Hand written solutions are strictly prohibited 9-54 Three mutually exclusive alternatives are beingAconsidered:AInitial cost$500Benefit at end of the first 200yearUniform benefit at end ofsubsequent yearsUseful life, in years1006B$4002001255с$300200(a) Based on the payback period?(b) Based on benefit-cost ratio analysis?1004At the end of its useful life, an alternative is notreplaced. If the MARR is 10%, which alternativeshould be selected

Present value refers to a financial concept that calculates the current value of an amount of money…

9-54 Three mutually exclusive alternatives are being A considered: Initial cost Benefit at end of the first year Uniform benefit at end of subsequent years Useful life, in years A $500 200 100 6 B $400 200 с $300 200 125 100 (a) Based on the payback period? (b) Based on benefit-cost ratio analysis? 5 4 At the end of its useful life, an alternative is not replaced. If the MARR is 10%, which alternative should be selected

9-54 Three mutually exclusive alternatives are being A considered: Initial cost Benefit at end of the first year Uniform benefit at end of subsequent years Useful life, in years A $500 200 100 6 B $400 200 с $300 200 125 100 (a) Based on the payback period? (b) Based on benefit-cost ratio analysis? 5 4 At the end of its useful life, an alternative is not replaced. If the MARR is 10%, which alternative should be selected

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Hand written solutions are strictly prohibited

9-54 Three mutually exclusive alternatives are being
A
considered:
A
Initial cost
$500
Benefit at end of the first 200
year
Uniform benefit at end of
subsequent years
Useful life, in years
100
6
B
$400
200
125
5
с
$300
200
(a) Based on the payback period?
(b) Based on benefit-cost ratio analysis?
100
4
At the end of its useful life, an alternative is not
replaced. If the MARR is 10%, which alternative
should be selected

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Bags/Participants Fixed Cost Variable Cost Total Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 200 $1,700 $1,200 $2,900 300 $1,700 $2,700 $4,400 400 $1,700 $5,200 $6,900 500 $1,700 $9,000 $10,700 600 $1,700 $15,000 $16,700 700 $1,700 $23,800 $25,500 800 $1,700 $36,800 $38,500 900 $1,700 $55,800 $57,500 1,000 $1,700 $83,000 $84,700 Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order? At what quantity of bags will profits be maximized? A Use the profit maximizing rule, MR ≥ MC, buy 300 bags. B Use the profit maximizing rule, MR ≥ MC, buy 200 bags. C Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 300. D Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 200.
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You are in charge of improving utilization of resources at a restaurant that is taking only online orders for delivery to the specific addresses. There are three kind of orders received: vegetarian, non-vegetarian and gluten free. For every vegetarian order, the chopping and dicing section, the deli-cheese section, the stir fry kitchen, and marination are used. For non-vegetarian orders; the chopping and dicing section, the deli-meat section, the marination section, and the non-veg kitchen is used. In addition to this 50% of non-vegetarian dishes go through the grilling section while the other 50% go through the baking (oven) section. Gluten free dishes go through the chopping and dicing section and the stir fry kitchen only. The typical order size consists of 25 non-veg orders, 12 veg orders and 5 gluten free orders. Marination of vegetarian dishes take 5 minutes while that of non-vegetarian dishes 1 hour. Chopping and dicing for 10 vegetarian/gluten-free dishes take an hour, while…
Does providing customized products generally involve less capital investment or less skilled labor, when compared to more standardized products?