1. The following alternatives will be compared based on an 8% interest rate.MachineFirst costAnnual MaintenanceSalvage ValueUseful LifeA5,0005006005B10,0002001,00012What is the Equivalent Uniform Annual Cost (EUAC) of machine A?A. 1550C. 1274B. 1650D. 18172. A manufacturer makes and sells certain spare parts at PHP5.00 per pc. The volume of sales per year is500,000 units. The fixed expense per year is PHP 800,000. Compute the cost per unit to break even.A. 500B. 1.60C. 7.10D. 3.403. Busilak City is considering a new PHP 5M street cleaner. The new machine will operate at a savings ofPHP 60,000 per day compared to the present equipment. Assume the MARR is 12% and the machine lifeis 10 years with zero resale value at the time. How many days per year must the machine be used tojustify the investment? MARR is the rate of return.A. 33B. 15C. 17D. 304. A fixed capital investment of P10,000,000.00 is required for a proposed manufacturing plant and anestimated working capital of P2,000,000.00. Annual depreciation is estimated to be 10% of the fixedcapital investment. Determine the rate of return on the total investment if the annual profit isP2,500,000.A. 21.36%B. 21.87%C. 20.83%D. 22.98%5. A telephone company purchased a microwave equipment for P6 Million with a salvage value ofP600,000.00 over a period of 5 years and pay lump sum of P400,000.00 for maintenance cost. Minimumattractive rate of return is 16% annually. Compute the annual cost of investment of purchasing themicrowave equipment.A. P1,592,362.54B. P1,695,452.87C. P1,803,374.41D. P1,346,121.256. A contractor can buy dump trucks for P800,000.00 each(surplus) or rent them for P1,189 per truck perday. The truck has a salvage value of P100,000 at the end of its useful life of 5 years. Annual cost ofmaintenance is P20,000.00. If money is worth 14% per annum, determine the number of days per year atruck must be used to warrant the purchase of the truck.A. 200B. 199C. 145D. 102

Machine AFirst cost=5000Annual cost=500Salvage value=600Life=5 yearsi=8%Thank you for the question.…

1. The following alternatives will be compared based on an 8% interest rate. Machine A First cost 5,000 Annual Maintenance 500 Salvage Value 600 Useful Life 5 B 10,000 200 1,000 12 What is the Equivalent Uniform Annual Cost (EUAC) of machine A? A. 1550 B. 1650 C. 1274 D. 1817

1. The following alternatives will be compared based on an 8% interest rate. Machine A First cost 5,000 Annual Maintenance 500 Salvage Value 600 Useful Life 5 B 10,000 200 1,000 12 What is the Equivalent Uniform Annual Cost (EUAC) of machine A? A. 1550 B. 1650 C. 1274 D. 1817

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

AN EXECUTIVE RECEIVES AN ANNUAL SALARY OF P600,000 AND HIS SECRETARY A SALARY OD 180,000.A CERTAIN TASK CAN BE PERFORMED BY THE EXECUTIVE WORKING ALONE IN FOUR HOURS. IF HE DLEGATES THE TASK TO HIS SECRETARY WILL REQUIRE HIM 30 MINS TO EXPLAIN THE WORK AND ANOTHER 45MINS TO CHECK THE WORK. DUE TO THE UNFAMILIARITY OF THE SECRETARY TO DO TASK, IT TAKES HER AN ADDITIONAL TIME OF 6HOURS AFTER BEING INSTRUCTED. CONSIDERING SALARY COST ONLY, DETERMINE THE COST OF PERFORMING THE TASK BY EACH METHOD, IF THE SECRETARY WORKS 2400HOURS A YEAR AND THE EXECUTIVE 3000 HOURS A YEAR. COST OF PERFORMING THE TASK: SECRETARY WORKING WITH EXECUTIVE
13.12 You work for Bellevue Window Products. While performing an analysis for a new window prod- uct, you found a report from last year that pro- vided the following information regarding the manufacture of a similar product: annual produc- tion rate T 40,000 units; selling price = $70 per unit; fixed production cost = $240,000 per year; variable production cost = $1,700,000 per year; variable selling expenses = $96,000 per year. As a first-cut, you decide to use this information to estimate (a) the breakeven production rate per year, (b) the company's profit last year, and (c) the annual production rate that would generate a profit of $1,000,000 per year. What are your estimates?
Using annual cost method, what is the total annual cost of machine A, B, C, D.
Graph on right, shows AW of costs versus number of service years of project X. Based on the graph, economic service life of the project is Larger costs Total AW of costs AW of AOC Capital recovery 3.5 10 Years О 3.5 years O 10 years O 1 year О З уears AW of costs, S/year
PUP 48,213 UST 40,000 FEU 27,889 LRT2 200,000 passengers daily If 60% of PUP, 30% of UST, and 85% of FEU students take LRT2 daily and pays an average fare of Php25 per day… What is the total annual market size (revenue) of LRT2? What is the total annual market size (revenue) of the 3 schools? If operations is halted for 1 week, what is the projected loss in revenues? What is the market share (volume) of: PUP students? UST students? Feu students?
Q1. Calculate EOQ and plot a graph with the following information. Annual Usage= 1600 units Holding Cost $8 unit/yr Ordering Cost = $100 unit/yr > Price of per Unit= $50 Number of Units 1600 800 400 200 100 80 50 Number of Order 1 2 4 8 16 20 32
What is the total annual cost of each machine using annual cost method?
Costs and revenues (in thousands) 99 15 30 45 60 75 901052013550165 80195 Quantity per period (in thousands) Tools 1 O A
Solve, a. Compare the probable part cost from Machine A and Machine B, assuming that each will make the part to the same specification. Which machine yields the lowest part cost? Assume that the MARR = 10% per year. b. If the cost of labor can be cut in half by using part-time employees, which machine should be recommended?
problem 4 5 and 6 only
Consider the following two production choices for Matson Engineering: A FC 100,000 150,000 AOC 10,000 12,000 SV 8,000 14,000 L/hr $30 $25 # of People 3 2 Output/hr 10 T years 8 If Matson's MARR is 10% what is the breakeven quantity between these two machines? Group of answer choices А. 382 В. 604 С. 411 D. 321
Pls answer asap. Thank you .. I will rate helpful