Construct a cash flow diagram that represents the amount of money that will be accumulated in 15 years from an investment of $40,000 now at an interest rate of 8% per year.
Q: A professional photographer who specializes in wedding-related activities paid $47,500 for equipment…
A: Salvage value is the estimated resale value of an asset at the end of its useful life. It is…
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: Ecology group wishes to purchase a piece of equipment for recycling of various metals. Machine 1…
A: * SOLUTION :-
Q: Why is an incremental analysis necessary when conducting a rate of return evaluation of cost…
A: Incremental research/analysis is a technique of decision making in company to find out the real gap…
Q: Your brother, a new college graduate, wants to be his own boss. He wants to open a restaurant in a…
A:
Q: Handheld fiber-optic meters with white light polarization interferometry are useful for measuring…
A: Breakeven point is the point where firm only cover their cost or at that point Total Revenue equals…
Q: The fixed cost at Harley Motors is $5 million annually. The main product has revenue of $89 per unit…
A: a.) Break-even quantity can be calculated as follows: Thus, the value of break even quantity is…
Q: Pizza Bera Sedap is a pizza making company. Currently, its process makes complete pizzas, fully…
A: For Process 1: FC1=RM 18,000 VC1= RM 1.85 per pizza. Therefore, the total cost for x pizzas will be:…
Q: A friend of yours bought a small apartment building for $100,000 in a college town. She spent…
A: Hi, thanks for the question. Since there are multiple subparts, we will answer first three subparts.…
Q: The Toro Company is expanding its El Paso, Texas plastic molding plant as it continues to transfer…
A:
Q: One way to recover invested capital with interest is to collect the principal P over n years as P∕n…
A: (a) Borrowing amount (B) is $6,000. Interest rate (i) is 10%. Time period (n) is 3 years. Capital…
Q: Poly-Chem Plastics is considering two types of injection molding machines: hydraulic and electric.…
A: ROR on extra investment is also known as incremental ROR. In order to determine that first we need…
Q: A remotely located air sampling station can be powered by solar cells or by running an above ground…
A: Engineering economy pertains to the application of economic concepts in making financial decisions…
Q: Why do most of the engineers and financial managers prefer rate-of-return analysis to the PW method?
A: Present worth is defined as the current value of the amount of money that a person will receive in…
Q: What is meant by the term equal service alternative?
A: The equal service alternative refers to the projects that have the same life time.
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 process control manager is considering two robots to improve materials-handling capacity in the…
A: The incremental rate of return can be defined as a calculation of a financial return to an investor…
Q: 1. The manufacturer produces certain items at a labor cost per unit of P315, material cost per unit…
A: Given labor cost per unit = 315 Material cost per unit = 100 Variable cost per units = 3 Selling…
Q: A local factory assembling calculators produces 400 units per month and sells them at P 1,800 each.…
A: In economics, business—and especially cost accounting—the break-even point (BEP) or unhealthy point…
Q: State the difference between a contingent project and a dependent project.
A: A project or a program can be treated as an undertaking that involves research or design and is…
Q: n marble block quarrying operation, hand rock drills, costing P70,000 each, is used. It has a…
A: Given, Hand drill machine Initial cost=P70000 Monthly production=30 cubic rock Diesel= 80 liters…
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: Find the capitalized cost of a present cost of $350,000, annual costs of $35,000, and periodic costs…
A: A capitalized cost is an expense added to the cost basis of a fixed asset on a company's balance…
Q: d a building 5 years ago for P 5M. Its annual maintenance expense has been P 250,000 per year. At…
A: Since you have posted multiple subparts i.e. AW, PW, FW, ERR where according to the guidelines we…
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: An engineer is trying to decide which process to use to reduce sludge volume prior to disposal. Belt…
A: Table 1 shows the cash flow of different projects. MARR (i) is 6 percent. The time period for…
Q: Draw cash flow diagrams with symbols. Show your work using conversion factor notations. You need…
A: In the present, the worth of money is considered to be comparatively more with respect to the future…
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: Wall's Pharmacy will have to sell a new product that has an estimated revenue of $4,800 per month…
A: Given Data, Estimated revenue = $4800 per month. Cost = $1800 per month. Initial purchase= 28000…
Q: A machine part to be machined may be made either from an alloy of aluminum or steel. There is an…
A: * SOLUTION :-
Q: Draw cash flow diagrams with symbols. Show your work using conversion factor notations. You need…
A: The worth of money in the present is considered to be more as compared to the future due to various…
Q: Wall's Pharmacy will have to sell a new product that has an estimated revenue of $4,800 per month…
A:
Q: The Ecology Group wishes to purchase a piece of equipment for recycling of various metals. Machine 1…
A: Cost of machine 1 (C1) is $123,000. Annual cost (AC1) is $5,000. Operation cost (OC1) is $24 per…
Q: A remotely located air sampling station can be powered by solar cells or by running an electric line…
A: Future value can be calculated by using the following formula.
