A consulting engineer is currently evaluating 4 projects for the US government. The annual worth values of the costs, benefits and disbenefits are shown below. Assuming the discount rate is 15% per year compounded continuously, determine which projects, if any, should be selected if they are mutually exclusive? D. 10,000 8,000 20,000 14,000 18,000 12,00030,000 24,000 AW of Disbenefits, S 6,000 3,000 9,000 7,000 A B. C AW of Costs, $ AW of Benefits, $ 2.. IL
Q: Complete the following table by computing the total profit (the chemical plant's economic profit and...
A: There are two possible actions concerning industrial waste that is dumped in the lake: Water is rec...
Q: In the Solow growth model: 1. What is the equilibrium effect of an increase in the population growth...
A: The Solow model is an economic growth model that examines the change in the output level in an econo...
Q: When marginal cost is greater than average variable cost, average variable cost i v (Click for List)...
A: Marginal cost is defined as the extra coat a firm incurs by employing an extra unit of input.
Q: You have been asked to prepare a forecast for your company's product, bottled water. Discuss the typ...
A: Forecasting is a technique for predicting the future based on data and trend analysis. Companies wil...
Q: When marginal cost equals average toal cost, average total cost, (Click for List) rising at a minimu...
A: Marginal cost is change in total cost divided by change in output. Average cost is the cost per unit...
Q: 1. Circle the data sets that reflects the Law of Supply. Explain why it reflects the Law of Supply. ...
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for yo...
Q: In relation to bargaining power with Buyers. Explain each point: -They purchase a substantial p...
A: There are many factors that are related to the bargaining capability of the buyers. Many factors are...
Q: How would the price equation apply to the pur-chase price of (a) gasoline, (b) an airline ticket, an...
A: Price equation tells how the frequency of a trait changes over a period of time. It calculates the d...
Q: 1. Explain the importance of Sovereignty in a State. 2. Discuss the necessity of the Government in a...
A: 1) Sovereignty is a state trait that is both a concept and a reality in terms of state authority.It ...
Q: Cosmopolitan democracy is one of the ideas propounded in the wake of globalization. What does it mea...
A: The process through which the world becomes interconnected due to a massive increase in cultural exc...
Q: In the following mixed-strategy, static, zero-sum game, calculate the optimal value for x (proportio...
A: The matrix can be written as
Q: The international terror campaign being waged by Al Qaeda has an underlying economic motive. T or F?
A: Terrorism is defined as the use of violence and fear to achieve an ideological goal in its broadest ...
Q: Quantity of Labor (workers) Total Product (units per hour) 0 123 4 5 6 0 259 151817 The table above ...
A: Change in total product per unit change in the quantity of labor employed is the marginal product of...
Q: Mention an example of each point. Number of buyers vs. suppliers: If the number of buyers is small ...
A: The number of buyers and sellers determines the structure of the market.
Q: 5. Consider the accompanying breakeven graph for an investment, answer the following questions. a) G...
A: Since you have provided multiple subpart question, we will solve the first three subpart for you. If...
Q: Please answer with details on how to do it. A small company manufactures a certain product. Variabl...
A:
Q: 1. The Nash bargaining solution between the employer and the worker satisfies the fol- lowing maximi...
A: A technique in which two people agree on how to split a surplus they can earn together is known as c...
Q: Mr. Gonzales wants to know the ending balance after 3 years based on monthly deposits of $500 in his...
A:
Q: At last time you have answered my question ,but I still have some problems want to ask you and there...
A: To understand the concepts of the Indifference Curve and Budget Line, let us first understand the me...
Q: A company launched a sales campaign and appointed 110 salesmen for this purpose. At the end of the p...
A:
Q: The __________ industrial sector contains large, profitable firms with dominant positions within maj...
A: Meaning of Market: The term market refers to the situation under which the producers or the seller...
Q: The demand curve for original Iguanawoman comics is given by (464 - p)? (0 sp s 464), where a is the...
A:
Q: In relation to bargaining power with buyers. Applying it to Tesla, how would you explain the bargai...
A: Bargaining power allows consumers to pressurize the firms to lower the prices of the products. Barga...
Q: Several theories try to account for the existence of the informal sector: a legalistic/libertarian a...
A: The segment of any economy that is neither taxed nor monitored by any kind of government is known as...
