Low-energy lightbulbs typically cost $3.65, have a life of nine years, and use about $1.75 of electricity a year. Conventional lightbulbs are cheaper to buy, for they cost only $.53. On the other hand, they last only about a year and use about $6.75 of energy. a. If the real discount rate is 4%, what is the equivalent annual cost of the two products? (Do not round intermediate calculations. Enter your answers as a positive value rounded to 2 decimal places.) Equivalent Annual Cost Low-energy lightbulbs Conventional lightbulbs

Low-energy lightbulbs typically cost $3.65, have a life of nine years, and use about $1.75 of electricity a year. Conventional lightbulbs are cheaper to buy, for they cost only $.53. On the other hand, they last only about a year and use about $6.75 of energy. a. If the real discount rate is 4%, what is the equivalent annual cost of the two products? (Do not round intermediate calculations. Enter your answers as a positive value rounded to 2 decimal places.) Equivalent Annual Cost Low-energy lightbulbs Conventional lightbulbs

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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(2.3) You are part of a sustainability consulting team tasked with evaluating the feasibility of retrofitting an old office building to achieve net-zero energy status. The goal is to reduce the building's carbon footprint to zero by enhancing its energy efficiency and installing renewable energy systems. Your task is to calculate the Benefit-Cost Ratio (BCR) of this retrofitting project to assess its financial viability. You know the following information about this project: Total cost of retrofitting measures: $800,000, including: High-efficiency HVAC system: $250,000 • Window upgrades: $150,000 Thermal insulation: $200,000 Solar PV system: $200,000 Grants and subsidies for green retrofitting: $100,000 Expected annual energy cost savings: $75,000 Additional annual savings (maintenance, etc.): $20,000 Expected lifespan of retrofitting measures: 25 years Time value of money rate: 7% Show your calculation process about BCR for the cost analysis.
you are the mayor of the smalltown of wasilla and a landowner has offered to sell you 1,000 hectares of woodland for $2,000,000. YOu are very tempted because of the wildlife which live there(such a moose) as well as the recreational value to your constituents . you look at the financial times and see that if you borrow money for this project, the interest rate will be 5% per annum, and so conclude the discount rate you should use 5%. your parks department estimates that annual recreational and environmental benefits will be $100,000 a year. a) looking only at the next 50 years, is buying the woodland a good idea? b) what is the maximum amount you would be willing to pay the landowner to lease the land for 50 years? c)How would your answers to a and b change if the recreational and environmnetal benefits increase by 3% per year, reflecting the fact that wasilla is growing, not only in population but in income of the population?
True/False: Explain your Answer. Highway engineers want to improve a dangerous stretch of highway. They expect that it will reduce the risk of someone dying in anaccident from 4 percent to 1 percent over the life of the highway. If a human life is worth $4 million, then the project is worth doing as long as it does not cost more than S67,200.
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H1. Mimi's is developing a Fiery Habanero muffin, which will NOT compete with anything Mimi's currently offers. Unit contribution margin for the new Fiery Habanero muffin would be $3.38. Contribution margin for the company's Banana Nut muffin is $3.25 per unit. Mimi's expects to sell 45,000 units of the new muffin, if it is introduced. Compute weighted contribution margin for the new muffin. (Rounding: penny.)
Imagine you are the owner of a downtown Laredo building that you lease out for a yearly amount of $ 45,000 over a span of five years. Assume that the explicit expenses for maintaining the building are $ 20,000, and an additional implicit cost of $15,000 exists. All earnings and costs occur at the conclusion of each year. Suppose the interest rate is 7.5 percent, Determine the present value for both the stream of: (i) your accounting profits. Show your steps. (ii) economic profits. Show your steps
1.5
Suppose you are considering a project has an initial cost of $750 that has an ongoing benefit of $275. Further, there is an ongoing cost that is equal to $90, which increases by $10 each year. Assume the project lasts 6 years. If the appropriate discount rate is 5.5%. Calculate: a) the Net Present Value = $ 57.07 b) the Benefit Cost Ratio = c) should the project be accepted or rejected? Explain your answer using the information from part a) and b). Answer = (accept/reject) Provide your answers to two decimal places. Do not include any commas (,) "$" or
Suppose that the price of a barrel of oil is $80 and interest rates remain at 8%. If a new technology is implemented in one of the wells and it costs $3,000,000. Calculated the estimated "profit" from outfitting one of our wells with this new technology.
AVC = 10-0.03q+0.00005q^2 ATC = 10-0.03q+0.00005q^2 +100/q and MC = 10-0.06q+0.00015q^2 Answer the following questions in EXCEL:1 At what value of q is AVC at its minimum? (Hint: The easiest way tocalculate this value is to solve AVC - MC = 0 for q.)2 At the above output level what value does AVC take?3 If the forecasted price of the firm's output is $10 per unit:a How much output will the firm produce in the short run?b How much profit (loss) will the firm earn)?4 If the forecasted price is $7 per unit:a How much output will the firm produce in the short run? (Keep only2 decimals)b How much profit (loss) will the firm earn)? (Keep only 2 decimals)
2. Thomas is considering buying an artificial Christmas tree. The tree costs $285 and is expected to last six years. The alternative is to keep purchasing natural trees, which currently cost $35 (Christmas year 0) and are expected to increase $5 in price each of the subsequent years, e.g. +$40, +$45, +$50, etc. Note: Draw two cash flow diagrams for this problem. a. What decision would you advise regarding the two options? b. What additional information may be useful or necessary in order to make a decision? c. Which option is the better choice? Why?
If the profit function for selling smart phone screen magnifier is -4500p2 + 561500p – 11898000, what is the maximum profit that can be expected from selling smart phone screen magnifiers? Question 1 options: $ 0, no profit $ 5,617,681 $ 1,717,764 -$ 8,004,171