Question 25 A replacement study showed that the components of the total costs of an asset are as follows: 24 What is the economic life of an asset? O a. 9 years Total Costs Capital costs Ob.7 years O. 8 years Od.7.4 years Operating Costs 01 2 3 45 6 7 89 10 11 12 Years Cost per period

Question 25 A replacement study showed that the components of the total costs of an asset are as follows: 24 What is the economic life of an asset? O a. 9 years Total Costs Capital costs Ob.7 years O. 8 years Od.7.4 years Operating Costs 01 2 3 45 6 7 89 10 11 12 Years Cost per period

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A university is trying to determine how much it should charge for tickets to basketball games to help offset the expenses of the new arena. The cost to build the arena including labor, materials. e tc. was $92 million. Each year the maintenance cost is expected to increase by 5% as the building gets older. 1l1e maintenance cost for the first year is $150.000. Utilities arc expected to average about $200.000 per year and labor costs $300,000. The average attendance at basketball games over the year is expected to be J00.000 people (or 100.000 tickets sold to events). Assuming the arena has no other source of income besides regular ticket sales (not including student tickets) for basketball games, what should the university charge so that it can recover at least a 6% cost of borrowing on its investment? ll1c university expects the arena to be used for 40 years and 10 have no appreciable salvage value.
2. A certain company is considering two types of machine for its operation. The data are as follows: Machine A First cost P150,000 Life 4 yrs Salvage value P15,000 Annual operating cost P48,000 Annual taxes P4,200 Annual repairs P7,200 Machine B First cost P200,000 Life 8 yrs P10,000 Salvage value Annual operating cost P32,000 Annual taxes P7,200 Annual repairs P4,200 If money is worth 12% compounded annually, compute the difference of the present worth of the two machines.
Question 5 Cost data of a machine is shown in the following table with an annual rate of 12%. Calculate annual worth at end of year 2 M&O cost Retention Yr. Market Value per year O First Cost) 55,000 1 35,000 45.000 2 20,000 47.500 3 15,000 50.000 4 2.000 53.500 O 6a256 O 69209 O R476 O 67.854 Question 6 Use same cost data from last question and 12% annual rate of return. Calculate annual worth at end of Year 3. O 66.765 O 64332 O 67.428 O 66256 D Question 7 Use the same cost data of the machine from the above 2 questions and 12% interest rate per year. What is the ESL of this machine? 01 04
Please solve in 30 min i will give you a upvote PROBLEM 2 Karim Inc. calculated the annual cost of owning an asset as follows. EUAC Annual EUAC Replacement Capital Repair Repair Year Costs Costs Costs $1,400 $1,100 1 2 $450 $200 3 $900 $600 $350 4 $800 $800 $400 $700 $1,000 $600 $1,300 $500 $1,600 $450 $600 7 $750 a. When should the company replace the equipment? b. If Karim Inc currently replaces its equipment every year to avoid increasing annual repair costs, how much can the company save annually?
1. A certain company is considering two types of machine for its operation. The data are as follows: Machine A First cost P150,000 Life 4 yrs Salvage value P15,000 Annual operating cost P48,000 Annual taxes P4,200 Annual repairs P7,200 Machine B First cost P200,000 Life 8 yrs P10,000 Salvage value Annual operating cost P32,000 Annual taxes P7,200 Annual repairs P4,200 If money is worth 12% compounded annually, compute the difference of the annual worth of the two machines.
The following are data from a production, calculate; The Break-even point in terms of sales value and in . The production demand is at 20,000 units. What is the cw1ent production profit? If the management decides to lower dow11its selling price by 50% given the same demand, will this be a sound decision? Justify. Monthly Fixed Factory Overhead Cost = P600,000 Monthly Fixed Selling Overhead Cost = Pl20,000 Va1iable Manufacturing Cost per Unit = P220 Va1iable Selling Cost per Unit = P30 Variable Distribution Cost per Units = P50 Selling Price per limit = P400
Lamar Company is studying a project that would have an eight-vear life and require a S1,600,000 invest- ment in equipment. At the end of eight vears, the project would terminate and the equipment would have no salvage value. The project would provide net income ench year as follows: Sales... Less: Variable expenses. $3,000,000 1.800,000 .... Contribution margin. Less: Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs.... . 1,200,000 $700,000 Amortization 200,000 Total fixed expenses. 900,000 Net income... $ 300,000 The company's discount rate is 18%. Required: 1. Compute the net annual cash inflow from the project. 2. Compute the project's net present value. Is the project acceptable? 3. Compute the project's payback period. If the company requires a maximum payback of the the project acceptable? 4. Compute the project's simple rate of return.
Using the figure above, what is profit/loss for the firm?
3. Make an economic analysis to determine which of the following two machines capable of performing the same task in a given amount of time, should be purchased. The minimum return is 8%. Machine A Machine B First Cost P10,000 6 years P20,000 14 years Estimated Life Salvage Value Annual maintenance P6,000 P300 P250 Basing on annual cost, using straight line method of computing depreciation, determine which machine you would choose and how much is the difference in its annual cost? Hint: Compute the Annual Cost of Machine A and Machine B then compare the costs, get the difference and recommend.
Find the Value Of the mode from He tollowing data class O-10 10-20 20-30 30-40 40-50 50- 60 60-70 70-80 809090-100 Frequence 8. 14 16 12 20 22 28 14 10 17 21
1.A company have to choose the type of electrical generator to sustain its production operation in case of power failures. Type A Type B First Cost P200,000 P300,000 Annual Operations Cost P 32,000 P 24,000 Annual Labor Cost P 50,000 P 32,000 Insurance & Taxes 3% of First Cost 3% of First Cost Payroll taxes 4% of first Cost 4% of first Cost Estimated Life 10 yrs 10 yrs Note: All the Types of Genset will depreciate. If the minimum required rate of return is 15%, which type of genset should be selected? Using Present Worth Method, which type should be selected?
Kontrol paneli > Derslerim > 2020-2021 Güz Dönemi > İŞLETME FAKÜLTESİ > İŞLETME > 2021G-ITB101-1252178 > ITB 101 - Final Exam > ITB 10 曲 Kontrol paneli Site ana sayfası Takvim Nişanlar Tüm dersler Course dashboard Soru 17 The Farley Farm, a dairy company, has total costs of $15,000 and total variable costs of $2,000. The Farley Farm's total fixed costs are Henüz cevaplanmadı 4 üzerinden Lütfen birini seçin: işaretlenmiş O A. indeterminate because the firm's output level is not known. P Soruyu işaretle O B. SO O C$ 15000 O D.$ 13000 O E$ 17000 ÖNCEKİ SAYFA SONRAKİ SAYFA O Aramak için buraya yazın