not use ai please Civil engineering consulting firms that provide services to outlying communities are vulnerable to a number of factorsthat affect the financial condition of the communities, such as bond issues, real estate developments, etc. A smallconsulting firm entered into a fixed - price contract with a spec home builder, resulting in a stable income of $330,000per year in years 1 through 8.000. At the end of that time, a mild recession slowed the development, so the partiessigned another contract for $160,000 per year for 2.00 more years. Determine the present worth of the two contracts atan interest rate of 15.00% per year. (Round the final answer to three decimal places.)The present worth of the two contracts is determined to be $

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Answered: Civil engineering consulting firms that…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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XYZ corporation has budgeted P300,000 per year to pay for labor over the next five years. If thecompany expects the cost of labor to increase by P10,000 each year, what is the expected cost ofthe labor in the first year, if the interest rate is 10%
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Assume you are 25 years old and you are professionally employed. You are approached by two investment providers. Investment provider A guarantees you an annual payment of 325000 Rand (at current value) post retirement age of 65, increasing at a rate of 5% for 20 years after retirement age. Investment provider B guarantees you an annual payment of 375000 Rand (at current value) post retirement age of 65, increasing at a rate of 5% for 15 years after retirement age. Note: First payout is at age 66. Assume average annual inflation pre-retirement and post-retirement to be 7% and average investment growth to be 9%. Calculate the annual payments that need to be paid to the investment providers.
A company is developing a new electronic product. It expects to spend $38 million on Research and Development and then another $6 million on Manufacturing Engineering. After completing all this, the company expects a cost of $15 per unit to manufacture and plans to build in a profit of $5 per unit into the price. The company needs to recover the cost of R&D plus Manufacturing Engineering over five years through sales of 4 million units over those five years. What will the company need to establish as the sales price for the unit?
A baseball team has signed a draft pick to a two year contract. The player's expectedmarginal revenue product in year 1 and year 2 are $1-million and $1.7-millionrespectively. The contracted wage is $1.3-million in the first year. The interest rate is7% each year. The competitive wage in year 2 is expected to be $1.8-million. If theteam is indifferent about the player resigning with it at the end of his contract, howmuch will they pay him in the second year? Use a$ and commas.
The sole proprietor of the FM2 Financial Services, Bondo, receives allaccounting profits earned by her firm and a K28,000-a-year salary she pays herself. Itis noteworthy that she also has a standing salary offer of K35,000 a year if she agreesto work for Bank of Zambia. If she had invested her capital outside her own company,she estimates that would have made a return of K22,000 a year. Further, informationhas reached you that last year, Bondo’s accounting profit was K50,000. Calculate hereconomic profit?
Joseph and three other friends bought a $290,000 house close to the university at the end of August last year. At that time, they put down a deposit of $20,000 and took out a mortgage for the balance. Their mortgage payments are due at the end of each month (September 30, last year, was the date of the first payment) and are based on the assumption that Joseph and his friends will take 20 years to pay off the debt. Annual nominal interest is 6 percent, compounded monthly. It is now February. Joseph and his friends have made all their fall-term payments and have just made the January 31 payment for this year. How much do they still owe? Click the icon to view the table of compound interest factors for discrete compounding periods when i = 0.5%. They will owe $ (Round to the nearest dollar as needed.)
Civil engineering consulting firms that provide services to outlying communities are vulnerable to a number of factors that affect the financial condition of the communities, such as bond issues, real estate developments, etc. A small consulting firm entered into a fixed-price contract with a spec home builder, resulting in a stable income of $330,000 per year in years 1 through 8.000. At the end of that time, a mild recession slowed the development, so the parties signed another contract for $160,000 per year for 2.00 more years. Determine the present worth of the two contracts at an interest rate of 15.00% per year. (Round the final answer to three decimal places.) The present worth of the two contracts is determined to be $
Brian lives in San Diego and runs a business that sells guitars. In an average year, he receives $733,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $433,000; he also pays wages and utility bills totaling $257,000. He ovwns his showroom; if he chooses to rent it out, he vill receive $13,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Brian does not operate this guitar business, he can vork as a paralegal, receive an annual salary of $23,000 vith no additional monetary costs, and rent out his showroom at the $13,000 per year rate. No other costs are incurred in running this guitar business. Identify each of Brian's costs in the following table as either an implicit cost or an explicit cost of selling guitars. Implicit Cost Explicit Cost The vholesale cost for the guitars that Brian pays the manufacturer The salary Brian could earn if he worked as a paralegal The vages and utility…
Kindly provide a CLEAR and COMPLETE answer.A man purchased a house for P425,000. In the first month that he owned the house, he spent P75,000 on repairs and remodeling. Immediately after, the house was remodeled, he was offered P545,000 to sell the house. After some consideration, he decided to keep the house and have it rented for P4,500 per month starting two months after the purchase. He collected rent for 15 months and then sold the house for P600,000. If the interest rate was 1.5% per month, how much extra money did he make or lose by selling the house immediately after it was remodeled?
The owners of a small manufacturing concern have hired a manager to run the company with the expectation that he will buy the company after five years. Compensation of the new vice president is a flat salary plus 75% of first $150,000 of profit, and then 10% of profit over $150,000. The purchase price for the company is set as 4½ times earnings (profit), computed as average annual profitability over the next five years. Does this contract align the incentives of the new vice president with the goals of the owners?
SUBJECT: ENGINEERING ECONOMICS Show the complete solution. The final answer is below. Suppose a man receives an initial annual salary of 60,000Php, increasing at the rate of 5,000Php a year. If money is worth 10%, determine his equivalent salary for a period of 8 years. Answer: A = 75,022.39Php

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