Evaluate a combined cycle power plant on the basis of the PW method when he MARR is 12% per year. Pertinent cost data are shown in the table. Should
Q: Thuy Anh runs a small flower shop in the town of Florabunda. She is debating whether she should…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Should the federal government continue to require a mandatory minimum wage, or should it instead…
A: In simple terms, the federal government refers to the central governing authority of a country or…
Q: 1 2 W X y a 0,1 1,2 2,4 b 1,4 2,3 0,1 с 7,5 6,2 5,3 Is player 1's strategy x dominated? If yes,…
A: A dominant strategy refers to a course of action that yields the highest payoff for a player,…
Q: Cost of Reducing Pollution by 1 Unit $10 $20 $40 ove is tabulated the pollution level in tons for…
A: Pollution permits are regulated allowances that allow producers to generate pollution. Tradable…
Q: 4. Short-run and long-run effects of a shift in demand Suppose that the shrimp industry is in…
A: There are various factors that affect the demand and/or supply of a particular good and/or service.…
Q: When you look at Gross Domestic Production (GDP) values of countries around the world, you notice…
A: In a country various commodities are produced during a given period of time. When the aggregate…
Q: Consider the following table showing national income in billions of dollars. Assume that the…
A: The marginal propensity to import (MPI) is a measure of how much an additional unit of income is…
Q: 2 W X y a 3,1 1,2 4,4 b 3,4 4,3 0,1 C 8,5 8,2 5,3 Is player 1's strategy x dominated? If yes,…
A: A course of action in a game that provides the best outcome for a player, regardless of the actions…
Q: What will happen to the trade balance and the real exchange rate of a small open economy when…
A: The difference between the value of an economy's exports (X) and the value of its imports (M) over a…
Q: Complete the table with the values of the 3-unit moving average of the given function: x r(x)…
A: Since you have posted multiple questions, we will provide the solution only to the first question as…
Q: The graph titled Soy Bean Market is a graph of the market for soy beans, a perfectly (purely)…
A: A Short-Run is defined as a concept which states that in a given period, at least one input or cost…
Q: Assume the market demand for carbonated water be given by QD = 200 − 5P. Assuming there are two…
A: In case of Cournot, firms decide to produce output simultaneously. Profit function of firm A: πA=…
Q: Price level (GDP deflator, 2005 100) 130 120 110 0 LAS SAS AD 12.0 12.5 13.0 13.5 14.0 14.5 Real GDP…
A: AS-AD model: In this model we are given the aggregate demand curve which exhibits negative…
Q: Given this data, we would expect the quality of life to have increased by what percentage over the…
A: The standard of living is defined as the average quality or quantity of goods and service that the…
Q: Provide a graphical analysis of the effect of a temporary but persistent increase in total factor…
A: In the Real Business Cycle (RBC) model, a temporary but persistent increase in total factor…
Q: Why do we assume that changes to Total Factor Production are persistent? i know that its important…
A: Total Factor Productivity (TFP) is a measure of an economy's or an organization's productivity. It…
Q: Is it fair to deem some activities virtuous and others not in an imperfect market? Please provide…
A: A market that deviates from the idealized model of perfect competition, where the overall surplus is…
Q: The table below shows the daily costs of Cathy's Corn Stand. Cathy sells her corn cobs in a…
A: Economic costs involve not just the accounting costs but also the opportunity cost of making one…
Q: If the number of unemployed equals 240,000 and the number of employed equals 300,000, the…
A: The labor force participation rate is a measure that represents the proportion of the working-age…
Q: 3. Excess supply with union wages Consider the housing construction industry. Assume that the…
A: Answer: (1). The following graph shows the impact of wage increase from $15 to $20 per hour on the…
Q: "Lemonade in Winter" includes the cost of the ingredients, but not the cost of labor True False
A: The expenditures or expenses incurred by a firm in the production, acquisition, or operation of…
Q: Determine the closest value of x in the following cash flow diagram that would make the equivalent…
A: Net present worth of all cash flows is $20,000 Interest rate i=12% Present worth factor: Single…
Q: What is the Present worth difference of Alternative A and B. Capital investment Annual Cash inflow…
A: For present worth analysis, both alternatives should have equal service life otherwise take the LCM…
Q: Economics suppose that the GDP of california increases by 8.0% each year. how long will it take…
A: Growth refers to the process of increasing or expanding in size, quantity, or importance. It is a…
Q: If the spot exchange rate moves from $1.60 per pound to $1.40 per pound we would say that: the…
