re is a continuing requirement for stand by electrical power at a public utilit ice facility. Alternative A involves an initial cost of $72,000, a 3-year useful life an annual cost of $2,200 the first year and increasing S$300 per year thereafte a net salvage value of $8,400 at the end of the useful life. Alternative B has a al cost of $90,000, a six-year useful life, and annual cost of 2,100 and a ne age value of S13,000. The current interest rate is 10% annually. Wha rnative are you going to recommend if you use the repeatability (stud iod is 6 years) and co terminated (study period is 3 years- & = 10% amptions?

re is a continuing requirement for stand by electrical power at a public utilit ice facility. Alternative A involves an initial cost of $72,000, a 3-year useful life an annual cost of $2,200 the first year and increasing S$300 per year thereafte a net salvage value of $8,400 at the end of the useful life. Alternative B has a al cost of $90,000, a six-year useful life, and annual cost of 2,100 and a ne age value of S13,000. The current interest rate is 10% annually. Wha rnative are you going to recommend if you use the repeatability (stud iod is 6 years) and co terminated (study period is 3 years- & = 10% amptions?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

accounting profit by Weplit costs wn $160,000 and implick costs are $72,000, economic profit is
Calculate total profit when total revenue is $9000 and the total cost is $8700
Total cost and output are $3000 and 60 respectively Calculate average cost
Calculate Total revenue is per unit price is $10 and output is 320
If total revenue is $550 and price per unit is $55 What is the value of output sold?
Bags/Participants Fixed Cost Variable Cost Total Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 200 $1,700 $1,200 $2,900 300 $1,700 $2,700 $4,400 400 $1,700 $5,200 $6,900 500 $1,700 $9,000 $10,700 600 $1,700 $15,000 $16,700 700 $1,700 $23,800 $25,500 800 $1,700 $36,800 $38,500 900 $1,700 $55,800 $57,500 1,000 $1,700 $83,000 $84,700 Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order? At what quantity of bags will profits be maximized? A Use the profit maximizing rule, MR ≥ MC, buy 300 bags. B Use the profit maximizing rule, MR ≥ MC, buy 200 bags. C Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 300. D Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 200.
Is Fuel a variable, fixed or overhead cost?
Find profit level of total revenue is $2490 and total cost is $2100
A small factory produces a small toy with a fixed cost of S10,000month. If the factory manager wants to have a profit of $2 per unit, the revenue is $15unit and variable cost is $5/unit what is quantity to achieve this profit?
State the law if Diminishing Returns
FC VC TC MC AFC AVC ATC 1 12 2 100 4 46 30 11 6.
Calculate the value of Average revenue for 4 units sold when the total revenue is $100