A0.235 cu. m, packed bed reactor costs $7.000 in 202. What is the estinmated cost of a 0.336 cu. m.packed bed reactor in 2007? (Cost Indiccs: 2002: 1104.2: 2007: 1543.7)

On a balance sheet of a company, a capitalised cost is an item that is applied to the cost base of a…

Answered: A 0.235 cu. m, packed bed reactor costs…

A 0.235 cu. m, packed bed reactor costs $7.000 in 2002. What is the estimated cost of a 0.336 cu. m. packed bed rcactor in 2007? (Cost Indices: 2002: 1104.2; 2007: 1543.7)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Karabuk casting factory wants to buy a furnace to meet their increasing production demands. As a result of the studies, the data in the table below were found. Based on these data, what will be future value (FV) of the scrap value of alternative B? For Alternative B; Purchase Cost= 12000 Annual Operating Expense= 1700 Scrap Value= 3000 Economic Life= 4 Capital Cost = 10% Ans: 3000
A chip manufacturer makes video gaming chip that can be sold for $50. The chip material cost is $15 for each chip. The operations costs of the chip manufacturer (administration etc.) is $100000. The chip manufacturing machinery costs $500000 that is depreciated over 10 years to a salvage value of zero. a) What is the accounting breakeven level of sales in terms of number of chips sold? b) b. What is the NPV breakeven level of sales assuming a tax rate of 35%, 10-year project life and a discount rate of 12%.
A business purchased a delivery truck 5 years ago at a cost of $45,000. It is now planning to replace that truck with a newer one, which would cost $60,000. The old truck has a trade-in value of approximately $12,500.(a1) How much of these truck costs represent sunk costs?
Q2. A special project is going to be started by Hally Corporation. Company is considering using stocks of an old raw material in a special project. The special project would require all 230 kilograms of the raw material that are in stock and that originally cost the company $900 in total. If the company were to buy new supplies of this raw material on the open market, it would cost $8.25 per kilogram. However, the company has no other use for this raw material and would sell it at the discounted price of $7.50 per kilogram if it were not used in the special project. The sale of the raw material would involve delivery to the purchaser at a total cost of $50 for all 230 kilograms. What is the relevant cost of the 230 kilograms of the raw material when deciding whether to proceed with the special project?
1. Marginal Cost-Benefit Analysis As a financial analyst for Longview Products Company, you have been asked to evaluate a proposal for new, more efficient manufacturing equipment. The existing equipment will produce benefits over the next five years of $780,000 in today's dollars. The proposed new equipment will produce benefits of $970,000 in today's dollars over the same period. The installed cost of the new equipment is $300,000; the old equipment can be sold for $130,000. Apply marginal cost-benefit analysis to determine: a. The marginal benefits of the new equipment b. The marginal costs of the new equipment c. The net benefit of the new equipment d. Based on your calculations, what do you recommend? Why? e. What factors other than the costs and benefits should be considered before the final decision is made? 2. Interest verens Dividend Exnence
Yıldız Processing Technologies Company wants to buy lathe in order to meet their increasing production needs. As a result of the studies, the data in the table below were found. Based on these data, what will be future value (FV) of the annual operating expense of alternative A? For Alternative A; Purchase Cost= 10000 Annual Operating Expense= 3000 Scrap Value= 2000 Economic Life= 4 Capital Cost = 10%
Q4/ Five years ago, an 80 MW gas power unit cost $15000. The cost index for the turbine five years ago was 180 and is now 196. The cost- capacity factor is 0.7. a. The plant engineering staff is considering a 100 MW unit of the same general design to power a small isolated plant. Assume we want to add an additional compressor, which (when isolated and estimated separately) currently costs $25000. Determine the total cost of the 100 MW unit. b. Estimate the cost of a 50 MW unit of the same general design. Include the cost of the $25000 compressor.
A manufacturing company plans to renew production machinery to save on manufacturing costs. The unit selling price is 9 TL/ton, and the contribution margin is 3 TL/ton. The monthly total fixed cost, not including depreciation, is 6.000 TL. Q5: The company expects to save on variable costs by renewing the machine. The cost of the new machine is 90.000 TL, and the economic life is five years. The expected unit variable cost is 5 TL/ton. The company computes the depreciation cost based on the Straight Line Method. The minimum expected return of the investment is 2%. a) Compute the monthly breakeven point for the new machine b) The expected annual demand for production is 35.000 tons for the following five years. Should the company invest and why?
A manufacturer of automated optical inspection devices is deciding on a project to increase the productivity of the manufacturing processes. The estimated costs for the two feasible alternatives being compared are shown below. Use the internal rate of return (IRR) method to determine which alternative should be selected if the analysis period is 8 years and the company's MARR is 4% per year. Alternative M N Initial costs $30,000 $45,000 Net annual cash flow $4,500 $7,000 Life in years 8 8 (a) IRR of base alternative = (b) IRR of incremental cash flow = (c) Choose Alternative
Your first job as an engineer is to purchase a new rotary vacuum-drum filter with a capacity of 1100 ft-. Your company purchased a similar filter eight years ago with a capacity of 700 ft- for $26,000. After checking the literature, you determine the cost index was 429 eight years ago and is 548 today. If the power-sizing exponent for this type of equipment is 0.52, estimate the cost of the new filter.
A company engaging in selling of laboratory equipment estimates that profit from sales should increase by *2,00, 000 per year if a mobile demonstration unit is built. A large unit with sleeping accommodation for the driver will cost 9, 70,000 while a smaller unit without sleeping cabin will be Rs. 6,30,000. Salvage values for the large and small units after 5 years will be, 197,000 and Rs.35000 respectively. Lodging costs saved by the larger unit should amount 1, 10,000 annually, but its transportation costs will exceed those of the smaller unit by 31, 000. With the money at 9% should a mobile demonstration unit be built? And if so which size is preferable? Use net annual worth to determine which is better and show all the steps and working
The cost to operate a clothes dryer for a year is $80.25. If the rate for electrical energy is 8.8¢/kWh, and the clothes dryer is used for 700 hours in a year, what is the power rating of the clothes dryer? Explain in depth and clearly.

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS