Plan A(Depreciation 3422 ; total anual cost 23922)Plan B(Depreciation 4277 ; total anual cost 22857)Plan C(Depreciation 7071; total anual cost 24, 891)Plan D(Depreciation 7413; total anual cost 22533)All I need is a solution for the question. Our subject is engineering economics and the lesson is economic study method 2.) A company is going to buy a new machine for manufacturing its product. Four differentmachines are available. Cost, operating and other expenses are as follows:ABD享First costP24,0001,30011,600P30,000P49,600P52,0002,0202,000Power per yearLabor per yearMaintenance per yearTaxes and insurance1,3609,3202,4004,2001,3003%2,8003%1,9007003%3%Life, years55Money is worth 17% before taxes to the company. Which machine to be chosen?

The financial worth of a resource diminishes over the long haul because of utilization, mileage, or…

Plan A (Depreciation 3422 ; total anual cost 23922) Plan B (Depreciation 4277 ; total anual cost 22857) Plan C (Depreciation 7071; total anual cost 24, 891) Plan D (Depreciation 7413; total anual cost 22533) All I need is a solution for the question. Our subject is engineering economics and the lesson is economic study method

Plan A (Depreciation 3422 ; total anual cost 23922) Plan B (Depreciation 4277 ; total anual cost 22857) Plan C (Depreciation 7071; total anual cost 24, 891) Plan D (Depreciation 7413; total anual cost 22533) All I need is a solution for the question. Our subject is engineering economics and the lesson is economic study method

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Cfood Co. is considering acquisition of Tfood Co. Some financial information on the two companies is given below (in $ million): Cfood Co. Tfood Co. Price per share 49 13 # of shares 10 2.5 Market value 490 32.5 If Cfood acquires Tfood, the operating cost (after-tax) can be reduced by $2m, and sales (after-tax) can be increased by $3m (the synergies) per year in perpetuity. The cost of capital is 19%. Cfood is considering two alternatives for the acquistion: 1. buying all the shares of Tfood at $15.6 per share. 2. issuing 1 shares for every 3 shares of Tfood Workout on this merger deal and answer the following questions. i. What is the economic gain from the merger? ii. What will be the NPV of merger under cash offer? v. What is the cost of merger under stock offering? Also compute the merger's NPV for Cfood's original shareholders. i. What is the economic gain from the merger? ii. What…
4) Which of the following power plants is better investment, assuming 8% interest on the sinking fund and no salvage value in either case, taxes/insurance at 10% and interest on capital at 12%. Use ROR and Present Worth Method. - Coal plant which costs P1M, last 10 years and cost annually P100k to operate. - Fuel-oil plant which costs P800k will last 7 years and cost annually P70k to operate.
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