AMT, Inc., is considering the purchase of a digital camera for maintenance of designspecifications by feeding digital pictures directly into an engineering workstationwhere computer-aided design files can be superimposed over the digital pictures.Differences between the two images can be noted, and corrections, as appropriate, canthen be made by design engineers.a. You have been asked by management to determine the PW of the EVA ofthis equipment, assuming the following estimates: capital investment = $336,000; marketvalue at end of year six = $111,000; annual revenues = $114,000; annualexpenses = $7,000; equipment life = 6 years; effective income tax rate = 25%; and after-taxMARR = 8% per year. MACRS depreciation will be used with a five-year recovery period.b. Compute the PW of the equipment's ATCFs.Click the icon to view the GDS Recovery Rates (*) for the 5-year property class.Click the icon to view the interest and annuity table for discrete compounding whena. Calculate the PW of the EVA of this equipment.PWEVA (8%) = $(Round to the nearest hundreds.)

To calculate the Present Worth (PW) of the Economic Value Added (EVA) of this equipment, we need to…

Answered: AMT, Inc., is considering the purchase…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
Shipments of Product X from a plant to a wholesaler are made in lots of 600. The wholesaler's average demand for X is 100 units per week. The lead time from the plant to the wholesaler is 4 weeks. The wholesaler pays for the shipments when they leave the plant. 4. Refer to the scen ario above. What is the total of the wholesaler's current cycle plus pipeline inventories?
pls help asap on both
A power company faces demands during both peak andoff-peak times. If a price of p1 dollars per kilowatt-hour ischarged during the peak time, customers will demand 60 0.5 p1 kwh of power. If a price of p2 dollars is chargedduring the off-peak time, then customers will demand 40 p2 kwh. The power company must have sufficient capacityto meet demand during both the peak and off-peak times. Itcosts $10 per day to maintain each kilowatt-hour of capacity.Determine how the power company can maximize dailyrevenues less operating costs.
# 1 .A company has a production capacity of 200 units per 200 units per month and its fixed costs are P20,000 per month the variable cost per unit is P300.00 and each unit can be sold for P450.00 Economy measures are instituted to reduce the fixed cost by 10 % and the variable cost by 20%. determine the old and new break- even points. Draw a break- even chart.
Investors put up $1040000 to construct a building and purchase all equipment for a new restaurant. The investors expect to earn a minimum return of 10 per cent on thier investment. The restaurant is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks. Included in the fixed costs in 10% return to the investors and $2000 in other fixed costs. Variable costs include $2000 in weekly wages, and $600 per week in materials, electricity, etc. The restaurant charges $8 on average per meal. The operating profit per week of the restaurant is A)$0 B)$2900 C)$4600 D)$4900
uppose that you purchased a HVAC system five years ago for $75, 000. The O&Mcosts are $15, 000 this year and are expected to increase by $1, 000 each year for the next five yearsthen remain the same for the following years.The current salvage value of the system is $15, 000; salvage value after one year is estimated tobe $12, 000; after two years, $11, 000; after three years, $10, 000; after four years, $9, 000; and so on.A new industrial HVAC system is available for purchase at a price of $95, 000, including instal-lation. The market value of the new system will decrease at a rate of 15% each year. The O&Mcosts are expected to be $1, 000 in the first year, and will increase at a rate of 20% each year. Themaximum service life of the new system is 10 years. Assume that your company uses an interestrate of 10% for all project evaluations.(a) Find the remaining economic life of the currently owned asset.(b) What is the economic service life of the new system?(c) Use the…
ACME Anvil Corporation has done extensive analysis of their current process and found the following costs associated with the quality of their products and their revenue for the period: Quality Cost Scrap Products During Production Reprocessing During Production Warranty Claims Customer Returns Additional Shipping Charges Quality Training for Employees Quality Control Salaries Total Revenue O $155,000 O $135,000 Amount 155,000 135,000 650,000 800,000 Based on these figures, what is the amount of the Internal Failure Costs? $290,000 O $365,000 75,000 10,000 50,000 12,500,000
A process plant making 5000kg /day of a product selling for $1.75 per kg has annual directproduction costs of $2 million at 100 percent capacity and other fixed costs of $700,000. What isthe fixed charge per kg at the break-even point? If the selling price of the product is increased by10 percent, what is the dollar increase in net profit at full capacity if the income tax rate is 35percent of gross earnings?
Ella Ltd recently started to manufacture and sell productDG. The variable cost of product DG is £4 per unit and the totalweekly fixed costs are £18 000.The company has set the initial selling price of product DG byadding a mark up of 40 per cent to its total unit cost. It has assumedthat production and sales will be 3000 units per week.The company holds no stocks of product DG.Required:(a) Calculate for product DG:(i) the initial selling price per unit; and(ii) the resultant weekly profit. The management accountant has established that alinear relationship between the unit selling price (P in £)and the weekly demand (Q in units) for product DG isgiven by:P = 20 - 0:002QThe marginal revenue (MR in £ per unit) is related to weeklydemand (Q in units) by the equation:MR = 20 - 0:004Q(b) Calculate the selling price per unit for product DG that shouldbe set in order to maximize weekly profit. (c) Distinguish briefly between penetration and skimming pricingpolicies when launching a new…
P = KR/M equation is given by O Robertson O Marshall O Irving Fisher Pigou Next
Prob. # 5] A rigid tank contains a mixture of vapor and liquid water at a temperature of 70 "C. The tank has a volume of 500 liters, the liquid phase occupying 30% of volume. Determine the amount of heat added to the system to raise the pressure to 3.5MPaa.

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