An investment of $60,000 ten years ago resulted in uniform income of $10,000 per year for the 10-year period. The rate of return on the investment was closest to: (a) 10.6% per year (b) 14.2% per year (c) 16.4% per year (d) 18.6% per year
Q: t and interest rate of 10% per year, the perpetual equivalent annual equivalent cost of $70000 now,…
A: Annual cost = $70000 At the end of six year the cost = $100000 From ten year the cost = $10000…
Q: A manufacturer of electronic devices invests $650,000 in equipment for making compact piezoelectric…
A: Given Information: Cost of Equipment = $650,000 Revenue per year = $225,000 Time Period = 10 years…
Q: In most engineering economy studies, the best alternative is the one which:a. Will last the longest…
A: Economics deals in the market demand and supply of the products, goods and services of the commodity…
Q: ng counties in a state have agreed to pool tax resources already designated for county-maintained…
A: Answer is given below
Q: Mid-Valley Industrial Extension Service, a state-sponsoredagency, provides water quality sampling…
A: IH: initial cost (IC) is $125,000, annual operating cost (AC) is 15,000. Annual salary cost (AS) is…
Q: robotics used on the heavy truck gear line will produce total benefits of $516,000 (in today's…
A: The method through which one can determine whether a currently used capital asset should be replaced…
Q: A publicly traded construction company reported that it just paid off a loan that it received 1 year…
A:
Q: Chemco Enterprises is the manufacturer of Ultra-Dry, a hydrophobic coating that will waterproof…
A: Given, Initial cost (P) = 32,000 Net annual revenue (A) = 29,000 - 18,000 = 11,000 Salvage…
Q: The Texas Department of Transportation (TxDOT) is considering two designs for crash barriers along a…
A: Design 2B: Cost- $3 million Installation- $142,500 per year to maintain Design 4R: Cost- $3.7…
Q: 20,000 -90,000 50,000 -10,000 2 4 According to the rule of signs, there can be up to three |rate of…
A: *Answer: Given cash flow i=15%
Q: A remotely located air sampling station can be powered by solar cells or by running an electric line…
A: The given information can be tabulated as follows.
Q: Aero Serve, Inc. manufactures cleaning nozzles for reverse pulse jet dust collectors. The company…
A:
Q: meant by the term equal service alternative?
A: Equal service means that the products or commodities provide service for an equivalent period of…
Q: A mortgage bond issued by Automation Engineering is for sale for $8200. The bond has a face value of…
A:
Q: There are a number of reasons for not paving a rural road, including low traffic volume, property…
A: Construction cost of gravel road (CCG) is $1,025,000. Its maintenance cost (MCG) is $335,000. Time…
Q: Identify at least three noneconomic attributes that may be used as evaluation criteria in the…
A: Decision-making is important to leaders, government and managers. It involves describing the problem…
Q: A manufacturer of diaphragm seals has identified the cash flows shown for manufacturing and sales…
A: We will use the concepts such as No return payback, net annual revenue to answer this question.
Q: of two methods must be used to produce expansion anchors. Method A costs $80,000 initially and will…
A: Solution given below,
Q: An investment of RM50,000 can be made in a project that will produce a uniform annual revenue of…
A: The present worth method includes converting all the future cash flows into present value. If the…
Q: Discuss the importance of alternative identification in the engineering economic process.
