A new bottling machine will cost $25,000 initially. The machine will produce after-tax cash flows of $4,000 in the first year and $8,000 each year thereafter for 4 years. Your company's cost of capital is 7%. What is the payback period for this project?

A new bottling machine will cost $25,000 initially. The machine will produce after-tax cash flows of $4,000 in the first year and $8,000 each year thereafter for 4 years. Your company's cost of capital is 7%. What is the payback period for this project?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Suppose the money market for some hypothetical economy is given by the following graph, which plots…

A: The equilibrium interest rate and money is determined by the intersection of MSNMD curves. The price…

Q: Question 8 A beekeeper decides to locate her business on a plot of land that is between an apple…

A: Ans. The negative externality is: B. The possibility of the bees stinging the students at the…

Q: Suppose the inverse demand function for a depletable resource is linear, P = 25 – 0.4q, and the…

A: i. To allocate 40 units between two periods in a dynamic efficient allocation, we need to find the…

Q: Explain and illustrate the concept of convergence. Discuss the differences between the concepts of…

A: Examples: Examples for both convergence and conditional convergence: Convergence Example: Sequence…

Q: am. 133.

A: To find the optimal price for a dozen of Yogi's donuts, we can use the concept of marginal analysis.…

Q: Back Question 10 Not yet answered Marked out of At the profit-maximizing output level y", where…

A: To determine if the statement is true or false, we need to find the profit-maximizing output level (…

Q: Back to Assignment Attempts 1 Keep the Highest 1/4 11. Costs in the short run versus in the long run…

A: 1. Since Ike is only operating on one factory, look at the row corresponding to one factory and the…

Q: Retail chain Kroger has more than 2700 locations and is the largest supermarket in the United States…

A: step: 1(a) The correct scatter diagram is Graph(A) as mentioned in the question (b)There appears to…

Q: 4. Is monopolistic competition efficient? Suppose that a company operates in the monopolistically…

A: Step 1:Let us understand the terms used in the graph to answer the questions efficiently…

Q: Calculate the total revenue if the firm produces 16 versus 15 units. Then, calculate the marginal…

A: Explaining the calculation of total revenue, marginal revenue, and plotting the marginal revenue…

Q: Inflation Rate (П) 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 0 1,000 15.0% 14.0% LRAS…

A: Summary:Short-run impact: Inflation falls to around 5%, cyclical unemployment rises to around…

Q: 冬 2023.tle.courses.open.uwi.edu fn Assessment #2 X THE UNIVERSITY OF THE WEST INDIES GLOBAL CAMPUS…

A: 1. Finding the Equilibrium Quantity:The equilibrium in a market occurs where the quantity demanded…

Q: The following table lists the marginal cost and marginal private benefit of the electric car market:…

A: Given,Marginal External Benefit: MEB=$10,000This external benefit will be added to the Marginal…

Q: Am. 116.

A: To illustrate a firm operating in a perfectly competitive market, we can draw a diagram that shows…

Q: a. If a producer tries to sell oranges at a price of $0.50 per pound, what will be the quantity…

A: Demand:Demand represents the quantity of a good or service that consumers are willing and able to…

Q: Dz D₁ O 0 (A) P S₂ P S 0 (B) D₁ O Sz S₁ D D Q Q (C) (D) Which of the diagrams illustrates the effect…

A: Market Equilibrium without SubsidyTwo curves intersect on this graph:The demand curve (D) depicts…

Q: Summarise the most recent research on the effects of emissions and related laws on the economic…

A: Recent research on the effects of emissions and related laws on the economic growth of the BRICS…

Q: None

A: Approach to solving the question: Detailed explanation:Kindly reach out if you have any questions.…

Q: None

Q: please answer in text form and in proper format answer with must explanation , calculation for each…

A: Detailed Explanation:Part a:1. Finding Disposable Income (YD):Disposable income is calculated as…

Q: 2. The Phillips curve in the short run and long run The following graph plots aggregate demand…

