Determine the hourly cost of tires for a hydraulic excavator, whose set of tires cost S4,500 with a useful life of 3500 hours. The average cost of repairs is 12 percent of depreciation. Select the correct response: O $1.15 O $1.44 O $1.26 O $1.30

Determine the hourly cost of tires for a hydraulic excavator, whose set of tires cost S4,500 with a useful life of 3500 hours. The average cost of repairs is 12 percent of depreciation. Select the correct response: O $1.15 O $1.44 O $1.26 O $1.30

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: The cost of equipment is P 500,000.00 and the cost of installation is P 30,000.00. If the salvage…

A: Cost of equipment =P 500,000 Installation cost =P30,000 Salvage value after 5 years=10% of the cost.…

Q: eer. The annual depreciation will be $14,250 and the tax rate is 24 percent. What is the operating…

A: Cash flow in economics is the financial vitality for a business, representing the continuous…

Q: Airodyne Wind, Inc., has wind tunnels that can operate vertically or horizontally for evaluating the…

A: Given: Interest rate=14% Years=4

Q: It costs P1000.00 for hand tools and P1.50 labor per unit to manufacture a product. Another…

Q: O a. O b. 6% 8%

A: Given initial cost = 50,000 P Salvage = 10,000 Time = 10 years

Q: 1. A Volvo car dealer wishes to sell a 1995 Volvo 740 GLE to a customer for $10,000.00 which…

A: Price of a car = 10000 a down payment = 20% so the loan amount is 80% of the price =…

Q: A unit of welding machine cost P 45,000.00 with an estimated life of 5 years. Its salvage value is P…

Q: The first cost of a pipe forming machine is Php 1,000,000.00. It can produce 10,000 pipes during its…

A: Answer; a. Fixed cost per piece of pipe:15 b. Variable cost per piece of pipe:51 c. Total…

Q: The cost of Laboratory equipment is P 1,000,000.00 and the cost of installation and delivery charge…

A: Depreciation implies the falls in the value of fixed assets because of normal wear and tear, efflux…

Q: 4) In order to make a replacement decision, a firm calculated the equivalent annual cost of owning…

A: Annual Cost is the cost of utilizing the estimated units of cost of living in a particular unit. It…

Q: Agranite mine has a 14% depletion allowance. Last year, the local granite mine had gross income of…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: installation costs him P31,000.00 If the life of the equipment with an estimated salvage value of…

A: Salvage value is the estimated book worth of a asset after deterioration/depreciation is finished,…

Q: 2 (10 points) Tiffany bought a piece of equivalent for $40,000. The equipment has a useful life of 5…

A: Given : Initial Book Value = $40000 Useful Life = 5 years Salvage value=$5500

Q: 2. A certain company is considering two types of machine for its operation. The data are as follows:…

A: Present Worth refers to discounting of the future cash flow to the present at provided fixed rate .…

Q: Karim Inc. calculated the annual cost öf öwning an EUAC Annual EUAC Replacement Capital Repair…

A: The cost of owning and operating as well as maintaining an asset throughout the length of its entire…

Q: A new CNC lathe machine requires an investment of $300,000 today and it returns $69,000 per year for…

A: here we calculate the equivalent cost of the machine by using the given information , so the…

Q: A chemical plant is considering installing a new water purification system that costs $21 500. The…

A: Given information Initial cost=21500 Salvage value determined by 20% declining balance method Annual…

Q: 1-5 Calculate financial net income AFIT and net cash flow AFIT for year 3 only. Your Time 0…

A: Cash flow refers to the movement of money into and out of a business, organization, or individual's…

Q: +

A: STEP 1: Determine the annual depreciation using the straight-line method Annual depreciation =…

Q: Compute the salvage value of an equipment if its original cost is P 2 550 000. The economic life of…

A: The predicted book value of an asset after depreciation is known as the salvage value. This value is…

Q: Question 25 A replacement study showed that the components of the total costs of an asset are as…

A: The economic life of an asset is the number of years that the asset is useful to the business.

Q: An equipment costs 115,000 QAR and has an estimated salvage value of 10,000 QAR at the end of 5…

A: MACRS formula depreciation uses either a declining balance formula or a straight-line formula.…

Q: Given the Given, solution and cash flow diagram. Factory equipment has an initial cost of P200,000.…

A: The formula for straight-line depreciation is: straight-line depreciation amount per year =initial…

Q: Oa. P25,000.00 Ob. P30,000.00 Oc. P15000.00 Od. P20,000.00

A: Given initial cost = 50,000 P Salvage = 10,000 Time = 10 years

Q: 2. Allwhite Company sells its single product for P30 per unit. The contribution margin ratio is 45%,…

A: Total Revenue refers to the total amount of money that the producer or seller receives for selling…

Q: The following are data from a production, calculate; The Break-even point in terms of sales value…

A: In the question above, it is given that : Monthly Fixed Factory Overhead Cost = P 600,000…

Q: The purchase price of a machine is $7500, its estimated salvage value is $3000, and its service life…

