Switching to powder coating technology will reduce theemission of volatile organic carbons (VOCs) for a firm'sproduction process. The initial cost is $200,000 withannual costs of $50,000 and revenues of $90,000 in thefirst year. Revenues are projected to increase by $2,000annually after Year 1. The salvage value 10 years fromnow is projected to be $30,000. What rate of returnwill the firm make on this investment?

Here's how to calculate the rate of return (ROR) for the powder coating technology investment:1.…

Answered: Switching to powder coating technology…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Azero coupon bond will be worth $11,000 when it matures and is redeemed ater 13 years How much would an investor be wiling to pay now for this bond ifa 3% per year yield is desed Click the icon to view the interest and annuity table for dacrete compounding when /3% per yea The current worth of the bond is Round to the nearest dolar)
Engineering Economics
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Give an example about a project that we need to use incremental ROR analysis. For the cash flows shown below, determine (a) the future worth in year 6 and (b) the equivalent Annual value for years 0 through 12. (Use gradient and annual equivalent series formulas in calculations) Cash Flow $/yr Year 0 1-2 3-5 6 7 8 9 10 11-12 -50000 6000 6000 5500 6000 6500 7000 7500 8000 Interest ratio Monthly effective interest rate (2,1)% (10)% per year, compounded quarterly Effective interest rate for 24 months (13)%
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ENGINEERING ECONOMICSMenchie bought his brother a laptop 5 years ago which has a cost of around 25,000PhP. The laptop’s life span willlast until 5 years. She has a friend which is a computer technician who advised her that the laptop’s life span couldextend until 10 years if she could spend semi-annual maintenance of 100Php with a 10Php increase rate startingthe next period of maintenance inspection. How much is the total future cost assuming that the money will havea rate of 2% compounded semi-annually if she decided to enjoy using her laptop beyond the expected life spanupon purchasing?
A certain property is being sold and the owner receives two bids. The first bidder offered to pay P400000 each year for 5 years and the payment is to be made at the beginning of each year. The second bidder offered to pay P240000 fest ysar, P350000 the second year, and P540000 each year for the next 3 years, all payments to be made at the beginning of each ysar, If money is worth 20% compounded annually, which bid should the owner of the property accept?
Che-Che bought his brother a laptop 5 years ago which has a cost of around 25,000PhP. The laptop’s life span will last until 5 years. She has a friend which is a computer technician who advised her that the laptop’s life span could extend until 10 years if she could spend semi-annual maintenance of 100Php with a 10Php increase rate starting the next period of maintenance inspection. How much is the total future cost assuming that the money will have a rate of 2% compounded semi-annually if she decided to enjoy using her laptop beyond the expected life span upon purchasing? Please show clear written solution (because sometimes when the solution is typed here, the solution becomes confusing and hard to read) and cash flow diagram. I give my appreciation. In advance :)

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