment plus a return of 15% per year. million annually in years 1…

A: Present worth is the term that is used to describe the worth of the money for today as compared to…

Q: The State of Chiapas, Mexico, decided to fund a program for improving reading skills in elementary…

A: Ans Solution

Q: A company expects the cost of equipment maintenance to be s5,000 in year one, s$5,500 in year two,…

A: The present worth can get determined using the following formula: Present Worth=Cash Flow Each…

Q: Corrosion problems and manufacturing defects rendered a gasoline pipeline between El Paso, TX, and…

A:

Q: What effective interest rate per year, compounded continuously, is equivalent to a nominal rate of…

A: The effective interest rate refers to the rate of interest that is paid on an investment or loan or…

Q: A small oil company wants to replace its Micro Motion Coriolis flowmeters with Emerson FSeries…

A: Money interest rate (i) is any given or declared rate of interest. Present value (PV) is the…

Q: What is the difference between APR and APY? Which one is used in interest factor formulas, tables,…

A: The annual percentage rate (APR) is the measure of annual interest rate. It is same as nominal rate…

Q: The present sum needed to provide for an annual withdrawal of $1,500 for 25 years beginning 5 years…

A: We are going to use Present Value approach to answer this question.

Q: The pumping cost for delivering water from the Ohio River to Wheeling Steel for cooling hot rolled…

A:

Q: What is the equivalent annual cost in years 1 through 7 of a contract that has a first cost of…

A: First cost (FC) is $70,000. Time period (n1) is 7 years. Equivalent annual cost (AC) is $15,000.…

Q: Heat loss through the walls of a heating system means an annual cost of $800,000. An insulation…

A: Given  Initial annual cost = $800,000 The cost of an insulation system that can reduce the loss by…

Q: Videotech specializes in online security software development. It wants to have $65 million…

A: a.) Interest rate and the number of time year can be calculated as follows: Since the interest rate…

Q: Radio Frequency Identification (RFID) is a technology used by drivers with “speed passes” at toll…

A: Savings (S) occurring in the third month is $1,300,000. Time period 1 (n1) is 2 months. Interest…

Q: A construction company plans to accelerate the payments on an equipment loan as production…

A: The annual value of owning, operating, associated maintaining an quality over its entire life is…

Q: Determine the future worth in year 10 of a cash flow series that starts in year 0 at $100,000 and…

A: Here we calculate the future worth in 10 year which are as follow-

Q: A large water utility is planning to upgrade its system for controlling well pumps, booster pumps,…

A: The first phase will reduce labor and travel costs by $14,000 per year. The second phase will reduce…

Q: The cost of a fence that can detect poacher intrusion into a National Wildlife Preserve is $3…

A:

Q: Electric car maker Gentech signed a $75 million contract with Power Systems, Inc. to automate a…

A: The future value (F) is $75,000,000, interest (i) is 18%, and time period is 2 years. Then the…

Q: RKI Instruments borrowed $4,800,000 from a private equity firm for expansion of its facility for…

A: The interest rate on loan is calculated as follows.

Q: An engineer received a bonus of $12,000 that he will invest now. He wants to calculate the…

A: P = $12,000F =?i = 8% per yearn = 24 years.standard notation: Determine F, using the F/P factor for…

Q: A company expects the cost of equipment maintenance to be $5,000 in year one, $5,500 in year two,…

A: Given cost in 1st year = 5000 $ Constant increase in cost  = 500 $ Time = 15 years Interest rate = 5…

Q: A construction company plans to accelerate the payments on an equipment loan as production…

A: The initial payment,A1  = P10,000 per year. Annual addition, (G) = P1,000 Time period, (n) = 10…

Q: A structural engineering consulting company is examining its cash flow requirements for the next 6…

A: here we have different cashflow with different time with compounded semiannually , so here we…

Q: A company borrowed $500,000 and repaid the loan through yearly payments of $20,000 for 24 years plus…

A: Borrowed amount = $500,000 Repayment done = $24,000  For total time period of 20 years.  Single…

Q: How much will Kingston Technologies have to pay each year in eight equal payments, starting 2 years…

A:

Q: ] The present worth of $1,000 deposits in years 1 through 5 and a single disbursement of $500 in…

A: GIVEN   The present worth of $1,000 deposits in years 1 through 5 and a single disbursement of $500…

Q: The highway department expects the cost of maintenance of a piece of heavy construction equipment to…

A: Cash flow refers to the inflow and outflow of cash in a project or a business. The present worth of…

Q: The present worth of $5,000 in year 3, $10,000 in year 5, and $10,000 in year 8 at an interest rate…

A: The formula for present value (PV) is as follows: PV=FV×1(1+r)n , where FV is the future value, r is…

Q: What is the equivalent annual cost in years 1 through 8 of a contract that has a first cost of…

A: Given: First Cost=$72000 Annual cost from Year 3-8=$16000 Interest rate=14%