A: Depreciable amount = $7500 - $3000 = $4500 Sum of years' digits = 6+5+4+3+2+1=21

Q: How many years is the economic life of a machine if its original cost is P1 400 000, salvage value…

A: Straight line method of depreciation is the method by which we calculate the depreciation on a asset…

Q: The value that is closest to the rate of return for the following cashflow is. Year 10 11 2 13 4 O…

A: Given Year Cash flow 0 -200 1 100 2 100 3 100 4 100 We know that at IRR, NPV=0 Let…

Q: A machine was bought 10 years ago for 30,000 it could be sold today for 10,000 next year for 8,000…

A: Current Value of machine = 10000 Value after 1 year = 8000 Value after 2 years = 5000 Value after 3…

Q: ZYK company makes its policy that for every new equipment purchased, the annual depreciation should…

A: Dear learner as you have posted multiple questions as per our policy we have solved only first…

Q: On 3/15/18 Brian donated a painting worth $500,000 to an art museum. If Brian, had sold the painting…

A: The charitable contribution is $500,000

Q: Question 7 A toll way was built in 2002 -2004 at annual construction cost of $10 million in which…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Calculate all applicable documentary stamp taxes and intangible taxes associated with financing the…

A: Documentary Stamp Tax: a charge on the transfer of an obligation or right or property shown by a…

Q: Assume the purchase price of a combine is $250,000. It is estimated to have a salvage value of…

A: please find the answer below.

Q: Lamar Company is studying a project that would have an eight-year life and require a S1.600,000…

A: The payback period is the time you need to recover the cost of your investment. In simple terms, it…

Q: What is the present value of annual deposits of 2000TL made to an account for 12 years at i:0.25,…

A: The present value of the annual payments will be computed as the sum of the PV of 2000 TL at 0.25…

Q: The initial investment in the equipment needed for the project is $50,000 for a duration of 10…

Q: The first costs of an equipment is P 65,000 and a salvage value of P 3,000 at the end of its 6- year…

A: Cost of equipment = 65000 P Salvage value = 3000 Time = 6 years

Q: For the defender, it is given that the annual equivalent costs for one year is $2,500, for two years…

A: Given : The annual equivalent costs for : one year = $2,500, for two years = $2,300, for three years…

Q: Consider the revenues and costs in 2019 for Spruce Decor Inc, an Alberta-based fumiture company…

A: Profits refer to the financial gains or positive earnings obtained by an individual, organization,…

Q: w many years vage value is

A: *Answer:

Question

Determine the hourly cost of tires for a hydraulic excavator, whose set of tires cost S4,500 with a useful life of 3500 hours. The average cost of repairs is 12 percent of depreciation.
Select the correct response:
O $1.15
O $1.44
O $1.26
S1.30

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Question 5 Cost data of a machine is shown in the following table with an annual rate of 12%. Calculate annual worth at end of year 2 M&O cost Retention Yr. Market Value per year O First Cost) 55,000 1 35,000 45.000 2 20,000 47.500 3 15,000 50.000 4 2.000 53.500 O 6a256 O 69209 O R476 O 67.854 Question 6 Use same cost data from last question and 12% annual rate of return. Calculate annual worth at end of Year 3. O 66.765 O 64332 O 67.428 O 66256 D Question 7 Use the same cost data of the machine from the above 2 questions and 12% interest rate per year. What is the ESL of this machine? 01 04
Economics QUESTION 4 An asset with initial cost base of 6 million was bought 5 years ago. At the end of the current year (fifth year) the asset is sold by 1.1 million. The asset belongs to the 7 years MACRS property class. Knowing that the gains(loss) tax rate is 40%, what is the net proceeds resulted from selling this asset? $897,400 2,044,012 978,700 O 2,371,600
FAST!
Consider a project to supply Detroit with 27,000 tons of machine screws annually for automobile production. You will need an initial $4,600,000 investment in threading equipment to get the project started; the project will last for 5 years. The accounting department estimates that annual fixed costs will be $1,100,000 and that variable costs should be $205 per ton; accounting will depreciate the initial fixed asset investment straight-line to zero over the 5-year project life. It also estimates a salvage value of $475,000 after dismantling costs. The marketing department estimates that the automakers will let the contract at a selling price of $308 per ton. The engineering department estimates you will need an initial net working capital investment of $440,000. You require a return of 12 percent and face a tax rate of 23 percent on this project. a. Suppose you’re confident about your own projections, but you’re a little unsure about Detroit’s actual machine screw…
please answer asap
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…
Legel Q L Given Given 76 248 492 +84 1.100 1,416 1.708 1.952 - NM & 1 2 3 4 S 9 > 7 8 K Given S N N N N N N N N 241 2 2 APL Q/L 76 124 A 961 220 B ttc 244 MPL AQ/AL J 244 292 316 ta DEMON
3
None
None
5.RTOPIC: ENGINEERING ECONOMICS PLEASE ANSWER IN 4 DECIMAL POINTS
New ans