Farmers are fighting a fungal growth that can cause crop failure. If 7,663 hectares of farmland are infected right now, and the infected area decreases by 10% every year, how much farmland will be infected in 10 years?
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- "The heat loss through the exterior walls of a certain poultry processing plant is estimated to cost the owner $4000 next year. A salesperson from Superfiber Insulation, Inc., has told you, the plant engineer, that he can reduce the heat loss by 70% with the installation of $20000 worth of Superfiber now. If the cost of heat loss rises by $30 per year (uniform gradient) after the next year and the owner plans to keep the present building for 14 more years, what is the present worth of the savings? Would you recommend installing the insulation now given that the interest rate of 7.68% year?" A 255986.64 B 316901.03 C 24457.35 D 222355.62 E 207412.21A southwestern city that has 170,000 households is required to install treatment systems for the removal of arsenic from drinking water. The annual cost is projected to be $50 per household per year. Assume that one life will be saved every three years as a result of the arsenic removal system andthat the EPA values a human life at $4.8 million. Use a discount rate of 8% per year and assume the life is saved at the end of each three-year period.Utilize a conventional B/C ratio to determine if the project is economically justified.A chemical company is planning to release a new brand of insecticide that will kill many insect pests but not harm useful pollinators. Buying new equipment to manufacture the product will cost $15 million. The equipment is expected to have a lifetime of nine years and will be depreciated by the straight-line method over its lifetime. The firm expects that they should be able to sell 1,400,000 gallons per year at a price of $65 per gallon. It will take $36 per gallon to manufacture and support the product. If the company's marginal tax rate is 40%, what are the incremental earnings after tax in year 3 of this project? $23.36 million $9.58 million $12.72 million $15.30 million $14.30 million $24.36 million
- If the farmer uses pesticides he expects a crop of 60,000 bushels; if he does not use pesticides he expects a crop of 50,000 bushels. The cost of pesticides is $30,000 and the other costs associated with planting and harvesting the crop total $450,000. The price of corn at harvest time will either be $9.00 with probability of 0.50 or it will be $11.00 with probability 0.50, so if the farmer decides to sell the crop at harvest, the expected price per bushel that he will receive is $10.00. If the farmer uses pesticide and decides to sell the crop at harvest, what is his expected profit? a. $120,000.00 b. $150,000.00 c. $180,000.00 d. $20,000.00An $80,000 baling machine for recycled paper was purchased by the XYZ company two years ago. The current MV of the machine is $50,000, and it can be kept in service for seven more years. MARR is 12% per year and the projected net annual receipts (revenues less expenses) and end-of-year market values for the machine are shown below. When is the best time for the company to abandon this project?Vernon-Nelson Chemicals is planning to release a new brand of insecticide, Bee-Safe, that will kill many insect pests but not harm useful pollinators. Buying new equipment to manufacture the product will cost $15 million. The equipment is expected to have a lifetime of 10 years and will be depreciated by the straight-line method over its lifetime. The firm expects that they should be able to sell 1,500,000 gallons per year at a price of $53 per gallon. It will take $36 per gallon to manufacture and support the product. If Vernon-Nelson's marginal tax rate is 40%, what are the incremental earnings after tax in year 3 of this project?
- The Crockett Land Winery must replace its present grape-pressing equipment. The two alternatives are the Quik-Skwish and the StompMaster. The annual operating costs increase by 12% each year as the machines age. If the interest rate is 9%, which press should be chosen? A railroad branch line to a landfill site is to be constructed. It is expected that the railroad line will be used for 15 years, after which the landfill site will be closed and the land turned back to agricultural use. The railroad track and ties will be removed at that time.Toxins from a newly established industrial plant, which is expected to operate for 5 years, threatening a community. The area is used by residents for agricultural and farming purposes. It is estimated that 500kg of vegetables can be consumed every year for the next 5 years if it is not polluted. It is also forecasted that the cost of retrofitting the plant is $15,000 payable upfront; this covers the 5-year period. Assume that the rate of interest is 10 percent and the price of a kg of vegetable is $10/kg.i. Is this pollution control initiative economically feasible?The heat loss through the exterior walls of a processing plant is estimated tocost the owner $3,000 next year. A salesman from Super fiber, Inc. claims he canreduce the heat loss by 80% with the installation of $15,000 of Super fiber now.If the cost of heat loss rises by $200 per year, after next year , and the ownerplans to keep the building ten more years, what is his rate of return, neglectingdepreciation and taxes?
- The heat loss through the exterior walls of a processing plant is estimated to cost the owner $3,000 next year. A salesman from Superfiber, Inc. claims he can reduce the heat loss cost by 80% with the installation of $15,000 of Superfiber now. If the cost of heat loss rises by $200 per year, after next year (gradient), and the owner plans to keep the building ten more years, what is his rate of return, neglecting depreciation and taxes Show complete solution pls. No excel computationPollution control equipment must be purchased to remove the suspended organic material from liquid being discharged from a vegetable packing plant. Two alternative pieces of equipment are available that would accomplish the task. A Filterco unit costs $7000 and has a 5-year useful life. A Duro unit, on the other hand, costs $10,000 but will have a 10-year useful life. With inflation, equipment costs are rising at 5% per year, compounded annually, so when the Filterco unit needed to be replaced, the cost would be much more than $7000. Based on a 10year analysis period, and a 20% minimum attractive rate of return, which pollution control equipment should be purchased?A $4,875 processing machine purchased by FedEx to replace quarantined workers during the pandemic will generate $8,000 worth of packages over each of the next two years and has a salvage value of zero. FedEx uses a 5% discount rate. Set up the equation for finding the Net Preset Value of the investment.