A: Given Initially, the exchange rate is $1.6 per pound and then it changes to $1.40 per pound. This…
Q: re is a road between the suburbs and downtown. The road becomes congested at rush hour. As long as…
A: There is a road between the suburbs and downtown. As long as fewer than 99 people use the road…
Q: If $1,134,000 of 11% bonds are issued at 102 1/2, the amount of cash received from the sale is…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: Consider the game represented below. 2 1 W X y a 2,5 0,0 0,1 b 2,4 2,3 5,9 C 6,4 6,9 8,8 Find all…
A: The stable outcomes in a game where each player opts for a specific action or strategy, and no…
Q: What will happen to the trade balance and the real exchange rate of a small open economy when…
A: Exchange rate refers to the value of one currency in terms of another currency. It represents the…
Q: Use the demand table (i.e., the demand curve) below to answer questions 2, 3, 4, and 5. Quantity…
A: Price elasticity of demand is a measure of the responsiveness of quantity demanded to changes in…
Q: PLEASE SUBMIT AN IMAGE OF THE REQUESTED ILLUSTRATION DISCUSSED BELOW. (PLEASE MAKE SURE YOU LABEL…
A: In economics and business, there are three key concepts: total cost, fixed cost, and variable cost.…
Q: Why is an increase in the concentration of carbon dioxide in the atmosphere associated with a social…
A: An increase in the concentration of carbon dioxide (CO2) in the atmosphere is related to a social…
Q: Explain how fiscal policy, monetary policy, and economic factors influence public budgeting. In what…
A: Macroeconomic unpredictability and uncertainty may have been caused by an assortment of internal as…
Q: Please no written by hand solution Assume that the potential GDP of the economy of Arion is $1,160,…
A: The demand for final goods and services at the specified price level is known as the aggregate…
Q: Herbal Resources is a small but profitable producer of dietary supplements for pets. This is not a…
A: Economic Value Added (EVA) is a crucial indicator for assessing a company's profitability and…
Q: When you consider both of the effects on the slope of the pricing unction (-t/H) from a household…
A: When considering the effects of higher income on the slope of the pricing function (-t/H), it is…
Q: What is the Present Worth of Machine A? A firm is considering the purchase of one of two new…
A: Given Initial Cost FC =3400 Service life 3 year Salvage value =100 Operating cost =2000 per year…
Q: The avocado growing industry in Chile is perfectly competitive, and each producer has a long-run…
A: In perfect competition, There exists a large number of buyers and sellers. The firm will produce…
Q: Suppose that the market for sports watches is a competitive market. The following graph shows the…
A: In a competitive market, there are large number of firms selling identical products. Firm's ATC is…
Q: The benefit of saving is the: a. inflation rate b. real interest rate c. saving rate d. nominal…
A: Savings refers to the act of setting aside a portion of one's income or resources for future use…
Q: A firm has total revenue (TR) and total cost (TC) curves as shown on the following diagram. To…
A: Here we are given the total revenue and total cost curves. The total revenue curve reaches to a…
Q: Suppose that the market for cigarettes in a particular town has the following supply and demand…
A: General equilibrium refers to a theoretical concept in economics that describes a state in which all…
Q: D 0 00 10 20 030 (In 2000 dollars) 4,000 6,500 8,600 12,000 Nominal GDP (In current dollars) 1,800.…
A: The GDP deflator, also known as the implicit price deflator for GDP, is a measure that reflects the…
Q: In each of the following games, how many pure strategies (complete plans of action) are available to…
A: In game theory, pure strategies refer to specific, predetermined courses of action that a player can…
Q: The economy of Winterspring is currently in an equilibrium depicted by point Eo on the graph. Now…
A: Aggregate demand refers to the total demand for commodities and services made by all the economic…
Q: For which of the following type of countries is the divergence betwee capita measured at official…
A: Purchasing Power Parity (PPP) is an economic concept that compares the purchasing power of different…
Q: the question is asking decrease in consumer confidence, so all things should be the opposite
A: Aggregate demand refers to the overall spending on final goods and services within an economy. It…
Q: The following questions requires two answers. Be sure to complete them all! Refer to the diagram to…
A: International trade involves the exchange of goods, services, and capital across national…
Q: 8. Assume there are two firms in an industry that generate a nasty pollutant. The government wants…
A: A negative externality occurs when the actions of a producer or consumer impose costs on third…
Q: Write an introduction and conculsion to this essay?
