Arithmetic progression 8\ A construction company will be penalized each week of delay in construction for a large mall. The penalty will be OMR 1500 for the first week and will increase by OMR 250 for each subsequent week. The maximum amount which the company can pay toward penalty is OMR 4000 per week. a) Determine the penalty amount of the 5th week of delay. b) What is the total amount of penalty until the 6th week of delay? c) Find the maximum number of weeks by which the completion of work can be delayed?

Arithmetic progression 8\ A construction company will be penalized each week of delay in construction for a large mall. The penalty will be OMR 1500 for the first week and will increase by OMR 250 for each subsequent week. The maximum amount which the company can pay toward penalty is OMR 4000 per week. a) Determine the penalty amount of the 5th week of delay. b) What is the total amount of penalty until the 6th week of delay? c) Find the maximum number of weeks by which the completion of work can be delayed?

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs

Section: Chapter Questions

Problem 1EP

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5. A concrete road requires no upkeep until the end of 3 years when P54, 000 will be needed for repairs. After this P93, 000 will be needed for repairs at the end of each year for the next 6 years, then P125, 000 at the end of each year for the next 5 years. If money is worth 15% compounded annually, what was the equivalent uniform annual cost for the 14-year period?
Ay 2. Mcq 10. Harcourt Manufacturing (HM) has the capacity to produce 12,400 fax machines par year. HM currently produces and sells 8,200 units per year. HM currently leases its excess capacity for a rental fee of $55,500. The fax machines normally sell for $220 each. Modem Products has offered to buy 3,200 fax machines from HM for $120 each. Unit-level costs associated with manufacturing the fax machines are $39 each for direct labor and $64 each for direct materials. Product-level and facility- level costs are $62,000 and $77,000, respectively. Based on this information (ignore qualitative characteristics) A. HM should reject the offer because accepting it will reduce profitability by $12,400. B. HM should reject the offer because accepting it will reduce profitability by $1,100. C. HM should accept the offer because accepting it will contribute $12,400 to profit. D. HM should accept the offer because accepting it will contribute $55,500 to profit.
8
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9. A company can manufacture a product with off-the-shelf hand tools. Fixed costs will be $1,000 for tools and $1.50 manufacturing costs per unit. As an alternative, an automated system will cost $15,000 with S0.50 manufacturing cost per unit. With an anticipated volume of 5,000 units, the break-even point in years is a) 2.0 yr. b) 2.8 yr. c) 3.6 yr. d) 10.0 yr.
K A highway bridge is being considered for replacement. The new bridge would cost $X and would last for 24 years. Annual maintenance costs for the new bridge are estimated to be $27,000. People will be charged a toll of $0.22 per car to use the new bridge. Annual car traffic is estimated at 360,000 cars. The cost of collecting the toll consists of annual salaries for six collectors at $9,000 per collector. The existing bridge can be refurbished for $1,400,000 and would need to be replaced in 24 years. There would be additional refurbishing costs of $80,000 every five years and regular annual maintenance costs of $17,000 for the existing bridge. There would be no toll to use the refurbished bridge. If MARR is 10% per year, what is the maximum acceptable cost (X) of the new bridge? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10per year. Choose the correct answer below. .... A. The maximum acceptable cost of the new bridge is $1,668,576.…
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7. Evergreen Fertilizer Company produces fertilizer. The company's fixed monthly cost is $25,000 and its variable cost per pound of fertilizer is $0.15. Evergreen sells the fertilizer for $0.40 per pound. Determine the monthly break-even volume for the company. If the maximum operating capacity of Evergreen Fertilizer Company described in Problem 2 is120,000 pounds of fertilizer per month, determine the break-even volume as a percentage of capacity. • If Evergreen Fertilizer Company in Problem 2 changes the price of its fertilizer from $0.40 per pound to $0.60 per pound, what effect will the change have on the break-even volume? • If Evergreen Fertilizer Company changes its production process to add a weed killer to the fertilizer in order to increase sales, the variable cost per pound will increase from $0.15 to $0.22.What effect will this change have on the break- even volume computed in Problem 4? If Evergreen Fertilizer Company increases its advertising expenditures by $14,000 per…
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