Required information Three alternatives are being evaluated based on 7 different attributes, all of which are considered of equal importance. Determine the weight to assign to each attribute if the first one is twice as important as the others. The weight to assign to the first attribute is0.1428 The weight to assign to each of the other attributes is 0.4285

Required information Three alternatives are being evaluated based on 7 different attributes, all of which are considered of equal importance. Determine the weight to assign to each attribute if the first one is twice as important as the others. The weight to assign to the first attribute is0.1428 The weight to assign to each of the other attributes is 0.4285

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 2E

See similar textbooks

Similar questions

I want you to provide me the Cash Flow diagram of the problem. Only cash flow diagram, the solution is already there. Thanks in advance! The annual estimated cash flow is $140,000. The salvage value will be 12% of the initial price after 5 years. The discount rate (r) is 18% Let us assume the initial price of the doughnut machine be X. PV of cash inflows=PV of cash outflows$140,000×PVAF4,18%+.12X×PVF5,18%=X$140,000×2.69006180465+.12X×0.43710921621=X$376,608.652651=X-0.05245310594$376,608.652651=0.94754689406XX=$397,456.479475 The maximum purchase price of the doughnut machine is $397,456.48.
Need answers,ASAP 4. a sediment control project in nueva vizcaya requires an initial investment of 145,000, has a salvage value of 22,000 after six years, incurs annual expenses of 10,000, and provides annual revenue of 18,000. using a marr of 10%, determine the aw of this project.
2.5. An electric cooperative is considering the use of a concrete electric pole in the expansion of its power distribution lines. A concrete pole costs P18,000 each end will last 20 years. The company is presently using creosoted wooden poles which cost P12,000 per pole and will last 10 years. If money is worth 12 per cent, which pole should be used. Assume annual taxes amount to 1 per cent of first cost and zero salvage value in both cases
A VOM has a selling price of P 400. If its selling price is expected to decline at a rateof 10% per annum due to obsolescence, what will be its selling price after 5 years?· A. P 222.67· B. P 212.90· C. P 236.20· D. P 231.56
Maintenance expenses for a bridge on the Ohio River are estimated to be $25,000 per year for the first 6 years, followed by three seprate $100,000 expenditures in years 12, 15, and 18 . The expected life of the bridge is 50 years , if i = 7% per year, what is the equivalent uniform annual expenses over the entire 50-year period? a) S-16,622 b) $-15,368.03 c) $ -14,725.52 d) None of the above
Last two parts only 8,9 Plz asap
1. Choose True or False for each of the following statements: a) Sensitivity analysis is concerned with determining how much variation infinancial data, the decision maker can have to affect the economic decision. b) Useful life is a period of time that yields the minimum equivalent uniformannual cost of owning and operating as asset. c) Depreciation is a reduction in value of an asset, which reflects its actualusage during ownership. d) In an optimistic estimation of MARR, we expect to see a lower MARR thanthat of pessimistic. e) If one of extreme FW values, i.e., optimistic and pessimistic scenarios, ofan alternative is positive and another one is negative, a go-decision ismade without further analysis. f) Recovery period refers to the depreciable life of an asset. g) Spider plot is used to show the amount of changes on the value of morethan one factor at a time. h) The book value at the end of useful life might not be equal to the salvagevalue when declining balance with switchover…
2.4.1 Total Cost in Material SelectionIn many cases, economic selection among materials cannot be based solely on the costs ofmaterials. Frequently, a change in materials will affect the design and processing costs, and shipping costsmay also be altered.Care should be taken in making economic selections between materials to ensure that anydifferences in shipping costs, yields, or resulting scrap are taken into account. Commonly, alternativematerials do not come in the same stock sizes, such as sheet sizes and bar lengths. This may considerablyaffect the yield obtained from a given weight of material. Similarly, the resulting scrap may differ forvarious materials.In addition to deciding what material a product should be made of, there are often alternativemethods or machines that can be used to produce the product, which, in turn, can impact processingcosts. What could be the factors affecting the cost of materials that one should consider?
Assuming monetary benefits of an information system at $85,000 per year, one-time costs of $75,000, recurring costs of $35,000 per year, a discount rate of 12 percent, and a 5-year time horizon, calculate the net present value (NPV) of the system’s costs and benefits. Also calculate the overall return on investment (ROI) of the project and then present a break-even analysis (BEA). At what point does break-even occur?
You have been asked by the chief financial officer of your company to estimate what thecompany’s share price will be at the end of four years from today. Your company has recentlypaid a dividend of $1.00 which is expected to grow at 5% p.a. over the foreseeable future. Ifthe company’s required rate of return on equity is 10% your price estimate at the end of year 4will be closest to: A. $20.00.B. $21.00.C. $24.30.D. $25.50.
During your first month as an employee at Engro. Industries (a large drill-bit manufacturer),you are asked to evaluate alternatives for producing a newly designed drill bit on a turningmachine. Your boss’ memorandum to you has practically no information about what thealternatives are and what criteria should be used. The same task was posed to a previousemployee who could not finish the analysis, but she has given you the following information:An old turning machine valued at $350,000 exists (in the warehouse) that can be modified forthe new drill bit. The in-house technicians have given an estimate of $40,000 to modify thismachine, and they assure you that they will have the machine ready before the projected startdate (although they have never done any modifications of this type). It is hoped that the oldturning machine will be able to meet production requirements at full capacity. An outsidecompany, Descon Engg. Inc., made the machine seven years ago and can easily do the…
These data were derived from a forest inventory and are to be used to calculate the best (most revenue return) rotation. The manager wishes to maximize net income and has the following information: Establishment Costs: $175/acre Thinning and burning at age 17 cost: $75 Stumpage sells for: $41/unitvol MAR: 6.7% Annual Expenses: $8/acre Inventory Data over Life of the Forest Stand (Ages 0-60 years) Stand age (vol/acre) 15 5.13 20 13.98 25 25.22 30 35.11 35 44.19 40 51.85 45 56.79117447 50 63.03092644 55 68.76322479 60 74.05934015