High Road Low Road $275,000 $425,000 Construction cost/mile Number of miles required 35 Annual benefit/car-mile $0.02 Annual O&M costs/mile $2,000 15 $0.04 $10,000

Q: The plant manager of IHK is considering the purchase of a new robotic assemble plant. The new…

A: Given ,Cost of plant- $250,000Direct labour savings- $ 62,500 per yearNumber of years-10a)…

Q: The Payback period as per calculation is  6 Years . Pre determined payback period is 5.5 Years…

A: Solution: Computed payback period = 6 years Required payback period = 5.5 years

Q: Two design alternatives for a new ride called the Scream Machine, the first of which requires an…

A: The External Rate of Return (ERR) is calculated based upon rate of return on cash flows considering…

Q: You are evaluating a project for a superior pickleball paddle.  You estimate the sales price to be…

A: NPV It is a capital budgeting tool to decide on whether the capital project is beneficial for the…

Q: Assume that there are two competing projects, A and B. Project A has an NPV of $1,000 and an IRR of…

A: NPV (NET PRESENT VALUE) IS USED TO MEASURE THE IMPACT THAT COMPETING PROJECTS HAVE ON THE VALUE OF…

Q: the department of public works and highways (dpwh) is considering the construction of a new highway…

A: Benefit-cost ratio is an indicator showing the relationship between relative costs and benefits of a…

Q: A new heat exchanger must be installed by CSI, Inc. Alternative A has an initial cost of $33,400,…

A: Net Present worth (NPW) is calculated for taking capital decisions if the cash inflows are greater…

Q: Consider the retrofitted space-heating system with given the investment of $110,000 and market value…

A: The question is based on the calculation of economic worth of machine.

Q: The construction division of WTG Construction estimates that the annual maintenance cost of a…

A: Time Value of Money (TVM): It is based on a principle that the money in hand now has more value than…

Q: Dunkin City wants to build a new bypass between two major roads that will cut travel time for…

A: BC Analysis : Benefit cost analysis is an analysis based on Benefit cost ratio. Benefit Cost Ratio =…

Q: A new equipment is being considered to replace an old equipment in a facility. The equipment would…

A: New Equipment Cost = $7,480 Life =15 years Discount Rate = 6% Year 10 = Special Maintenance to be…

Q: The Arkansas Department of Transportation may build a new highway between Texarkana and Fort Smith,…

A: Incremental Analysis is a method under which decision making is done using the cost difference…

Q: A new engineer is evaluating whether to use a larger-diameter pipe for a water line. It will cost…

A: The present worth of an investment is the net current worth of a project computed by deducting the…

Q: A flexible pavement construction project is proposed. The estimated service life is 20 years. The…

A: NPV = -205000

Q: Management is considering two alternatives. Alternative A has projected revenue per year of $100,000…

A: Relevant cost is the cost which is relevant in decision making process. Because irrelevant cost do…

Q: Heckrwee Industries is considering a project that would require an initial investment of $101,000.…

A: Internal rate of return (IRR) is the rate at which the net present value (NPV) of the project…

Q: <pected sales. 115,000 units per year mit price: $220 ariable cost: $132 xed cost: $4,890,000 he…

A: Net present value is determined by deducting the initial investment from the current value of cash…

Q: You are evaluating a project for The Farstroke golf club, guaranteed to correct that nasty slice.…

A: NPV is also known as Net Present Value. It is a capital budgeting technique which helps in decision…

Q: The Army Corps of Engineers wants to construct a dam on a flood-prone river. The estimated…

A: Benefit to Cost ratio, BCR with ratio greater than 1.0 should be the project evaluation criteria for…

Q: Three mutually exclusive design alternatives are being considered. The estimated cash flows for each…

A: The capital budgeting is a technique that helps to analyze the profitability of the project.

Q: To address the chronic traffic condition at a major thoroughfare, two plans are being considered.…

A: NPV is a capital budgeting techniques which help in calculating the present value of any project on…

Q: Do the following problems. You must show your work.c) Find the IRR and MIRR of the following project…

A: Excel Spreadsheet:

Q: A landfill has a first cost of $274,000. Actual operating and maintenance costs for the first year…

A: Present Worth: Under present worth concept cash flow are discounted to year zero using the given…

Q: GoG is considering two alternative proposals to improve road safety and reduce traffic congestion in…

A: Net present value is present value of annual benefit less the first cost of project. Present value…

Q: A highway is to be built connecting Maud and Bowlegs. Route A follows the old road and costs $4…

A: The comparison of different alternatives can be made on the basis of NPV. But if the initial…

Q: You are evaluating two different systems: System A costs $45,000, has a three year life and costs…

A: Avaiable alternatives has different life so, we need to find out the equivalent annualized cost of…

Q: Two roadway design are under consideration. Design 1A will cost $3 million to build and $100,000 per…

A: AW=-Capitalized cost×Rate of interest

Q: Calculate the annual benefits to motorists of the new road as based on their willingness to pay

A: Given that: Suppose a proposed new road to be constructed in North Carolina between Raleigh and…

Q: You are evaluating a project for The Farstroke golf club, guaranteed to correct that nasty slice.…

A: Operating cash flow (OCF) is the cash generated by a company in its normal business operations. It…

Q: Suppose that you have just completed the mechanical design of a high-speed automated palletizer that…

A: Net present value is the technique used in capital budgeting to evaluate the acceptability of the…

Q: The Department of public Works and Highways (DWH) is considering the construction of a new highway…

A: The present value of the future sum denotes the discounting of the future value to arrive at their…

Q: A firm has only $10,000 to invest and must choose between two projects. Project A returns $12,400…

A: In this question, we have to calculate the rate of return in each alternative to choose one…

Q: A WiMAX wireless network integrated with a satellite network can provide connectivity to any…

A: The best alternative should be the one with an IRR greater than the MARR.

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.