A: Economics of engineering is that branch of the economics subject which supports evaluation of the…
Q: Another name for noneconomic attributes is: (a) Sustainability (b) Intangible factors (c)…
A: Non economic attributes are attributes that cannot be measures numerically and so they are called as…
Q: When faced with different alternatives, there are many criteria that can be used to identify the…
A: There are many alternatives that are available, and many criteria are used to select the alternative…
Q: A wireless monitored process has fixed cost of $40,000 per year and variable cost of $30 per unit.…
A: The total cost for wireless monitored process can be calculated as follows:
Q: The process for producing a fruit-tree pesticide has a first cost of $200,000 (initial investment at…
A: To find the discounted payback period firstly we compute the net cash flows taking into…
Q: Five years ago, an alumnus of a university donated $50,000 to establish a permanent endowment for…
A: Amount = $50,000 Interest = 4500 after one year,
Q: A solid waste disposal company borrowed money at 10% per year interest to purchase new haulers and…
A: Given interest rate = 10% r = 0.10 Amount of loan that she has to pay after completing 2 years…
Q: hree neighboring counties in a state have agreed to pool tax resources already designated for…
A:
Q: The president of Biomed Products is considering a long-term contract to outsource maintenance and…
A: Capital cost: Capital expenses are fixed, once expenses caused on the acquisition of land,…
Q: A dam will have a first cost of $5,000,000, an annual maintenance cost of $25,000 and minor…
A: First cost = $5000000 Annual maintenance cost = $25000 Reconstrction cost = $100000
Q: A sheltered workshop requires a lift truck to handle pallets for a new contract. A lift truck can be…
A: A lift truck can be purchased for Rs.2,70,000. Annual insurance costs are 3% of the purchase price,…
Q: Mid-Valley Industrial Extension Service, a state-sponsoredagency, provides water quality sampling…
A: The annual worth of in house project can be calculated as follows:
Q: Gulf Aluminum Extrusion (GAE) plans to replace its existing extrusion facility with a new one. GAE…
A: The indifference point is the level of volume at which total costs, and hence profits, are the same…
Q: A food processing company is considering two types of moisture analyzers. Only one can be selected.…
A: The MARR is the shortened form of the Minimum Accepted Rate of Return of the project or the…
Q: What evaluation criterion is used in economic analysis?
A: In economic analysis, while judging the viability of a project or while making any investments…
Q: Dilute hydrogen peroxide (H2O2) is produced in the facility where you work as an engineer. company…
A: Given the first year monthly instalment = 100000 per month Second-year monthly instalment = 150000…
Q: Two methods can be used to produce expansion anchors. Method A costs $90,000 initially and will have…
A: Present worth analysis is a method which compare the cash flow of each alternatives and compare…
Q: An investment of $60,000 ten years ago resulted in uniform income of $10,000 per year for the…
A: The rate of return on investment can be calculated by the following formula : R= Net ProfitCost of…
Q: ABC Corporation was able to issue 20-year P10,000,000-face value bonds with interest of 8% per…
A: The effective annual interest rate is the real interest rate on credit since it considers the…
Q: b) What is the cost of each instalment per year c) Given two rates of return guess values as 2.5%…
A: Answer in Step 2
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: Handheld fiber-optic meters with white light po- larization interferometry are useful for measuring…
A: The Break even point is the point of No profit no loss as at this point the firm is earning a zero…
Q: White Oaks Properties builds strip shopping centers and small malls. The company plans to replace…
A: “Since you have posted a question with multiple parts, we will solve only first parts for you. To…
Q: Since many U.S. Navy aircraft are at or near their usual retirement age of 30 years, military…
A: Answer - Need to find - The present worth of the assessment system Given - Cost of aircraft = $20…
Q: Over a 7-year period, the number of uninsured motorists in New Mexico dropped from 33% to 10%…
A: The number of uninsured motorists dropped from 33% to 10% during 7 years. Assuming the decrease…
Q: The sheriff of Los Lunas county along the Arizona- Mexico border asked the county to build a new…
A: Economical: Economical is something practical that is a decent worth, or somebody who doesn't waste,…
Q: biofuel subsidiary of Petrofac, Inc. is planning to borrow $12 million to acquire a small…
A: Annual worth represents the net benefits and cost which is incurred by firm in a year , and we…
Q: If the APR is 14%, what is the annual effective rate (%)?