A: Economic reforms are planned adjustments and actions taken by governments to enhance the efficiency…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Methods of Economy Studies An investment of P 250,000 can be made in a project that will produce a uniform annual revenue of P 192,800 for 5 years and then have a salvage value of 10% of the first cost. Operation and maintenance will be P 72,000 per year. Taxes and insurance will be 4% of the first cost per year. The company expects capital to earn 20% before income taxes. Show whether or not the investment is justified economically using1. Present Worth (PW) method2. Future Worth (FW) method3. Annual Worth (AW) method4. Rate of Return (ROR) method5. Payback (Payout) method1. The Present Worth Method A project your firm is considering for implementation has these estimated costs and revenues: an investment cost of $50,000; maintenance costs that start at $5,000 at the end of year (EOY) 1 and increase by $1,000 for each of the next 4 years, and then remain constant for the following 5 years; savings of $20,000 per year (EOY 1–10); and finally a resale value of $35,000 at the EOY 10. If the project has a 10-year life and the firm’s MARR is 10% per year, what is the present worth of the project? Is it a sound investment opportunity?E2 A steel bridge on Louisiana state highway near the Gulf of Mexico is costing $450.000 yearlyin maintenance large chipping, priming, and painting. It originaly cost $1.600.000 when it wasbuilt 15 years ago. The Louisiana bridge engineers estimate that its remaining life is 10 years,then it will need to be replaced because of increased traffic. Its salvage value at any point intime is zero, because the cost of demolition will most like equal its value as scrap steel.A concrete bridge is considered to be the best challenger. It will cost $3.000.000 to build and$100.000 annually in maintenance costs. Its estimated life is 50 years. Its resale value may becounted as zero at any time during its life.No taxes of any kind will be considered for this government project. All costs are in constantdollars of year 0. Inflation may be ignored. Assume that annual benefits for either structure areexactly the same. A discount rate of 10 percent is to be used in analysis.(a) What is the economic life…
- A fabrication company engaged in production with a capacity of 150, 000 pieces per year. But, it is just operating at 70% of its full capacity. The company has an annual income of P 250, 000.00, annual fixed cost are P 50, 000.00 and variable costs are P 1.00 per unit. How many productions of parts must be produced for break-even point? Given: Required: Solution: refer to this textbook: https://drive.google.com/file/d/1h4ra80IE8IRtYyja16iK6TtjCrTDi73j/view?usp=sharingChambers Company has just gathered estimates forconducting a break-even analysis for a new product.Variable costs are $7 a unit. The additional plant willcost $48,000. The new product will be charged $18,000a year for its share of general overhead. Advertisingexpenditures will be $80,000, and $55,000 will be spenton distribution. If the product sells for $12, what is thebreak even point in units? What is the break even pointin dollar sales volume?1. A machine cost P10M and will have scrap value of 10% of the first cost at theend of 10 years. If money is worth 12%. Find the annual investment and thecapitalized cost of the machine.
- Two lathes are being considered in the manufacture of certain machine parts. Data is given below, all cost in peso: LATHE A LATHE B First Cost 40,000 56,000 Salvage Value 5,000 7,000 Annual Maintenance 2,000 2,800 Operation, Cost/hour 4 3.5 Life, in years 10 12 Time per part (hours) 0.40 0.25 REQUIRED: Determine the number of machine parts/year that could be produced so that 2 lathes will be equally economical if the MARR is 18%. Use AWM If the number of parts is 10,000 units, which lathe will you recommend? Use ROR If the number of parts is 10,000 units, which lathe will you recommend? Use PWM If the number of parts is 10,000 units, which lathe will you recommend? Use EUACEngineering Economy Calculate the Present Worth. Don't use Excel You bought a new car which you intend to use as a public utility vehicle for P950,000. The expected life of the car is ten (10) years for its intended use. Your driver and you agreed that for the first five (5) years , your “boundary” is P1,500.00 per day and P1,000.00 per day for the rest of its economic life. You also expected a repair and maintenance costs of P30,000 every six (6) months from year one (1) to five (5) and P50,000 from year six (6) to ten (10). At the end of 10 years you can sell the car for P100,000. If your MARR on invested capital is 15% every (6) months, determine whether this is a good investment. Use the Annual Worth , Present Worth , or the Future Worth method in your solution. Indicate all other assumptions you use in your analysis.4 QUESTION 9 A new production system for a factory is to be purchased and installed for $153,484. This system will save approximately 300,000 kWh of electric power each year for a 4year period. Assume the cost of electricity is $0.10 per kWh, and factory MARR is 10% per year, and the salvage value of the system will be $8,496 at year 4 Calcutate the FW of the above investment and insert the result below.
- Problem Solving. Solve the following problems completely. 4. Atty. Gacayan invested P280, 000 which will be used in a project that will produce auniform annual revenue of P180,000 for 5 years and then have a salvage value of 16% ofthe investment. Out-of-pocket costs for operation and maintenance will be P80,000 peryear. Taxes and insurance will be 3% of the first cost per year. Atty Gacayan expectscapital to earn not less than 30% before income taxes. Determine if the investment is goodand Calculate the following:a. Calculate using Rate of Return Method.b. Payback period of the investment.A five-year project has an initial fixed asset investment of $613,600, an initial net working capital investment of $22,200. The project will have an annual operating cash flow (OCF) of (-$76,540). The fixed asset is fully depreciated over the life of the project and has no salvage value. The net working capital will be recovered when the project ends. The required return is 11.7 percent. What is the project's equivalent annual cost, or EAC? O-$248,052.76 O-$182,309.18 O-$147,884.01 O $242,212.22PLEASE ANSWER AND SHOW SOLUTION Machine cost = $15,000; Life = 8 years; salvage value = $3000. What minimum cash return would the investor demand annually from the operation of this machine if he desires interest annually at the rate of 8% in his investment and accumulates a capital replacement fund by investing annual deposits at 5%?