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 5 4 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 (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 (%) 69 8.
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 5 4 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 (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 (%) 69 8.
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
Related questions
Question
i need the answer quickly
Transcribed Image Text: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
5
4
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 (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 (%)
6
91
Expert Solution
Given,
Investment = 309,000,000
Production cost 27
Annual costs of depreciation = 7,725,000
Annual operating costs =830,000
Selling Price =32
Interest rate= 8%
Step by step
Solved in 3 steps with 4 images
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education