!Required informationA process for producing the mosquito repellant Deet has an initial investment of $165,000 with annual costs of $43,000.Income is expected to be $90,000 per year.What is the annual breakeven production quantity for both payback periods if net profit, that is, income minus cost, is $10 per gallon?(Consider the rounded values of years calculated in part a. Also, round your answer to the nearest integer.)When i = 0%, the annual breakeven production quantity is determined to beWhen i = 12%, the annual breakeven production quantity is determined to begallons per year.gallons per year.

As per the given information:Initial investment - $165,000Annual costs - $43,000Income - $93,000

Answered: Required information A process for…

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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The following material costs are anticipated over a 5-year period: $9,000, $11,000, $14,000, $18,000, and $23,000. It is estimated that a 4% inflation rate will apply over the time period in question. The material costs given above are expressed in then-current dollars. The time value of money, excluding inflation, is estimated to be 7%. Determine the present worth equivalent for material cost using the following: a. Then-current costs. b. Constant-worth costs.
Operating costs are an important criteria when selecting what machinery would be the best choice for a company. What is the EUAW of this investment that costs $53,700, has annual benefits of $8,162/year, annual costs of $1,540/year, and a disposal cost of $4,800 at the end of its useful life? It has a useful life of 14 years. Use a 15% MARR.
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the process for producing a fruit-tree pesticide has a first cost of $200,000 with annual costs of $50,000 and revenue of $90,000 per year. What is the payback period in years?
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The following three investment opportunities are available. The returns for each investment for each year vary, but the first cost of each is $20,000. Based on a future worth analysis, which investment is preferred? MARR is 9%/year.
View Policies Current Attempt in Progress Cecil's Manufacturing is considering producing a new product. The sales price would be $10.65 per unit. The cost of the equipment is $86,000. Operating and maintenance costs are expected to be $4,100 annually. Based on a 7-year planning horizon and a MARR of units 12%, determine the number of units that must be sold annually to achieve breakeven. Carry all interim calculations to 5 decimal places and then round your final answer up to the nearest unit. The tolerance is ±5.
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Using the annual cost data below, if industry considering producing 7,500 units per year, determine which project incurs less cost. v) Project-A 355,000 Description Capital (RO) Life (years) Capacity (units per year) Salaries per year (RO) Other fixed costs per year (RO) Wages per year (RO) Cost of materials per year (RO) Other variable costs per year (RO) Scrap value at the end of the year (RO) Cost of capital (%) Project-B 450,200 15 15 10,000 45,000 40,000 70,000 229,000 35,000 31,700 15 12,000 50,000 85,000 80,000 279,000 40,000 43,700 15
A marketing company intends to 0 distribute a new product. It is expected to produce net returns of $17,000 per year for the first four yoars and $13,000 per year for the following throe yoars Tha faciltios roquirodto distribute the product will cost $70,000 with a disposal value of $9,000 after seven years. The facilities will require a major facelift costing $10,000 each after three years and after five years. If the companyrequires a return on investment of 10%, should the company distribute the new product?

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