In automobile industry there is a growing demand for electrical vehicles, in the present era, conduct an analysis on any commercially available electrical vehicle being used, consider initial investment, annual costs( operation costs/maintenance costs), salvage value, revenue if any with usage and find out whether buying an electric car is preferable or not over a conventional automobile which runs on fuel.(prepare estimate for conventional fuel run car and electrical car and evaluate which one is profitable using any project evaluation method of your choice). Discuss with an inference which one is preferred(Prepare for at least 3 years)

In automobile industry there is a growing demand for electrical vehicles, in the present era, conduct an analysis on any commercially available electrical vehicle being used, consider initial investment, annual costs( operation costs/maintenance costs), salvage value, revenue if any with usage and find out whether buying an electric car is preferable or not over a conventional automobile which runs on fuel.(prepare estimate for conventional fuel run car and electrical car and evaluate which one is profitable using any project evaluation method of your choice). Discuss with an inference which one is preferred(Prepare for at least 3 years)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Use the following information to answer questions 1 to 5. A development corporation purchased land that will be the site of a new luxury condominium complex. Management is considering a six month market research study designed to learn more about potential market acceptance of the condominium project. Management anticipates that, if conducted, the market research study will provide one of the following two results. 1. Favorable report (F): A significant number of the individuals contacted express interest in purchasing a condominium. 2. Unfavorable report (U): Very few of the individuals contacted express interest in purchasing a condo- minium. After deciding whether to conduct the market research study, they have the following two decision alternatives. d1 = a small complex with 30 condominiumsd2 = a medium complex with 60 condominiumsFollowing this, a chance event concerning the demand for the condominiums has two states of nature. s1 = strong demand for the condominiumss2 = weak…
Check each of the following that are sunk costs. Group of answer choices A machine then was used to research a new product that can be used in the production process if we go forward with the project, or sold if we do not The market value of the land on which we plan to build a factory The original cost of the land on which we plan to build a factory The amount we paid our research scientists to determine the feasibility of a product we are now considering. The cost to construct a factory we will build if we launch the a new product
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A pipeline engineer working in Kuwait for the oil giant BP wants to perform a present worth analysis on alternative pipeline routings—the first predominately by land and the second primarily undersea. The undersea route is more expensive initially due to extra corrosion protection and installation costs, but cheaper security and maintenance reduces annual costs. Use Present Worth Analysis with a MARR = 10% to determine which route should be selected.
separate solution please for a and b. Thank you
An electrical utility is experiencing a sharp power demand that continues to grow at a high rate in a certain local area. Two alternatives are under consideration. Each is designed to provide enough capacity during the next 25 years, and both will consume the same amount of fuel, so fuel cost is not considered in the analysis. • Alternative A. Increase the generating capacity now so that the ultimate demand can be met without additional expenditures later. An investment of $33 million would be required, and it is estimated that this plant facility would be in service for 25 years and have a salvage value of $0.7 million. The annual operating and maintenance costs (including income taxes) would be $0.4 million. salvage • Alternative B. Spend $15 million now and follow this expenditure with future additions during the 10th year and the 15th year. These additions would cost $18 million and $12 million, respectively. The facility would be sold 25 years from now with a value of $1.25…
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Example: It is proposed to construct a self-financing road tunnel. The criterion is that the toll paid by the vehicles over the life of the project must be sufficient to cover both the initial capital and the other costs which will be incurred over the project's life. Determine a suitable charge on each vehicle passing through the tunnel using the following estimated figures based on 1996 prices. 1. Capital cost Construction cost Land cost Professional fees 2. Annual OMR cost 3. Annual administration cost 4. Replacement cost of autopay ticket machine 5. Estimated annual traffic flow 6. Life of project 7. Required rate of return (real) 8. Estimated inflation rate in the next 20 years $100,000,000 $2,500,000 $5,000,000 $1,000,000 every 5 years 10,000 vehicles per day in the first five years; the growth rate of traffic flow is 30% every 5 years 20 years 12% 10% p.a. (average)
Could someone help me with their input on this question please. What is the difference between a fixed and variable cost associated with owning a vehicle? How should a person prepare to buy a car?
Use the information provided to answer the questions.Use the information provided below to calculate the following. Where applicable, use the presentvalue tables provided in APPENDICES 1 and 2 that appear after QUESTION 5. QUESTION) Calculate the Accounting Rate of Return (on average investment) of Project B (expressed to twodecimal places). INFORMATION Zeda Enterprises has the option to invest in machinery in projects A and B but finance is only available to invest inone of them. You are given the following projected data:Project A Project BInitial cost R300 000 R300 000Scrap value R40 000 0Depreciation per year R52 000 R60 000Net profitYear 1 R20 000Year 2 R30 000Year 3 R50 000Year 4 R60 000Year 5 R10 000Net cash flowsYear 1 R90 000Year 2 R90 000Year 3 R90 000Year 4 R90 000Year 5 R90 000 Additional informationThe discount rate used by the company is 12%. Transcribed Image Text:Number of Periods 1 2 3 4 5 6 7 8 m 10 11 12 13 14 15 1% 2% 0.9901 0.9804 0.9709 3% 3.9020 3.8077…
Gas-electric (so-called hybrid) vehicles save on gasoline consumption by shutting off the vehicle’s engine while idling, giving the vehicle a boost of electric power during acceleration, and capturing electrical energy while braking. In addition to environmental benefits, the primary monetary benefit to the owner is reduced fuel cost as a result of improved gas mileage. The trade-off, however, is that the purchase price of the hybrid vehicle is higher than that of a standard gasoline-only fueled vehicle. Consider a hybrid vehicle with a sticker price of $31,500. This vehicle willaverage 30 miles per gallon of gasoline. A tax credit∗ of $1,500 for the hybrid vehicle effectively reduces its sticker price to $30,000. A comparably equipped gasoline-only vehicle will cost $28,000 and will average 25 miles per gallon of gasoline. Assuming an interest rate of 3% per year and a study period of five years, find the breakeven cost of gasoline ($/gal) if the vehicle will be driven 18,000 miles…

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