Answered: Annual Cost Price Year Production…

Annual Cost Price Year Production (tons) per Ton per Ton 1 90,000 $25 $35 120,000 20 36 120,000 22 37 4 100,000 24 38 80,000 26 39 6 60,000 28 40 3.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Northern Engineering is analyzing a mining project. Annual production, unit costs, and unit revenues are in the table. The first cost of the mine setup is $6 million. If i is 15%, what is the PW?

Annual
Cost
Price
Year Production (tons) per Ton per Ton
1
90,000
$25
$35
120,000
20
36
120,000
22
37
4
100,000
24
38
80,000
26
39
6
60,000
28
40
3.

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