Want solution to below accounting problem Calculate cost per ton at 300m depth.Copper Canyon Mining extraction costs: Basecost per ton: $85, Every 100m deeper: +12%cumulative, Equipment wear: +$3 per ton per100m, Labor premium: +$5 per ton per 100m

To calculate the cost per ton of extraction at a depth of 300 meters, we need to account for the…

Answered: Calculate cost per ton at 300m depth.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Laurman, Inc. is considering the following project: Required investment in equipment Project life Salvage value The project would provide net operating income each year as follows: Sales Variable expenses Contribution margin Fixed expenses: $2,205,000 7 225,000 $2,750,000 1,600,000 $1,150,000 Salaries, rent and other fixed out-of pocket costs Depreciation Total fixed expenses Net operating income. Company discount rate Required: $520,000 350,000 870,000 $280.000 18% (Use cells A4 to C18 from the given information, as well as 824, and A30 to D45 to complete this question. Negative amounts or amounts to be deducted should be input as negative values and will display in parentheses.) 1. Compute the annual net cash inflow from the project. 2. Complete the table to compute the net present value of the investment. $630,000 nitial investment „Annual cost savings Salvage value of the new machine Total cash flows Discount factor Present value of the cash flows Net present value Use Excel's PV…
You are given the following forecasted data about a project: • Project life = 3 years • Required investment $1,200,000 • Salvage value = $200,000 Depreciation method = straight-line depreciation • Unit price = $140 • First year's demand = 100,000 units Annual demand growth rate 5% Unit variable cost $80 Annual fixed cost = $10,000 • Income tax rate = 40% • MARR = 10% Suppose the key variable is identified here to be the unit variable cost. This variable's most likely value is $80 (as indicated above), but what would happen to the NPW if it were $90 instead? The change in the NPW values (new NPW - original NPW) is closest to: -$1,563,110.44 $1,563,110.44 -$1,875,732.53 $1,875,732.53
A equipment costs $35,000, O&M = $1500/year. Savings = $12,000/year. Salvage @ 5 years = $6500. Find rate of return
For the below ME alternatives, which machine should be selected based on the AW analysis. MARR=10% First cost, $ Annual cost, $/year Salvage value, $ Life, years Machine A 15000 B- AW for machine B= 8,342 4,000 Answer the below questions : Machine B 6 20,447 6,000 5,000 Machine C 10000 4,000 1,000
The accounting rate of return on the average cost of investment (ARRAC) is 19%. The project has a salvage value of P 8,000. The average cost of investment is P326,000 What is the accounting rate of return on the original cost of investment (ARROC)?a. 9.1%b. 9.3%c. 9.6%d. 9.9%
Required information A project has a first cost of $670,000, a salvage value of 27% of the first cost after 3 years, and annual (GI-OE) of $275,000. Assume the company has a Te of 37%. Determine the approximate after-tax rate of return (ROR). The after-tax rate of return (ROR) is determined to be
Compute the benefit cost ratio of the following project: Project cost = P80 000 Gross Income = P25000/year %3D Operating Cost = P6000/year Salvage value = 0 Life of project = 10 years %3D Rate of interest = 12%
What is the annual equivalent worth of a project where (a) the initial investment is $50,000; (b) will have revenues of $8,000 per year; (c) annual cost of operation and maintenance of $1,200 and (d) a residual or salvage value of $2,000 after 15 years? Assume rate of return is 8%. A. $-41,200 B. $13,438 C. $6,800 D. $288 E. -$712 F. $3,600
a) Use Repeatability Assumption to compare between three alternatives X, Y and Z at (MARR=18% per year). Project Investment cost Production rate per year 20,000 Price per unit Annual expenses Salvage value Useful life (years) A В C $90,000 $50,000 $35,000 24,000 18,000 $6 $2.8 $4 $6,000 $5,000 $4,000 $10,000 $18,000 3
You are considering the following project. What is the NPV of the project? WACC of the project: 0.10 Revenue growth rate: 0.05 Tax rate: 0.40 Revenue for year 1: 13,000 Fixed costs for year 1: 3,000 variable costs (% of revenue): 0.30 project life: 3 years Economic life of equipment: 3 years Cost of equipment: 20,000 Salvage value of equipment: 4,000 Initial investment in net working capital: 2,000
Required information A company that manufactures magnetic flow meters expects to undertake a project that will have the cash flows estimated. First cost, $ Equipment replacement cost in year 2, $ Annual operating cost, $/year Salvage value, $ Life, years -880,000 -300,000 -930,000 250,000 14 At an interest rate of 10% per year, what is the equivalent annual cost of the project? Find the AW value using tabulated factors The equivalent annual cost of the project is $- 980,731.95
A PROJECT IS ESTIMATED TO COST P 100,000.00, LASTS 8 YEARS, AND HAVE A P 10,000.00 SALVAGE VALUE. THEANNUAL GROSS INCOME IS EXPECTED TO AVERAGE P 24,000.00 AND ANNUAL EXPENSES, EXCLUDINGDEPRECIATION, WILL TOTAL P 6,000.00. IF CAPITAL IS EARNING 10% BEFORE INCOME TAXES, DETERMINE IFTHIS IS A DESIRABLE INVESTMENT USING:A.) RATE-OF-RETURN METHODB.) ANNUAL COST METHODC.) PRESENT-WORTH COST METHOD

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Calculate cost per ton at 300m depth. Copper Canyon Mining extraction costs: Base cost per ton: $85, Every 100m deeper: +12% cumulative, Equipment wear: +$3 per ton per 100m, Labor premium: +$5 per ton per 100m