A: All the parts are solved properly with detailed explanation.Hope you got your answer. If any query…

Q: if tobin q is greater than one , then the stock market value installed capital at more tha its cost…

A: When Tobin's q is greater than one, it suggests that the market values the firm's assets more highly…

Q: (Figure: Total Expenditures) As the price of the product rises from $0 to $40, what happens to total…

A: As we can see in the chart that when the price is $0, the quantity demanded is 50 unitsHence, total…

Q: Switching to powder coating technology will reduce the emission of volatile organic carbons (VOCs)…

A: Here's how to calculate the rate of return (ROR) for the powder coating technology investment:1.…

Q: 22. Consider Fig. 5, which shows the market demand as well as a monopolist's costs. The total fixed…

A: The monopolist will maximize profit where marginal revenue (MR) equals marginal costs (MC). Form the…

Q: Suppose in the Banking System (all numbers are in millions): Total Reserve = $72 Required Reserve…

A: First, let's set up the T-accounts for both the bank and the Federal Reserve before the…

Q: please answer in text form and in proper format answer with must explanation , calculation for each…

A: investment multiplier = 1 / (1 - MPC), accurately relates the investment multiplier to the Marginal…

Q: A village has six residents, each of whom has accumulated savings of $100. Each villager can use…

A: a. If each villager decides individually how to invest, the number of llamas sent onto the commons…

Q: Suppose a monopolist faces two markets with demand curves given by D1(p1) = 200 -p1 D2(p2) = 100…

Q: You need to purchase new tires for the SUV that was willed to you by your favorite aunt. The…

A: Solving for Y using a spreadsheet:This equation can be solved for Y using a spreadsheet's goal seek…

Q: based on the information in the table what is marla's profit margin? marla's smoothie shop total…

A: To calculate Marla's profit margin, we first need to find her profit, which is the difference…

Q: dont use excel i will 5 upvotes. Assuming a firm’s weighted average cost of capital is 12%, what…

A: Step 1: Given Value for Calculation Weighted Average Cost of Capital = wacc = 12%Cash Flow for Year…

Q: The following is a payoff matrix showing profit in millions of dollars when two companies…

A: Without additional information on dominance relationships or strategic considerations, it's…

Q: The hand written solution is not allowed please

A: The spending multiplier tells how much the overall spending of final goods and services will rise in…

Q: Exercise 3 Education as a Signal - = $10y; for For workers in Group H (high-skill workers), the cost…

A: Signaling theory, as first introduced by economist Michael Spence in 1973, focuses on how…

Q: In a small closed economy, its aggregate demand and output are given as the equations below, Y = C…

A: QUESTION 1. Deriving the IS Curve:We start with the national output equation:Y = C + I + GNow, plug…

Q: 00 110 5 Price level (CPT) 105 100 88 Ful employment. 50 [51 Real GDP AD₂ AD (trillions of dollars…

A: Referencehttps://courses.lumenlearning.com/wm-macroeconomics/chapter/the-expenditure-multiplier-effe…

Q: Firms do not add to their stock of capital when Tobin's q ratio is 0 . 9 . If q is less than 1 ,…

A: When Tobin's q ratio is less than 1, it indicates that the market value of installed capital is less…

Q: Calculate the PPP-adjusted GDP for each of the four countries, using the information found in the…

A: 1. Ona: PPP−adjustedGDP=12,000/1+(5/100)12,000/1.05≈11,429 2. Rye:…

Q: Hand written solutions are strictly prohibited

A: Step 1: The equilibrium pre and post-free trade in Guatemala's orange market is shown…

Q: None

A: Analysis of Nalah's foul-shooting performance based on the information provided:Game-by-Game…

Q: Many Government programs both redistribute income and correct a market failure. What are the market…

A: Government programs often aim to both redistribute income and correct market failures, reflecting a…

Q: If real GDP in a year was $3,600 billion and the price index was 104, then nominal GDP in that year…

