3. A company is considering to purchase a new equipment. The equipment, which will cost $13,500, will result in annual savings of $2300 with a savage value at the end of 10 years of $450. For a MARR of 7%, use B/C analysis to determine whether the equipment should be purchased.
Q: 1 Which one of the following is not a supply factor in economic growth? a) Consumption spending b)…
A: Consumption functions includes autonomous consumption and the consumption dependent on income of…
Q: Suppose that a farmer has the following quantity supply for palay, mongo and kamote: Price Quantity…
A: Price elasticity of supply is the ratio of the percentage change in quantity supplied of a product…
Q: 10. Recently, some college alumni started a moving service for students living on campus. They have…
A: Production refers to the process of producing goods and services using inputs such as capital and…
Q: The demand and supply functions of a computer accessory are D(x) = 4.5 - 2.5x and S(x) = 0.0375…
A: The equilibrium price and quantity are decided where the demand and supply are equal. The change in…
Q: Anne's utility function is U(x, y) = 2(x+y) - min{x, y}. Given the income M, please derive the…
A:
Q: Perfect Competition is a model/representation of market that allows economists to understand certain…
A: Perfect Competition refers to the market structure where the large number of buyers and sellers…
Q: Unless the price of a 350GB portable hard drive is more than Php2,000, none is available in the…
A: supply is the quantity a seller is willing to sell at certain time and place. There is positive…
Q: If the supply function is given by the equation 2x - 6y + 900 = 0, determine the lowest price at…
A: supply is the quantity that a producer shows willingness to sell at particular time and place.
Q: Extra The problem of principle agent can be reduced if it is possible to pay the worker a) weekly…
A: Disclaimer: - Since you asked multipart question, we are solving only first 3 as per guidelines. if…
Q: 7. Explain Logistic equations and why it is related to the Malthusian Model.
A: The Logistic Curve Theory was first introduced in 1835. Accordingly, the population growth rate…
Q: what would be the average price paid by demander B?
A: In this case, inverse demand functions are taken. Inverse demand function means that the demand…
Q: The coffee and tea demand functions depend on both prices. Suppose the demand curves for coffee and…
A: A market is in equilibrium where the quantity demanded is equal to the quantity supplied. Hence, we…
Q: Question 12 The quantity of real GDP supplied at full employment is called (A) short-run equilibrium…
A: Employment is a type of economic activity in which one individual is appointed by another to do a…
Q: 1.1. The following mathematical equations reflect the performance of the economy and inventory…
A: The Keynesian model of national income is the sum of the consumption function, investment function,…
Q: Anita bought a new scooter for $500. She is deciding whether she should insure her scooter against…
A: Price of the new scooter=$500 1 out of the 10 scooters is stolen So the probability of…
Q: Refer to Table 1. The equilibrium level of output is ________ billion. Group of answer choices…
A: Equilibrium is where aggregate demand equals output That is AE = Y Now , Aggregate demand/…
Q: Classify the good as either: (1) private good, (2) club good, (3) common resource, (4) pure public…
A: Goods are said to rival when the usage of a good by one party doesn't affect the consumption of the…
Q: Let the IS equation be A 1-b where 1 -b is the marginal propensity to save, g is the investment…
A: IS curve is the goods market equilibrium and the LM curve is the money market equilibrium. For IS…
Q: Question 6 P3 MC ATC P3 Xu f P2 P1 Quantity P2 Price P1 Price Q2 Q3 QW QXQX QZ more firms in the…
A: The given graph is of perfect competitive market. In the long run there is no fixed cost cost so…
Q: Price adjust until quantity demanded equals quantity supplied.
