Q: A professional photographer who specializes in wedding-related activities paid $47,500 for equipment…
A: Salvage value is the estimated resale value of an asset at the end of its useful life. It is…
Q: t and interest rate of 10% per year, the perpetual equivalent annual equivalent cost of $70000 now,…
A: Annual cost = $70000 At the end of six year the cost = $100000 From ten year the cost = $10000…
Q: Estimate the following breakeven quantity per year. The breakeven quantity per year is determined to…
A: Formula is Break-Even point (units) = Fixed Costs ÷ (Sales price per unit – Variable costs per…
Q: Ecology group wishes to purchase a piece of equipment for recycling of various metals. Machine 1…
A: * SOLUTION :-
Q: Two membrane systems are under consideration for treating cooling tower blowdown to reduce its…
A: Low-pressure machine fixed cost (FCL) is $465. Operating cost (OPL) is $485. Production (PL) is…
Q: An IE works in the automation department of a surgical equipment manufacturing company that produces…
A: Solution: Let n cameras are required to be assembled EUAC of make option = 175000*(A/P,12%,5) +…
Q: Why is an incremental analysis necessary when conducting a rate of return evaluation of cost…
A: Incremental research/analysis is a technique of decision making in company to find out the real gap…
Q: Two methods can be used for producing expansion anchors. Method A costs $80,000 initially and will…
A: Present worth = -P+(AR-Am)( P/A,i%,n)+F(P/F,i%,n)where P is the initial cost, AR is the annual…
Q: The fixed cost at Harley Motors is $5.4 million annually. The main product has revenue of $96 per…
A: Break-even analysis involves calculating and evaluating a business security limit based on revenue…
Q: Mid-Valley Industrial Extension Service, a state-sponsoredagency, provides water quality sampling…
A: IH: initial cost (IC) is $125,000, annual operating cost (AC) is 15,000. Annual salary cost (AS) is…
Q: Charlie’s Truck Repair and Service has a new contract that requires him to purchase and maintain new…
A: Table 1 shows the cash flow of different projects.
Q: A window frame manufacturer is searching for ways to improve revenue from its triple-insulated…
A: Investment: The action in which money is invested in making a profit.
Q: A chemical engineer is considering two sizes of pipes for moving distillate from a refinery to the…
A: The given information can be tabulated as follows.
Q: You work for Bellevue Window Products. While performing an analysis for a new window product, you…
A: (a) Variable cost (VC) is $1,700,000 per year. Annual production rate (AQ) is 40,000 per year.…
Q: The annual worth for years 1 through infinity of $50,000 now, $10,000 per year in years 1 through…
A: Annual worth: The yearly worth is the net of the relative multitude of advantages and costs caused…
Q: The M&O cost for alternative S is $
A: Maintenance and Operations (M&O) Tax Rate: The M&O segment is the assessment rate that is…
Q: One method for developing a mine containing an estimated 100,000 tons of ore will result in the…
A: Excess of total revenue over total cost is termed as profit. Total revenue is equal to the value of…
Q: An on-line commercial directory service must decide between composing the ads for its clients…
A: Given, Total cost = $46,500Salvage value = $2,300Useful life = 3 yearsWage = $69,000Average cost =…
Q: meant by the term equal service alternative?
A: Equal service means that the products or commodities provide service for an equivalent period of…
Q: Five mutually exclusive cost alternatives that have infinite lives are under consideration for…
A: The firm should choose an alternative that has the lowest cost. The present value of a project=…
Q: Identify at least three noneconomic attributes that may be used as evaluation criteria in the…
A: Decision-making is important to leaders, government and managers. It involves describing the problem…
Q: EP Electric has identified two new methods to treat its cooling water. Alternative I (for inflow)…
A:
Q: A manufacturer of diaphragm seals has identified the cash flows shown for manufacturing and sales…
A: We will use the concepts such as No return payback, net annual revenue to answer this question.
Q: The cost of Next best alternative forgone is called
A: In economics, the cost are categories in two term, one is explicit cost and second is implicit cost
Q: An engineer must decide between two ways to pump concrete to the top of a seven-story building. Plan…
A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, as per the…
Q: Wall's Pharmacy will have to sell a new product that has an estimated revenue of $4,800 per month…
A: Given Data, Estimated revenue = $4800 per month. Cost = $1800 per month. Initial purchase= 28000…
Q: The Country Fields Retirement Community charges $6000/month for a single senior citizen to reside in…
A: Answer: Given, The community charges $ 6000/month for a single senior citizen. Let the number of…
Q: Two methods to control newly discovered poisonous weeds in bar-ditches on the sides of county roads…
A: Given information: Cost of chemical is $40 per liter One liter can treat 8 km Treatment is applied…
Q: In order to provide drinking water as part of its 50-year plan, a west coast city is considering…
A:
Q: A remotely located air sampling station can be powered by solar cells or by running an electric line…
A: Future value can be calculated by using the following formula.
Q: The manager of a canned food processing plant must decide between two different labelling machines.…
A: Assuming that a firm is confronted with two totally unrelated tasks, the determination of one of…
Q: James, the plant manager at Global Foundries (GF), received estimates from two contractors to…
A: Initial cost of proposal A (FCA) is $250,000. Time period (n) is 4. Annual maintenance cost (MO) is…
Q: Mid-Valley Industrial Extension Service, a state-sponsoredagency, provides water quality sampling…
A: The annual worth of in house project can be calculated as follows:
Q: The pieces of equipment required to place 160 cubic yards of concrete in 1 day by experienced…
A: Variable costs are the total obligation of the firm per time period for all the variable inputs of…
Q: What evaluation criterion is used in economic analysis?