Q: Explain Lorenz curve in short witha diagram
A: A Lorenz curve is a graphical depiction of income or wealth disparity created by American economist ...
Q: Explain the Oaxaca Blinder decomposition.
A: The Kitagawa–Blinder–Oaxaca decomposition is a statistical method for explaining differences in the ...
Q: AD or AS a. A decrease in the personal income tax rate b. An increase in Government Spending c. Decr...
A: Hi! thanks for the question but as per the guidelines, we answer only one question up to three subpa...
Q: Using appropriate graphs and mathematical expression, briefly discuss one macroeconomic view of hea...
A: Health spending refers to all expenditure for health services, family planning activities, nutrition...
Q: Write the expression for consumption per capita in the steady-state equilibrium, as a function of ca...
A: 1. Solow creates a long-run economic growth mathematical model. He assumes that both capital and lab...
Q: Suppose aggregate labour supply is measured as aggregate number of hours worked (L) given wage (w). ...
A:
Q: Which of the following is correct about marginal and average products? A) When the average product i...
A: Marginal product refers to addition in total output and when more unit of variable input is used in ...
Q: Explain the Marshalls rule of derived demand.
A: Demand for a factor of production or intermediate good that arises as a result of demand for another...
Q: IT Quantity of labor (workers) Total product (hair stylings per day) 1 10 2 25 3 45 4 60 70 The abov...
A: Total product shows relationship between total output produced and number of workers hired
Q: Lara deposited 1000 in her bank account at the beginning of every quarter for 9.5 years. Interest pr...
A: Compounded quarterly "it is the interest amount earned quarterly on an account or investment where t...
Q: Determine the average cost function.
A: Cost is a function of the quantity produced. It measured the total cost of producing a given level o...
Q: Explain this two causes of unemployment
A: The two causes of unemployment are as follows:
Q: Consider again the two schemes. Which scheme will the farmers prefer? Consider again the two schemes...
A: A price floor is a minimum price set on goods and services usually determined by the government.
Q: (I) Compute the marginal rates of substitution of each firm at the Nash equilibrium. Is the Nash equ...
A: In a strategic game of wins and losses, comprising two players whose only objective is to maximise t...
Q: Hello can any one help with this Economics question:
A:
Q: How is interest rate calculated when using intertemporal consumption between two periods. Can a fo...
A: Inter-temporal consumption is related to the consumption in two periods. We assume that a person con...
Q: A country's Cobb-Douglas production function is as follows: Y= 5K^(1/2)L^(1/2). If this country has ...
A:
Q: Refute this statement The future is big tech and that should be our focus, not small, unproven, bus...
A: Small scale industries refer to those industries in which production and manufacturing activities ar...
Q: Total product (meals per hour) 24 20 TP 16 12 4 2 3 5 Quantity of labor (workers) The figure shows t...
A: Total product shows the relationship between output produced and number of input hired.
Q: A manager accepts the work submitted by his typist only when there is no mistake in the work. The ty...
A:
Q: A mechanical contractor is trying to calculate the present worth of personnel salaries over the next...
A: Future cash flows or sums of money have a present value (PV) if a specific return rate is applied. T...
Q: 1. What is the opportunity cost of Bananas in terms of Tacos? 2. What if the price of Tacos decrease...
A: 1. The opportunity cost of Bananas in terms of Tacos = Total Tacos / Bananas = 5 / 10 = 0.5 Thus opp...
Q: Inflation in Macroland is 5% this year and it is expected to remain at this rate for a foreseeable f...
A:
Q: he renewal cost? he capitalized cost? al places, rounded off), if whole number no need to add .00
A: Capitalised cost can be computed by taking present worth of cash outlfow, adding present worth of re...
Q: How do the economic sectors differ?
A: Economic sectors refers to various different sectors of the economy each dealing with different type...
Q: The Nash bargaining solution between the employer and the worker satisfies the fol- lowing maximizat...
A:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The following estimates (in $1000 units) have been developed for a security system upgrade at Fairbanks International Airport, FAI. Item Cash Flow First cost, $ 13,000 AW of benefits, $ per year 3,800 FW of disbenefits, year 20, $ 6,750 M&O costs, $ per year 400 Life, years 20 Please calculate your dollar values to the nearest whole dollar. Format 0000 No commas. Please calculate your B/C ratios to 2 decimal places. Format 0.00 Treat any disbenefits as negative benefits and not additional costs. a. Calculate the modified B/C ratio (use AW) at a discount rate of 10% APR, compounded daily. b. Is the project justified? O A. No, the B/C ratio is > 1 O B. Yes, the B/C ratio > 1 Please calculate your dollar values to the nearest whole dollar. Format 0000 No commas. c. Determine the minimum/maximum first cost, FC, that is possible to render the project economically unjustified/justified. $It refers to the number of years that the original capital investment for the project will take to be paid by its annual earnings O A. Profitability Index O B. Payback Period O C. Rate of Return O D. MARRDevelop a plot of the average cost per unit versusproduction quantity for the houseware applianceassembly department of Ace-One, Inc., that has afixed cost of $160,000 per year and a variable costof $4.00 per unit; use it to answer the followingquestions.(a) At what quantity is a $5 per unit average costjustified?(b) If the fixed cost increases to $200,000, plot thenew curve on the same graph and estimate thequantitythat justifies an average cost of $6 per unit.
- The five mutually exclusive alternatives shown below are under consideration for improving visitor safety and access to additional areas of a national park. If all alternatives are considered to last indefinitely, determine which should be selected on the basis of a rate of return analysis using an interest rate of 10%. A B C D E_ First cost, $ millions -20 -40 -35 -90 -70 Annual M&O cost, $ millions -2 -1.5 -1.9 -1.1 -1.3 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.List the fundamental Principles in Engineering Economics?List the five main types of engineering economic decisions?
- For each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear manual solutions to the problem; (c) highlight the final answer (only the final answer as required by the problem) by enclosing it within a box. Company D recently purchased an equipment that costs $40,000, has a life of 4 years and a salvage value of $5,000. The production output of this equipment is 1800 on the first year, 2200 on the second year, 3000 units on the third year, and 4000 units on the fourth year. What is the annual depreciation charge on the third year?1. A pharmaceutical company that manufactures ascorbic acid tablets is investigating two production options that have the estimated cash flows shown ($10 million units). Which one should be selected based on a present worth analysis (in million units) at 10% per year? In- outsourced house Initial Investment -30 Annual cost, $ per year 24 -5 -2 Annual Revenue, $ per 13 year 2 N/A Salvage Value, $ LifeNational homebuilders Inc plans to purchase new rain gutter forming equipment. Two manufacturers offered the following estimates, First Cost, $ Annual Operating Cost, $/year Salvage Value, $ Life, years Vendor A 15,000 3500 1000 6 Vendor B 18,000 3100 2000 9 a. Determine which vendor should be selected on the basis of a PW comparison, if the MARR is 15% per year. b. National Homebuilders has a standard practice of evaluating all options over a 5-year period. If a study period of 5 years is used and the salvage values are not expected to change, which vendor should be selected?
- You wish to evaluate four independent projects that all have a 10-year life at MARR = 15% per year. Preliminary estimates for first cost, annual net income, and SV have been made. A B C D First cost, $ −1,200 −2,000 −5,000 −7,000 Annual net income, $/year 200 400 1100 1300 Salvage value, $ 5 6 8 7 (a) Accept or reject each project using a present worth analysis. On your spreadsheet, include the logical IF function to make the accept/ reject decision. (b) The preliminary estimates have changed for projects A and B as shown below. Use the same spreadsheet to reevaluate them. A B First cost, $ −1,000 −2,200 Annual net income, $/year 300 440 Salvage value, $ 8 0SITUATION3: Under the data collected from the office of Department of Transportation and DPWH over the last 5 years indicate that for each fatality, there are 40 non-fatal injury accidents ($1500 present cost each) and 300 property damage accidents ($2000 present cost each). What is the breakeven value of statistical Me (VSL) needed to justify a highway project if i is 8%? The death rate on a particular three-lane road is 8 per 100 million vehicle-miles. Adding a lane would reduce this to 5 per million, and other accidents would cost $1.5M per mile to build, and annual maintenance would be 3% of the first cost. Assume that the lane would last 40 years. The road carries 10000 vehicle per day. Use reduction factor of 3/8 for all accidents. (Non-CE students no need to answer this item).Which among these pairs would provide a good market feasibility judgment on a given project?a. Benefit-Cost Ratio method and breakeven pointb. External Rate of Return method and Internal Rate of Return methodc. Benefit-Cost Ratio method and payback periodd. Minimum Attractive Rate of Return and Present Worth method