A: Competitive market- It refers to to a market where many buyers and sellers meet and they have…
Q: a. With the aid of appropriate diagrams, evaluate and illustrate the conditions required for…
A: A strategy plan called utility maximization aims to make people's and businesses' economic choices…
Q: QUESTION 15 Which of the following professions would we expect to have the highest economic profit?…
A: Answer to the question is as follows:
Q: A (single-price) monopolist is maximizing profits when A. the marginal revenue associated with the…
A: Monopoly is the term used to describe a market system in which there is only one seller on the…
Q: My sister graduated high school, she decided to go to university. The opportunity cost of going to…
A: Opportunity Cost is the cost of the next best alternative that is sacrificed in order to select some…
Q: The economy of Bananaland can be characterized by Equation 9.3. EQUATION 9.3:…
A: Aggregate demand includes consumption spending, investment spending and Government spending. So, AD…
Q: ohn Kenneth Galbraith saw modern capitalism as A.dominated by large enterprises and…
A: Macroeconomics refers to the branch of economics that deals with the economy as a whole. For…
Q: the equipment cost 500000 and has a salvage value of 25000 after its 20 years of useful life. using…
A: The double Declining Balance Method is one of the accelerated methods used for the calculation of…
Q: An organization serves 1,000 customers. Its average and marginal cost is $300 per unit and the price…
A: In the given question, initially the customers were 1000, which later been increase to 1200, since…
Q: 17. Which of the following two factors helped growth in FDI in developing countries a.…
A: Foreign direct investment (FDI) is a part of capital investment in foreign nations. Any country,…
Q: Pepper Roark deposits $3,000 in a savings account. The money is left on deposit earning 3.75%…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: In a town behind the local mountains, 3 individuals each buy flowers following their individual…
A: Aggregate demand is the sum of all individual demand. Aggregate demand shows the total quantity…
Q: How will each of the following scenarios impact the market for money The central bank conducts an…
A: Money market equilibrium is where the money demand curve intersects the money supply curve.…
Q: For this question, assume that indifference curves are strictly convex, consumption and leisure are…
A: Worker has to decide between the work and leisure. A rise in wage affects such selection of worker.…
Q: a. Specify the first order condition for the firm's profit maximization problem. b. Suppose there is…
A: Firms in a perfectly competitive market are price takers. And, all firms sell homogeneous goods.…
Q: Considering your analysis, can you state with certainty that Q2 is greater than, same as, or less…
A: The relationship between the quantity of a good or service that producers want to sell at different…
Q: Refer to Table 1. At the equilibrium level of income, leakages equal ________ billion. Group…
A: At equilibrium, the leakages equal injections. When the planned injections exceed leakages, there…
Q: b. How is a long-run average cost curve different from a short-run average cost curve? How are they…
A: The LRAC curve represents/depicts the AC(average cost) per unit of output(Q). It is also the…
Q: What is the APY for 5.5% compounded semiannually?
A: Given Nominal rate =5.5 compounded semiannually Required: APY (annual percentage yield) Formula:…
Q: 8. A manufacturer can sell a certain health supplement for Php1,100 per unit. Its total cost…
A: Break even is where total profit is zero. Total profit is zero where the total revenue and total…
Q: 2. (T/F) One way to reduce opportunism is to obtain inputs through spot exchange. 3. (T/F) In a…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: In an economy, potential GDP is $20 trillion and the natural unemployment rate is 4 percent. If the…
A: Okun's Law states that every 1 percentage decrease in unemployment rate increases the real GDP by…
Q: Consider the market for fire extinguishers. d. If the external benefit is $10 per extinguisher,…
A: When a transaction involving a When a transaction involving a buyer and a seller has an effect on a…
Q: e. Suppose that the Argentine government places a tax on the exports of beef to keep domestic food…
A: Taxation is the process through which a government or other taxing body imposes or levies a tax on…
Q: A manufacturer producer certain items at a labor cost per unit of P 125, material cost per unit is…
A: Break Even Point is the moment at which total cost and total income are equal, or "even," is this…
Q: Consider the investment projects listed in the table below, all of which have a four year investment…
A: The payback period refers to the time needed to earn back the invested amount in an asset from its…
Q: International economics is theory that helps explain how the real world works. Is this statement…
A: The transfer of commodities, services, money, and technological advancements between nations is…
Q: 13) If the demand for a good is given by: QP = 52-2Pt Q = 3Pt-1-13 Where Q is quantity andP is the…
A: Difference equations are used for explaining relationships between different variables that are…
Q: Determine the rate of return for the following cash flow using trail & error approach with linear…
A: * SOLUTION :- Given that , Year. Revenue. Expenses 0 $0.00…
Step by step
Solved in 3 steps