A: The annual effective rate gets calculated by determining the real return on savings or…
Q: A small minority firm TheGlobalTrans invested $100,000 for an intersection signal innovation…
A: For the calculation for bimonthly income, we need to divide the rate of interest by 6 and multiply…
Q: The Texas Tomorrow Fund (TTF) is a program started in 1996 in Texas wherein parents could prepay…
A: The cost of entering the newborn in 1996 = $10500 The TTF fund grew at the rate = 4% Increase in…
An investment of $60,000 ten years ago resulted in
uniform income of $10,000 per year for the 10-year period. The
closest to:
(a) 10.6% per year
(b) 14.2% per year
(c) 16.4% per year
(d) 18.6% per year
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Due to the high crime rate in the city center, the state council in partnership with the police has installed CCTV in several “hotspot” areas. The installation of the CCTV cost USD1000000. The cost of CCTV maintenance in the first year is USD500,000, USD700000 in the second year, USD950000 in the third year, USD990000 in the fourth year and costs are realized at the end of each year. On the other hand, the installation of CCTV will help to reduce crime in that area and is predicted to bring about a benefit of USD2000000 for the first and second year and a benefit of USD 3000000 for the third and fourth year. At the end of the fourth year, the CCTV will be replaced by a new one and it can be resold as second hand for USD200000. Assume the discount rate of 3% is used. Calculate the present value of net benefits assuming that the benefits are realized at the beginning of each of the three years. Also, draw the timeline of benefits and costs.Due to the high crime rate in the city center, the state council in partnership with the police has installed CCTV in several “hotspot” areas. The installation of the CCTV cost USD1000000. The cost of CCTV maintenance in the first year is USD500,000, USD700000 in the second year, USD950000 in the third year, USD990000 in the fourth year and costs are realized at the end of each year. On the other hand, the installation of CCTV will help to reduce crime in that area and is predicted to bring about a benefit of USD2000000 for the first and second year and a benefit of USD 3000000 for the third and fourth year. At the end of the fourth year, the CCTV will be replaced by a new one and it can be resold as second hand for USD200000. Assume the discount rate of 3% is used. Calculate the present value of net benefits assuming that 40% of the benefits are realized at the beginning of the year and the balance at the end of the year.Due to the high crime rate in the city center, the state council in partnership with the police has installed CCTV in several “hotspot” areas. The installation of the CCTV cost USD1000000. The cost of CCTV maintenance in the first year is USD500,000, USD700000 in the second year, USD950000 in the third year, USD990000 in the fourth year and costs are realized at the end of each year. On the other hand, the installation of CCTV will help to reduce crime in that area and is predicted to bring about a benefit of USD2000000 for the first and second year and a benefit of USD 3000000 for the third and fourth year. At the end of the fourth year, the CCTV will be replaced by a new one and it can be resold as second hand for USD200000. Assume the discount rate of 3% is used. Calculate also Year 0 a). Calculate the present value of net benefits assuming the benefits are realized at the end of each of the four years. Also, draw the timeline of benefits and costs. b) Calculate the present value of…
- Due to the high crime rate in the city center, the state council in partnership with the police has installed CCTV in several “hotspot” areas. The installation of the CCTV cost USD1000000. The cost of CCTV maintenance in the first year is USD500,000, USD700000 in the second year, USD950000 in the third year, USD990000 in the fourth year and costs are realized at the end of each year. On the other hand, the installation of CCTV will help to reduce crime in that area and is predicted to bring about a benefit of USD2000000 for the first and second year and a benefit of USD 3000000 for the third and fourth year. At the end of the fourth year, the CCTV will be replaced by a new one and it can be resold as second hand for USD200000. Assume the discount rate of 3% is used. a). Calculate the present value of net benefits assuming the benefits are realized at the end of each of the four years. Also, draw the timeline of benefits and costs.The U.S. Army received two proposals for a turnkey design/build project for barracks for infantry unit soldiers in training. Proposal A involves an off-the-shelf “bare-bones” design and standard grade construction of walls, windows, doors, and other features. With this option, heating and cooling costs will be greater, maintenance costs will be higher, and replacement will occur earlier than proposal B. The initial cost for A will be $750,000. Heating and cooling costs will average $6000 per month with maintenance costs averaging $2000 per month. Minor remodeling will be required in years 5, 10, and 15 at a cost of $150,000 each time in order to render the units usable for 20 years. They will have no salvage value. Proposal B will include tailored design and construction costs of $1.1 million initially with estimated heating and cooling costs of $3000 per month and maintenance costs of $1000 per month. There will be no salvage value at the end of the 20-year life. Which proposal should…Dilute hydrogen peroxide (H2O2) is produced in the facility where you work as an engineer. company customer to invest in an additional concentration unit for the production of concentrated hydrogen peroxide (H2O2) in line with the demands of aims. For the establishment of the required unit, the finance company recommends the following financing model for 3 years: First year installments of 100,000 TL per month, 150,000 TL per month in the second year and 175,000 TL per month in the third year. Also at 36 MonthsAn additional balloon payment of 700.000 TL will be made. The monthly interest rate is 2.5%. a) If this proposed financing model was not chosen and all installments were paid equally, equal monthly installments. What would the amount be? b) If no payment was made for this additional concentration facility for 3 years, and at the end of the 3rd year, one-time payment. If so, what would be the amount to be paid? Find what is required by drawing cash flow charts.
- Five years ago, an alumnus of a university donated $50,000 to establish a permanent endowment for scholarships. The first scholarships were awarded 1 year after the contribution. If the amount awarded each year, that is, the interest on the endowment, is $4500, the rate of return earned on the fund is closest to: (a) 7.5% per year (b) 8.5% per year (c) 9% per year (d) 10% per yearWhat is the present worth difference between an investment of $30,000 per year for 40 years and aninvestment of $30,000 per year forever at an interest rate of 15% per year?Aero Serve, Inc. manufactures cleaning nozzles for reverse pulse jet dust collectors. The company spent $40,000 on a production control system that will increase profits by $11,096 per year for 5 years. The rate of return per year on the investment is closest to: (a) 20% (b) 16% (c) 12% (d) Less than 11%
- The State of Chiapas, Mexico, decided to fund a program for literacy. The first cost of $300,000 now and an updated budget of $145,000 every 7 years forever is requested. Determine the perpetual equivalent annual cost at an interest rate of 10% per year. The perpetual equivalent annual cost is $− .Mid-Valley Industrial Extension Service, a state-sponsoredagency, provides water quality sampling services toall business and industrial firms in a 10-county region.Last month, the service purchased all necessary lab equipmentfor full in-house testing and analysis. Now, an outsourcingcompany has offered to take over this function ona per-sample basis. Data and quotes for the two optionshave been collected. The MARR for government projectsis 5% per year and a study period of 8 years is chosen.In-house: Equipment and supplies initially cost$125,000 for a life of 8 years, an AOCof $15,000, and annual salaries of$175,000. Sample costs average $25.There is no significant salvage valuefor the equipment and supplies currentlyowned.Outsourced: Cost averages $100 per sample for thefirst 5 years, increasing to $125 persample for years 6 through 8. Determine the breakeven number of tests between the two options.Mid-Valley Industrial Extension Service, a state-sponsoredagency, provides water quality sampling services toall business and industrial firms in a 10-county region.Last month, the service purchased all necessary lab equipmentfor full in-house testing and analysis. Now, an outsourcingcompany has offered to take over this function ona per-sample basis. Data and quotes for the two optionshave been collected. The MARR for government projectsis 5% per year and a study period of 8 years is chosen.In-house: Equipment and supplies initially cost$125,000 for a life of 8 years, an AOCof $15,000, and annual salaries of$175,000. Sample costs average $25.There is no significant salvage valuefor the equipment and supplies currentlyowned.Outsourced: Cost averages $100 per sample for thefirst 5 years, increasing to $125 persample for years 6 through 8. Use a spreadsheet to graph the AW curves for both options for test loads between 0 and 5000 per year in increments of 1000 tests. What is the…