A: Calculating Nominal GDP from Real GDP and Price IndexUnderstanding the Concepts:Nominal GDP:…

Q: None

A: The economy is at full employment level at where the potential GDP is equal to actual GDP. In the…

Q: A project requires an initial investment of $28.16 million to buy new equipment, and will provide…

A: The IRR is the discount rate at which the net present value (NPV) of future cash flows from an…

Q: Complete the payoff matrix to show how this scenario would end up as a prisoner's dilemma for…

A: Step 1: A situation known as a "prisoner's dilemma" occurs when two selfish players finally choose a…

Q: Two small engines are designed to help cleaning operation in a petrochemical company. Both seem to…

Q: Assume the economy is operating in a horizontal range of the aggregate supply curve. This fall in…

A: In the scenario where the economy is operating in a horizontal range of the aggregate supply curve,…

Q: Solve all questions...

A: Aggregate Demand (AD)Aggregate Demand represents the total demand for goods and services in the…

Q: Which of the given situations does not describe a "complication" of purchasing power parity theory?…

A: Option a: This option is incorrect because it illustrates how American and Mexican consumers have…

Question

What is the payback period for this project?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Engineering Economics 00011 Please provide a step by step solution using ROR
A company is deciding whether to lease or buy a new truck. Given the information provided below, if the company finds out the truck maintenance cost is $3000 incurred by the lessor only, and paid at the end of each year. Net Advantage of lease (NAL) Tax CCA $2,500 30% 40% Salvage $2,000 Cost of Debt 10% Useful life time 6 years The Company should (buy / lease) A/ the truck.
An asset has a purchase price of $100,000, CCA rate of 27%, maintenance is $750 at the end of each year, and expected salvage value is $0 at the end of its useful life in 5 years. The lessee pays no taxes, and the cost of debt is 10%. What is the maximum lease payment due at the beginning of each year acceptable to the lessee?
You are charged with choosing a vendor to produce a new software that is going to benefit your company. The project has a life cycle of 8 years and MARR of 8% annual interest. Part a.) Draw the cash flow diagram for each vendor. Part b.) Calculate a PW cost for each vendor. Part c.) Indicate which vendor you would choose. Task Development Programming Operation Support Vendor M Cost, $ 200,000 150,000 42,000 20,000 40,000 30,000 Time Frame Now Years 1-4 Now Years 1-3 Years 1-8 Years 1-8 Vendor N Cost, $ Time Frame 70,000 60,000 45,000 50,000 35,000 Now Now Years 1-5 Years 1-8 Years 1-8 Vendor O Cost, $ 150,000 Time Frame Years 1-8
PART 2 - C PROBLEM SOLVING PROBLEM NO.1 Compute the PW: $3500 market value productivity attributable to equipment per year (Operating costs have already been deducted fron the revenue) $8500 $8500 $8500 $8500 $8500 1 2 3 End of Year i= 18%/yr $23500 investment cost 5.
5- Year SV O&M 15,000 1000 12,000 1500 9,000 The table above lists salve value (SV) and operating and maintenance (O&M) cost of an asset through 3 years with the initial cost of $20,000. Given MARR is 10%, which of the statements 3 2000 is correct (choose the closest answer)? a) The marginal cost at year 2 is $6,000 and the annual cost (EUAC) through year two is $6,500 b) The marginal cost at year 2 is $6,000 and the annual cost (EUAC) through year two is $7,048 c) The marginal cost at year 2 is $6,500 and the annual cost (EUAC) through year two is $7,048 d) The marginal cost at year 2 is $6,500 and the annual cost (EUAC) through year two is $6,000
1
1
Please do in excel please
Please solve this in a copy with all process. Not in excel. If not done as instructed, I will down vote it.
Hand written plz asap i'll upvote
Economics An asset has a first cost of $12,000, an annual operating cost of $3500 and a salvage value of $5000 after 7 years. Calculate the annual worth for one cycle at i = 20% 1743- 6442- 3475- 5836- ооос