- You are charged with choosing a vendor to produce a new software that is going to benefit your company. The project has a life cycle of 8 years and MARR of 8% annual interest. Part a.) Draw the cash flow diagram for each vendor. Part b.) Calculate a PW cost for each vendor. Part c.) Indicate which vendor you would choose. Task Development Programming Operation Support Vendor M Cost, $ 200,000 150,000 42,000 20,000 40,000 30,000 Time Frame Now Years 1-4 Now Years 1-3 Years 1-8 Years 1-8 Vendor N Cost, $ Time Frame 70,000 60,000 45,000 50,000 35,000 Now Now Years 1-5 Years 1-8 Years 1-8 Vendor O Cost, $ 150,000 Time Frame Years 1-8Note: This is a Engineering Economic Question 3. Student C invested in Axie Infinity and Mydefi Pet P100,000, now and another P100,000 at the end of the year 1. Revenues of P150,000 will be generated at the end of year 1 and 2. What is the next present value of this NFT games if the effective annual interest rate is 10% ?E2 A steel bridge on Louisiana state highway near the Gulf of Mexico is costing $450.000 yearlyin maintenance large chipping, priming, and painting. It originaly cost $1.600.000 when it wasbuilt 15 years ago. The Louisiana bridge engineers estimate that its remaining life is 10 years,then it will need to be replaced because of increased traffic. Its salvage value at any point intime is zero, because the cost of demolition will most like equal its value as scrap steel.A concrete bridge is considered to be the best challenger. It will cost $3.000.000 to build and$100.000 annually in maintenance costs. Its estimated life is 50 years. Its resale value may becounted as zero at any time during its life.No taxes of any kind will be considered for this government project. All costs are in constantdollars of year 0. Inflation may be ignored. Assume that annual benefits for either structure areexactly the same. A discount rate of 10 percent is to be used in analysis.(a) What is the economic life…
- The management of Brawn Engineering is considering three alternatives to satisfy an OSHA requirement for safety gates in the machine shop. Each gate will completely satisfy the requirement, so no combinations need to be considered. The first costs, operating costs, and salvage values over a 5-year planning horizon are shown below. End of Year Gate 1 Gate 2 Gate 3 0 -$15,000 -$19,000 -$24,000 1 -$6,500 -$5,600 -$4,000 2 -$6,500 -$5,600 -$4,000 3 -$6,500 -$5,600 -$4,000 4 -$6,500 -$5,600 -$4,000 5 -$6,500 + $0 -$5,600 + $2,000 -$4,000 + $5,000 Show the comparisons and internal rates of return used to make your decision:Comparison 1: (Gate 1 versus Gate 3 or Gate 2 versus Gate 3 or Gate 2 versus Gate 1?) IRR 1: %Comparison 2: (Gate 1 versus Gate 2 or Gate 2 versus Gate 3 or Gate 3 versus Gate 1?) IRR 2: Using an internal rate of return…The management of Brawn Engineering is considering three alternatives to satisfy an OSHA requirement for safety gates in the machine shop. Each gate will completely satisfy the requirement, so no combinations need to be considered. The first costs, operating costs, and salvage values over a 5-year planning horizon are shown below. End of Year Gate 1 Gate 2 Gate 3 0 -$15,000 -$19,000 -$24,000 1 -$6,500 -$5,600 -$4,000 2 -$6,500 -$5,600 -$4,000 3 -$6,500 -$5,600 -$4,000 4 -$6,500 -$5,600 -$4,000 5 -$6,500 + $0 -$5,600 + $2,000 -$4,000 + $5,000 What is the future worth of each alternative?Which process line should be built for a new chemical? The expected market for the chemical is 20 years. A 6% rate is used to evaluate new process facilities, which are compared with present worth. How much does the better choice save? Option Salvage Life 1 2 First Cost $15 M $20 M O&M Cost/Year $5 M $3 M $4 M $6 M 10 years 20 years
- The following annual costs are associated with three new extruder machines being considered for use in a Styrofoam cup plant: Data Useful Life, Years First Cost Salvage Value Annual Benefit M&O M&O Gradient X 17 $2,500,000 $105,000 $199,000 $65,000 $16,000 X-TRUD 13 $2,620,000 $109,000 $614,000 $80,000 $14,500 O Choosing SUPR-X is best because it has the highest Annual Benefit Choosing SUPR-X is best because it has the lowest M&O cost in yr1 SUPR-X 7 $2,020,000 $117,000 $671,000 $56,000 $11,000 The company's interest rate (MARR) is 4%. Which extruder should the Styrofoam company choose? Use Annual Cash Flow Analysis and provide the right reason. O Choosing SUPR-X will maximize the EUAB-EAUC; its value is $442,101 higher than X and $62,879 higher than X-TRUD. O Choosing SUPR-X will maximize the EUAB-EAUC; its value is $-38,899 higher than X and $-18,121 higher than X-TRUD.A start up business is considering two types of equipment - data are as follows: TYPE A TYPE B First Cost Annual operating cost Annual labor cost P200,000.00 32,000.00 50,000.00 P300,000.00 24,000.00 32,000.00 Insurance and property taxes 3% Payroll taxes 4% Estimated life 10 The minimum required rate of return is 15%. 3% 4% 10 Using present worth cost method, determine the value of alternative A and alternative B:5- Year SV O&M 15,000 1000 12,000 1500 9,000 The table above lists salve value (SV) and operating and maintenance (O&M) cost of an asset through 3 years with the initial cost of $20,000. Given MARR is 10%, which of the statements 3 2000 is correct (choose the closest answer)? a) The marginal cost at year 2 is $6,000 and the annual cost (EUAC) through year two is $6,500 b) The marginal cost at year 2 is $6,000 and the annual cost (EUAC) through year two is $7,048 c) The marginal cost at year 2 is $6,500 and the annual cost (EUAC) through year two is $7,048 d) The marginal cost at year 2 is $6,500 and the annual cost (EUAC) through year two is $6,000
- D-80 The interest rate that makes Alternatives A and B equivalent is in what range?PART 2 - C PROBLEM SOLVING PROBLEM NO.1 Compute the PW: $3500 market value productivity attributable to equipment per year (Operating costs have already been deducted fron the revenue) $8500 $8500 $8500 $8500 $8500 1 2 3 End of Year i= 18%/yr $23500 investment cost 5.3. PEMEX, Mexico's petroleum corporation, has an estimated budget for oil and gas exploration that includes equipment for three offshore platforms as shown. Use the PW to select the best alternative at a MARR of 14% per year. Platform X Y Ꮓ Initial Cost, $ million 300 450 510 M&O, $ million per year 320 290 230 Salvage Value, $ million 75 50 90 Estimated Life, years 20 20 20