A net present worth equation is used to solve for a ROR by setting the net present worth equation Equal to: Select one: a. zero b. 1 С. -1 d. -10
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- The consultancy Imagination Inc. is working with its manufacturing client Parts-R-Us to improve their on-time performance. The firm can earn a bonus of up to $1,000,000 based on how much the on-time performance actually improves. It's current (baseline) on-time performance is 90%. The company typically completes approximately 1,000 orders per month, with approximately 100 orders delayed. The bonus payment is prorated according to the following criteria: · The on-time performance improvement is calculated based on a reduction in late events or an improvement in on-time performance. · No bonus is earned for the first 25% reduction in late events, say from 100 to 75. Maximum bonus is earned once Parts-R-Us achieves 95% on-time performance. Please answer the following: Write down a formula to determine the total bonus amount to be received Using your formula, show how much bonus would be paid if Parts-R-Us achieves 94% on-time performance.Plsss answer allhelp please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
- Assume a pool of 115 people in an insurance pool (a group of people insured through community rating). It is estimated that a small number in the pool will have significant pre- existing conditions as indicated in the table. Based on the age of these 115 people, the insurance company estimates the following distribution of health care claims (which includes necessary profit and administrative costs of the insurance company). Number of Insured Antidipated Heath Costs/Year/Person $1,400 $1,500 $1,600 $1,700 $1,800 $1,900 $2,000 $2,100 $2,200 $2.300 $2,400 $2,500 $2,700 $2,000 $2,900 $3,000 $3,100 $3.200 $3.300 $4,000 57,00 $10,000 Everyone joins the poal ad pays the necessary premum in the first year. The clams experience of the customers is faund to be generaly consstent with expeclations of the insurance company. A) What would be the premium In the third year if there is no inflation, based on the company's oxperience from the past year? B) If those customers who have anticipated…Rent reviews are conducted to ensure that the net income adds value to the commercial real estate investment. True / False1. Choose True or False for each of the following statements: a) Sensitivity analysis is concerned with determining how much variation infinancial data, the decision maker can have to affect the economic decision. b) Useful life is a period of time that yields the minimum equivalent uniformannual cost of owning and operating as asset. c) Depreciation is a reduction in value of an asset, which reflects its actualusage during ownership. d) In an optimistic estimation of MARR, we expect to see a lower MARR thanthat of pessimistic. e) If one of extreme FW values, i.e., optimistic and pessimistic scenarios, ofan alternative is positive and another one is negative, a go-decision ismade without further analysis. f) Recovery period refers to the depreciable life of an asset. g) Spider plot is used to show the amount of changes on the value of morethan one factor at a time. h) The book value at the end of useful life might not be equal to the salvagevalue when declining balance with switchover…
- An engineering alternative has a first cost of $12700, and is expected to have net annuai receipts of $1650 for the next 8 years. Assuming no salvage value at the end of the alternative's life, the amount of AW(0%) is: 1. c$500.00 2. C-$500.00 3. C-$62.50 4. C $62.50 5. C NONE.A manufacturing company is evaluating an investment plan to produce a new product based on the following estimated data: • Equipment Cost: $150,000 • Overhead Cost: $30,000/year • Sales price: $12/unit Operation cost: $20/operating hour • Production time: O.1 hour/unit • Planning horizon: 4 years • MARR: 15% Salvage value after 4 years: 0 By using break-even analysis, the break-even sales value for the product should be: Select one: a. 6755 units X b. 8255 units C. 9755 units d. 11,255 units The correct answer is: 8255 unitsThe project is to construct a lateral canal that will provide irrigation for 150 ha production area along the ricefields of a town| and it is being considered by the municipality. The locality has two (wet and dry) croppings. A one (1) ha ricefarm yields 90 çavans for rainfed areas. The following costs have been identified. Land: 800 meters long x 6 meters parcel of land at Php 950.00 per ha 4,500,000.00 500,000.00 250,000.00 Construction: Annual O&M (government): Annual O&M (farmer irrigators): Rental receipts from irrigators: 17 çav/ha Convenience to farmers: 500,000.00 Yield increase: 22% Neglecting other factors associated with production yield increase, determine the B/C ratio of the project with a MARR of 10% per year if the project is to be used for 25 years. Is the project acceptable?
- What is the 5-year Benefit-Cost-Ratio (BCR) at 10% interest rate for an equipment project with the immediate installation cost of -$2500 (in year 0) and a maintenance cost of -$1500 in year 3, and annual benefit of $1000 from the first year onward (n=1 to 5)? Select one: OA. 1.095 OB. 1.145 OC. 1.140 OD 1.045 OE. 1.175If the demand and supply of a certain type of yam at Agbogbloshie market in Accra is given as: (b) Q¢ = 100 - 0.1P: %3D Qf = 50 + 0.2P-1 respectively and the initial price, P, = 200 Ghana cedis. %3D (i) Find the market price P, at any time period, r. (ii) What is the equilibrium price (P.) of yam? (iii) Is the time path of price stable?3. APC + APS should always be equal to 1 a) False b) Depends on their values c) None of these d) True