A chemical engineer is considering two styles of pipes for moving distillate from a refinery to the tank farm. A small pipelinewill cost less to purchase (inclucding valves and other appurtenances) but will have a high head loss and, therefore, a higherpumping cost. The small pipeline will cost $17 million installed and will have an operating cost of $12,000 per month. Alarger-diameter pipeline will cost $21 million installed, but its operating cost will be only $8000 per month. Assume thesalvage value is 10% of the first cost for each pipeline at the end of the 10-year study period. Determine the equivalentannual worth of the small pipieline at a MARR of 12% per year compounded monthly. (Answer should be per month)

Equivalent monthly cost is total cost of machine and monthly operating cost that is required for…

A chemical engineer is considering two styles of pipes for moving distillate from a refinery to the tank farm A small pipeline will cost less to purchase including valves and other appurtenances) but will have a high head loss and, therefore, a highen pumping cost The small pipeline will cost $17 million installed and will have an operating cost of $12,000 per month larger-diameter pipeline will cost $2 million installed, but its operating cost will be only $8000 per month. Assume the salvage value is 10% of the first cost for each pipeline at the end of the 10-year study period. Determine the equivalent annual worth of the small pipieline at a MARR of 12% per year compounded monthly. Answer should be per month)

A chemical engineer is considering two styles of pipes for moving distillate from a refinery to the tank farm A small pipeline will cost less to purchase including valves and other appurtenances) but will have a high head loss and, therefore, a highen pumping cost The small pipeline will cost $17 million installed and will have an operating cost of $12,000 per month larger-diameter pipeline will cost $2 million installed, but its operating cost will be only $8000 per month. Assume the salvage value is 10% of the first cost for each pipeline at the end of the 10-year study period. Determine the equivalent annual worth of the small pipieline at a MARR of 12% per year compounded monthly. Answer should be per month)

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

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please asnwer correctly: Your company has been approached to bid on a contract to sell 5,000 voice recognition (VR) computer keyboards per year for four years. Due to technological improvements, beyond that time they will be outdated and no sales will be possible. The equipment necessary for the production will cost $3.4 million and will be depreciated on a straight-line basis to a zero salvage value. Production will require an investment in net working capital of $395,000 to be returned at the end of the project, and the equipment can be sold for $325,000 at the end of production. Fixed costs are $595,000 per year, and variable costs are $85 per unit. In addition to the contract, you feel your company can sell 12,300, 14,600, 19,200, and 11,600 additional units to companies in other countries over the next four years, respectively, at a price of $180. This price is fixed. The tax rate is 23 percent, and the required return is 10 percent. Additionally, the president of the company…
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Please help me with this question :) A detailed answer will be much appreciated.
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Garrett Boone, Grouper Enterprises’ vice president of operations, needs to replace an automatic lathe on the production line. The model he is considering has a sales price of $255,530 and will last for 7 years. It will have no salvage value at the end of its useful life. Garrett estimates the new lathe will reduce raw materials scrap by $38,900 per year. He also believes the lathe will reduce energy costs by $26,750 per year. If he purchases the new lathe, he will be able to sell the old lathe for $5,305.Click here to view the factor table.(a) Calculate the lathe’s internal rate of return. Internal rate of return $ % (b) If Grouper Enterprises uses a 13% hurdle rate, should Garrett purchase the lathe? YesNo Click if you would like to Show Work for this question: Open Show Work
Billingham Packaging is considering expanding its production capacity by purchasing a new machine, the XC-750. The cost of the XC-750 is $2.81 million. Unfortunately, installing this machine will take several months and will partially disrupt production. The firm has just completed a $45,000 feasibility study to analyze the decision to buy the XC-750, resulting in the following estimates: •Marketing: Once the XC-750 is operational next year, the extra capacity is expected to generate $10.05 million per year in additional sales, which will continue for the 10-year life of the machine. • Operations: The disruption caused by the installation will decrease sales by $5.02 million this year. As with Billingham's existing products, the cost of goods for the products produced by the XC-750 is expected to be 73% of their sale price. The increased production will also require increased inventory on hand of $1.07 million during the life of the project, including year 0. •Human Resources: The…
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