Q: A friend of yours bought a small apartment building for $100,000 in a college town. She spent…
A: The components of the seven-step procedure include: Problem recognition and evaluation Planning of…
Q: The pieces of equipment required to place 160 cubic yards of concrete in 1 day by experienced…
A: Variable costs are the total obligation of the firm per time period for all the variable inputs of…
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 is the method that is used to calculate the profitability ratio…
Q: Handheld fiber optic meters with white light polarization interferometry are useful for measuring…
A: The cost of production is the summation of all the costs incurred while producing a commodity in the…
Q: Tom borrowed Php500,000 from her parents to open a spa. He pays her parents a 5% yearly return on…
A: Fixed cost is defining as the type of expenses which are rigid in nature, it means they have…
Q: A professional photographer who specializes in wedding-related activities paid $49,000 for equipment…
A: here by using the annual worth formula we calculate the number of year by using the given…
Q: Your brother, a new college graduate, wants to be his own boss. He wants to open a restaurant in a…
A: Given a certain rate of return, present value (PV) is the current value of a future sum of money or…
Q: Revcon Products has two subcontractor bids to automate a composite winding process. Process A will…
A: We know that, Note : Option C and D automatically get rejected because they include fixed costs…
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: A manufacturing process at Simplicity XP has a fixed cost of $40,000 per month. A total of 100 units…
A: FC = 40,000 / month VC = 3000 / day cost of 100 units in 1 day = 3000 / day 1 unit cost = 3000 /…
Q: Assume a sales price per unit of $25, variable cost per unit $15, and total fixed costs of $18000.…
A: The breakeven point refers to the level of output where the revenue earned is the same as the cost…
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: A company sells an item for P10 each. If the manufacturing cost is P60k per month and the labor is…
A: Break even point (units)=Fixed costSells per unit - Variable cost per unit Here, Fixed cost = 60,000…
Q: In the breakeven analysis, fixed costs are constant. Over time these expenses can change. Give some…
A: Fixed costs of production are that part of company's costs which remains same at each level of…
Q: PRO Engineering is considering whether to purchase or lease a piece of earthmoving equipment. The…
A: Leases are normally simpler to get and have more adaptable terms than advances for purchasing gear.…
Q: In a college town, a friend of yours spent $100,000 on a small apartment building. She paid $10,000…
A: "Since you have posted a question with multiple sub-parts ,we will solve first three subparts for…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- A small minority firm TheGlobalTrans invested $100,000 for an intersection signal innovation project. At an interest rate of 15% per year, compounded bimonthly, what is the bimonthly income required to recover the investment in 2 years.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 yearRevenue from the sale of ergonomic hand tools was $300,000 in years 1 through 4 and $465,000 in years 5 through 9. Determine the equivalent annual revenue in years 1 through 9 at an interest rate of 10% per year.
- The production of polyamide from raw materials of plant origin, such as castor oil, requires 20% less fossil fuel than conventional production methods.Darvon Chemicals borrowed $6 million to implement the process. If the interest rate on the loan is 10% per year for 10 years, what is the amount of interest for year 2?Midize Flower Company provides flowers and other nursery products for decorative purposes in medium to large sized restaurants and businesses. The company has been investigating the purchase of a new specially equipped van for deliveries. The van will cost $61,392 with a(n) eight−year life. The expected additional cash inflows are $16,000 per year. What is the internal rate of return?The State of Chiapas, Mexico, decided to fund a program for improving reading skills in elementary school students. The first cost is $300,000 now, and an update amount of $100,000 every 5 years forever. Determine the perpetual equivalent annual cost at an interest rate of 10% per year.
- The by-product department of Iowa Packing utilizes a cooker that has the cost stream shown. Determine the annual worth for years 1 through 5 of the costs at an interest rate of 10% per year. Costs are in $1000 units.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%Aloma, a university graduate who started a successful business, wants to start an endowment in her name that will provide scholarships to IE students. She wants the scholarship to provide $10,000 per year and expects the first one to be awarded on the day she fulfills the endowment obligation. If Aloma plans to donate $100,000, what rate of return must the university realize in order to award the $10,000 per year scholarship forever?
- An engineer received a bonus of $12,000 that he will invest now. He wants to calculate the equivalent value after 24 years, when he plans to use all the resulting money as the down payment on an island vacation home. Assume a rate of return of 8% per year for each of the 24 years. Find the amount he can pay down, using the tabulated factor, the factor formula, a spreadsheet function, and a calculator function.Each year Exxon-Mobil expends large amounts of funds for mechanical safety features throughout its worldwide operations. Carla Ramos, a lead engineer for Mexico and Central American operations, plans expenditures of $1 million now and each of the next 4 years just for the improvement of field-based pressurerelease valves. Construct the cash flow diagram to find the equivalent value of these expenditures at the end of year 4, using a cost of capital estimate for safety-related funds of 12% per year.A company that utilizes carbon fiber 3-D printing wants to have money available 2 years from now to add new equipment. The company currently has $650,000 in a capital account and it plans to deposit $200,000 now and another $200,000 one year from now. The total amount available in 2 years, provided it returns a compounded rate of 15% per year, is closest to: (a) $1,354,100 (b) $1,324,100 (c) $1,125,125 (d ) $1,050,000