A: In economic analysis, while judging the viability of a project or while making any investments…
Q: The manager of a canned-food processing plant has two labeling machine options. On the basis of a…
A: Table 1 shows the cash flow.
Q: A company that manufactures amplified pressure transducers wishes to decide between the machines…
A: The incremental rate of return can be calculated as follows.
Q: Handheld fiber optic meters with white light polarization interferometry are useful for measuring…
A: The cost of production is the summation of all the costs incurred while producing a commodity in the…
Q: An investment of $60,000 ten years ago resulted in uniform income of $10,000 per year for the…
A: The rate of return on investment can be calculated by the following formula : R= Net ProfitCost of…
Q: A professional photographer who specializes in wedding-related activities paid $49,000 for equipment…
A: here by using the annual worth formula we calculate the number of year by using the given…
Q: b) What is the cost of each instalment per year c) Given two rates of return guess values as 2.5%…
A: Answer in Step 2
Q: You work for Bellevue Window Products. While performing an analysis for a new window product, you…
A: The breakeven production level is achieved at a quantity where the total revenue to be generated…
Q: ABC Company has revenues of Php500,000, variable costs of Php350,000, and fixed cost of Php135,000.…
A: Answer:
Q: A piece of onboard equipment has a first cost of $600,000, an annual cost of $92,000, and a salvage…
A:
Q: The breakeven point decreases if A. contribution margin per unit decreases and other factors remined…
A: Break even analysis is used to know if the initial costing is being recovered or not. it is…
Q: A biofuel subsidiary of Petrofac, Inc. is planning to borrow $12 million to acquire a small…
A: GIVEN A biofuel subsidiary of Petrofac, Inc. is planning to borrow $12 million to acquire a small…
Q: biofuel subsidiary of Petrofac, Inc. is planning to borrow $12 million to acquire a small…
A: Annual worth represents the net benefits and cost which is incurred by firm in a year , and we…
Q: A land development company is considering the purchase of earth-moving equipment. The equipment will…
A: Cost: Cost indicates the measure of cash that an organization spends on the creation or creation of…
Q: For the two alternatives, demonstrate that the sum of the incremental cash flow series (Z − X) over…
A: Table 1 shows the cash flow: Incremental cash flow between alternatives Z and X can be calculated…
Q: In the breakeven analysis, fixed costs are constant. Over time these expenses can change. Give some…
A: Fixed costs of production are that part of company's costs which remains same at each level of…
Step by step
Solved in 2 steps
- An investment of $60,000 ten years ago resulted in uniform income of $10,000 per year for the 10-year period. The rate of return on the investment was closest to: (a) 10.6% per year (b) 14.2% per year (c) 16.4% per year (d) 18.6% per yearmeant by the term equal service alternative?What is the present worth difference between an investment of $30,000 per year for 40 years and aninvestment of $30,000 per year forever at an interest rate of 15% per year?
- The annual worth for years 1 through infinity of $50,000 now, $10,000 per year in years 1 through 15, and $20,000 per year in years 16 through infinity at 10% per year is closest toAero Serve, Inc. manufactures cleaning nozzles for reverse pulse jet dust collectors. The company spent $40,000 on a production control system that will increase profits by $11,096 per year for 5 years. The rate of return per year on the investment is closest to: (a) 20% (b) 16% (c) 12% (d) Less than 11%The State of Chiapas, Mexico, decided to fund a program for literacy. The first cost of $300,000 now and an updated budget of $145,000 every 7 years forever is requested. Determine the perpetual equivalent annual cost at an interest rate of 10% per year. The perpetual equivalent annual cost is $− .
- A process can be completed using either Alternative X or Y, where Y is an automated version of X. Alternative X has fixed costs of $10,000 per year with a variable cost of $50 per unit. If the process is automated, the fixed cost for Y will be $5,000 per year and its variable cost will be only $30 per unit. The minimum number of units that must be produced each year for alternative Y to be favored is closest to:a. Alternative Y will be favored for any level of productionb. 125c. 375d. Alternative X will be favored for any level of productionWhat is meant by the term equal service?Two methods can be used for producing solar panels for electric power generation. Method 1 will have an initial cost of $550,000, an AOC of $160,000 per year, and $125,000 salvage value after its 3-year life. Method 2 will cost $830,000 with an AOC of $120,000, and a $240,000 salvage value after its 5-year life. Assume your boss asked you to determine which method is better, but she wants the analysis done over a 3-year planning period. You estimate the salvage value of method 2 will be 35% higher after 3 years than it is after 5 years. If the MARR is 10% per year, which method should the company select
- Identify at least three noneconomic attributes that may be used as evaluation criteria in the decisionmaking process.Oil from a specific type of marine microalgae can be converted into biodiesel that may serve as an alternate transportable fuel for automobiles and trucks. If lined ponds are used to grow the algae, the construction cost is $13 million and the M&O cost is estimated at $2.1 million per year. Alternatively, if long plastic tubes are used for growing the algae, the initial cost will be higher at $18 million, but less contamination will render the M&O cost lower at $0.41 million per year. At an interest rate of 10% per year and a 5-year project period, which system is better—ponds or tubes? Use a present worth analysis.Two methods can be used to produce solar panels for electric power generation. Method 1 will have an initial cost of $800,000, an AOC of $150,000 per year, and $125,000 salvage value after its 3-year life. Method 2 will cost $910,000 with an AOC of $125,000 and a $230,000 salvage value after its 5-year life. Assume your boss asked you to determine which method is better, but she wants the analysis done over a three-year planning period. You estimate the salvage value of Method 2 will be 40% higher after three years than it is after five years. If the MARR is 14% per year, which method should the company select? Which method should the company select?