Engineering Economy
Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
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Chapter 8, Problem 28P
To determine

Calculate the after tax cash flow.

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A doctor is on contract to a medium-sized oil company to provide medical services at remotely located, widely separated refineries. The doctor is considering the purchase of a private plane to reduce the total travel time between refineries. The doctor can buy a used Learjet 31A now for $1.700 million or wait for a new very light jet (VLJ) that will be available 3 years from now. The cost of the VLJ will be $2.600 million, payable when the plane is delivered in 3 years. The doctor has asked you, his friend, to determine the present worth of the VLJ so that he can decide to buy the used Learjet now or wait for the VLJ. The MARR is 14.00% per year, and the inflation rate is projected to be 3.200% per year. a) What is the present worth of the VLJ with inflation considered? b) Which plane should he buy? The present worth of the VLJ with inflation considered is He should buy the used Learjet now ✓
Allina opens an exotic bakery. Her capacity for the month is eight hundred (800) Love Cherry Short cakes. On average, in a month, she pays a fixed amount for water, electricity, security and a loan of TTD100.00, TTD1,200.00, TTD2,700.00 and TTD4,000.00 respectively. In addition, she estimates that TTD50.00 more must be paid for each Love Cherry Short cake she makes and sells. If she sells one Love Cherry Short cake for TTD90.00. Identify and clearly state all variables used. Determine the following: Allina’s total cost and revenue functions.   From part a) state the domain and range the total cost and revenue functions. Allina’s total cost when she produces and sells one thousand Love Cherry Short cakes.                                 The value of the rational function of total cost and total revenue when no Love Cherry Short cakes are made and sold.    Answer the following based on the problem set above.  a. write a short reflective piece (NO MORE THAN 50 words per Problem Set…
An executive receives an annual salary of P600,000 and his secretary a salary of P180,000. A certain task can be performed by the executive working alone in 4 hours. If he delegates the task to his secretary it will require him 30 minutes to explain the work and another 45 minutes to check the finished work. Due to the unfamiliarity of the secretary to the task, it takes her an additional time of 6 hours after being instructed. Considering salary costs only, determine the cost of performing the task by each method, if the secretary works 2,400 hours a year and the executive 3,000 hours a year. Solution: If the executive works alone: P800.00 If the executive delegates the work to his secretary: P737.50
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