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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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
Solve question 1-62
13.12 You work for Bellevue Window Products. While performing an analysis for a new window prod- uct, you found a report from last year that pro- vided the following information regarding the manufacture of a similar product: annual produc- tion rate T 40,000 units; selling price = $70 per unit; fixed production cost = $240,000 per year; variable production cost = $1,700,000 per year; variable selling expenses = $96,000 per year. As a first-cut, you decide to use this information to estimate (a) the breakeven production rate per year, (b) the company's profit last year, and (c) the annual production rate that would generate a profit of $1,000,000 per year. What are your estimates?
# 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.
7. Compute for the number of blocks that an ice plant must be able to sell per month to break-even based on the following data: Cost of electricity per block.. tax to be paid per block. Real Estate Tax Salaries & Wages Others . Selling price of ice P20.00 P2.00 . P3,500/month P25,000/month P12,000/month P55.00/block
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
Apple wants to launch a new product. it is observed that the fixed cost of the new product is $35,000 and the variable cost per unit is $500. The revenue function for the sale of D unit is 5000D-100 D2. The company's break even points are
Techiefy Co. wants to launch a new product. it is observed that the fixed cost of the new product is $35,000 and the variable cost per unit is $500. The revenue function for the sale of D unit is 5000D-100 D2. The company's break even points are
APPLICATION • Alta Production, Inc., is using the account analyis approach to identify the beharior of production costs for a month in which it prodaced 350 units. The production manager was asked to review these costs and provide her best guess as to how they should be catevorized. She resoonded with the followine information: Tetal fe) S270,000 134,000 101.000 $507.000 Variable (e) S270,000 130,000 100,000 3500.000 Fixed Materials used in production Labor used in production Production facility costs Total production cost 4.000 3.000 37.000 • Alta Production, Inc., reported the following production costs for the 12 months January through December. Reporting Period (Month) Total Production Costs Level of Activity (Units Produced) January $460,000 300 February 300,000 220 March 480,000 330 Аpril 550,000 390 570,000 310,000 May 410 June 240 July 440,000 290 August 455,000 320 September 530,000 380 250,000 150 October November 700,000 450 December 490,000 350
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…

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