Please solve on EXCEL and share the tables!Answers: B-A 13.7% select A, C-B 12.4% select B,D-B 14.3% select DThe New England Soap Company is considering adding some processing equipment to the plant to aid in the removal of impurities from some raw materials. By adding the processing equipment, the firm can purchase lower-grade raw material at reducedcost and upgrade it for use in its products.Four different pieces of processing equipment with 15-year lives are being oonsidered:DInitial investment$8.500 S18,500 26,500 $30,000Annual saving in materials costs 3.500 6,000 7,400 9,000Anmal operating cost2.100 3,000 3,200 4.100The company cam obtain a 13% amual retum on its investment in other projects and is willing to invest money on the processing equipment only as long as it can obtain 14% anual retum cn each inerement of money invested. Which one, if any, of thealternatives should be selected? Use a challenger-defender rate of return analysis.

Defender: The maintenance costs per unit time of the presently owned equipment's are called as…

Please solve on EXCEL and share the tables! Answers: B-A 13.7% select A, C-B 12.4% select B, D-B 14.3% select D The New Englaad Soap Company is conasidering adding some processing equipument to the plant to aid in the removal of impurities from some raw materials. By adding the processing equipment, the firm can purchase lower-grade raw material at reduced cost and upgrade it for use in its products. Four different pieces of processing equipment with 15-year lives are being considered: B D Initial investment s8.500 S18.500. 026,500 $30.000 Annual saving in materials costs 3.500 6.000 7,400 9.000 Anmal operating cost 2.100 3.000 3,200 4.100 The comparny cam obtain a 13% amual returi cn its investment in oter projects and is willing to invest money alternatives should be selected? Use a challenger-defender rate of return analysis. the processing equiprment only as long as it cam ebtain 14% mmual retuna on cach inereament of money invested. Which one, if any, of the

Please solve on EXCEL and share the tables! Answers: B-A 13.7% select A, C-B 12.4% select B, D-B 14.3% select D The New Englaad Soap Company is conasidering adding some processing equipument to the plant to aid in the removal of impurities from some raw materials. By adding the processing equipment, the firm can purchase lower-grade raw material at reduced cost and upgrade it for use in its products. Four different pieces of processing equipment with 15-year lives are being considered: B D Initial investment s8.500 S18.500. 026,500 $30.000 Annual saving in materials costs 3.500 6.000 7,400 9.000 Anmal operating cost 2.100 3.000 3,200 4.100 The comparny cam obtain a 13% amual returi cn its investment in oter projects and is willing to invest money alternatives should be selected? Use a challenger-defender rate of return analysis. the processing equiprment only as long as it cam ebtain 14% mmual retuna on cach inereament of money invested. Which one, if any, of the

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3. Consider an individual whose income stream is (200,120) in a situation where he is faced with the choice of 3 economically independent projects, alpha, beta and gamma. The market interest rate is 50%. The cash flows for the three projects are as follows: Project Co C₁ Alpha Beta -20 24 Gamma 10 -12 a) Which projects (if any) would the individual invest in? b) How much would he end up consuming in time 0? c) How much would he end up consuming in time 1? d) Show that the individual is better off with the investments than if he just consumed according to his income pattern. -12 30
2- A rough rule of thumb for the chemical industry is that OMR 1 of annual sales required OMR 2 of fixed capital investment. In a chemical processing plant where this rule applies, the total capital investment is OMR 3200000 and the working capital is 18% of the total capital investment. The annual net total product cost amounts to 1500000 OMR. If the income tax rates on gross earnings total 21%, determine the following: (a) Percent of total capital investment returned annually as gross earning. (b) Percent of total capital investment returned annually as net profit.
NPV Calculate the net present value (NPV) for the following 12-year projects. on the acceptability of each. Assume that the firm has a cost of capital of 7%. a. Initial investment is $1,000,000; cash inflows are $ 160,000 per Year b. Initial investment is $2,500,000; cash inflows are $320,000 per Year Using Excel to answer. Show all Formulas
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
(see attached)) What is the Present Discounted Value? Please show the steps. I thought it was 12.26 but when i checked online, multiple people said that was wrong on Chegg.
12-A customer has asked your company to prepare a bid on supplying 1000 units of a new product. Production will be in batches of 100 units. You estimate that costs for the first batch of 100 units will average OMR 200 a unit. You also expect that a 90% learning curve will apply to the cumulative labour cost on this contract. Estimate the incremental labour cost of extending the production run to produce an additional 1000 units. a. None of the given options b. OMR 52490 c. OMR 55500 d. OMR 60000
The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash Accounts receivable Inventory Buildings and equipment, net Accounts payable Common shares Retained earnings a. The gross margin is 25% of sales. b. Actual and budgeted sales data are as follows: March (actual) April May June $50,000 $60,000 $72,000 $ 8,000 20,000 36,000 120,000 21,750 150,000 12,250 July $90,000 $48,000 c. Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are the result of March credit sales. d. Each month's ending inventory should equal 80% of the following month's budgeted cost of goods sold. e. One-half of a month's inventory purchases is paid for in the month of purchase; the other one-half is paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory. f. Monthly expenses are as follows:…
Company B is a retailer of mobile phones in Australia that works 250 days in a year. The manager would like you to determine a minimum-cost inventory plan for an upcoming mobile phone to be launched in the market. They have collected the following information: • Annual demand: 700 phones • Phone cost: $1,793 each• Phone RRP: $1,949 each• Net weight: 169 g each • Tare weight: 61 g each• Annual inventory holding cost: 30%• Cost per order to replenish inventory: $82• Annual in-transit holding cost: 10%• Freight rate (per kg): $8.10• Freight rate (per consignment): $301.50 (i.e. handling fee, dangerous good fee, anlithium battery fee)• Time to process order for freight: 1 days • Freight transit time: 4 days Solve this problem using a non-linear programming (NLP) model and your model should generate only integer results for economic order quantity and the number of orders. 1. Economic order quantity for the phone in units and in kg 2. The total cost for purchasing the phones3. The total…
Q. 2
A new drill press costs $12,000. It would potentially produce an additional $4,000 of revenue per year and have an operating expense of $1,200. What is the PW of the drill press if the new equipment is expected to last 8 years and i = 10%? Select one: a. $15,534 b. $19,345 c. $14,938 d. $21,735
a) Define NPV (Net Present Value), Payback and IRR (Internal rate of Return). b) Calculate NPV of the following projects. Discount rate is 10%. c) Which project should be chosen and why? Project Mils proj A Cash flows £ proj B Year 0 Year 1 -10 2 Project Mils proj C Cash flows £ Year 0 Year 1 -10 7 Cash flows £ Project Mils Year 0 -8 Year 1 3 Year 2 Year 2 Year 2 5 5 3 Year 3 7 Year 3 2 Year 3 3