Please answer number 3.Engineering Economics 3. A contractor won a bid to repave so many kilometers of a badly damaged concrete road in the south. Heis offered a crane-mounted pneumatic breaker which will cost P 1,200,000 with a salvage value of P150,000 at the end of its estimated life of 15 years. The annual cost of maintenance, taxes, licenses andinsurance is 12% of the first cost, regardless of how the equipment is used. The variable cost is P 550 perday. The equipment is capable of breaking 30 sq.m. of 20-centimeter-thick of concrete road per day.Without equipment, two laborers receiving P 50 each per day could break an average of one sq.m. of thesame road per day. How many sq.m. of the road per year must the equipment break to make the machinean economical investment? Assume interest on investment to be 12% of the first cost.

Interest on investment the occasional receipt of inflows on monetary instruments like bonds,…

ifered a crane-mounted pneumatic breaker which will cost P 1,200,000 with a s 000 at the end of its estimated life of 15 years. The annual cost of maintenance, t rance is 12% of the first cost, regardless of how the equipment is used. The variable The equipment is capable of breaking 30 sq.m. of 20-centimeter-thick of concr hout equipment, two laborers receiving P 50 each per day could break an average o e road per day. How many sq.m. of the road per year must the equipment break to

ifered a crane-mounted pneumatic breaker which will cost P 1,200,000 with a s 000 at the end of its estimated life of 15 years. The annual cost of maintenance, t rance is 12% of the first cost, regardless of how the equipment is used. The variable The equipment is capable of breaking 30 sq.m. of 20-centimeter-thick of concr hout equipment, two laborers receiving P 50 each per day could break an average o e road per day. How many sq.m. of the road per year must the equipment break to

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 7E

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