Q3:- An investor wants to establish a cement plant, so if the data for the plant is as below, and the interest is annual Vehicle (100) grandfather - 1. How long does it take for the investor to recover his money? 2. How many units are produced to reach the break-even point? From year 10 9. 8. 5 4 3. Operating period (year) to year 40 I The number of units produced 2.4 2.4 2.4 2.4 2.4 2.1 1.8 1.5 1.2 0.9 (million tons annually) 309 Total invested capital (million dollars) 27 Production cost (in dollars) 7725000 Annual costs of depreciation (dollars per year) 830000 Annual operating costs (dollars per year) 32 Selling price (dollars per ton) 8. Interest Rate (%)
Q3:- An investor wants to establish a cement plant, so if the data for the plant is as below, and the interest is annual Vehicle (100) grandfather - 1. How long does it take for the investor to recover his money? 2. How many units are produced to reach the break-even point? From year 10 9. 8. 5 4 3. Operating period (year) to year 40 I The number of units produced 2.4 2.4 2.4 2.4 2.4 2.1 1.8 1.5 1.2 0.9 (million tons annually) 309 Total invested capital (million dollars) 27 Production cost (in dollars) 7725000 Annual costs of depreciation (dollars per year) 830000 Annual operating costs (dollars per year) 32 Selling price (dollars per ton) 8. Interest Rate (%)
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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Transcribed Image Text:Q3:- An investor wants to establish a cement plant,
if the data for the plant is as below, and the interest is annual
Vehicle (100) grandfather -
1. How long does it take for the investor to recover his
money? 2. How many units are produced to reach the break-even point?
From year 10
6.
4.
3.
Operating period (year)
to year 40
The number of units produced
2.4
2.4
2.4
2.4 2.4
2.1
1.8
1.5
1.2
0.9
(million tons annually)
309
Total invested capital (million dollars)
27
Production cost (in dollars)
7725000
Annual costs of depreciation (dollars per year)
830000
Annual operating costs (dollars per year)
32
Selling price (dollars per ton)
8.
Interest Rate (%)
8.
91
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