It is a reflection of the value place on a product or service.utilitynecessitydemandluxuryD 21.The capital recovery amount of a project is:uniform annual cost of capital investedinterest on invested capitalloss in value of the assetpercent of the capital recovered 11.The present worth method takes into accountthe cash flow over the life of the project but not the time value of money.the cash flow over the life of the project and the time value of money.the time value of money but not the cash flow over the life of the project.neither the cash flow over the life of the project nor the time value of money.D 12.Depreciation arises because of:20.For a project, benefit-cost ratio is equal to one, thenIRR will be greater than discount rateIRR will be greater than oneIRR will be equal to discount rateIRR will be less than discount rate

Definitions of all the options are given below: 1. Utility - Utility is the satisfaction received or…

Answered: t is a reflection of the value place on…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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You need to determine whether a project is profitable or not in a long run. Based on the data given, which of theseprojects will be profitable according to engineering economy methods?a. θ = 3 yrs., Net Value: 0b. Accumulated (without interest) net values of the revenues, expenses and investments after 5 years is +300.c. Accumulated (without interest) net values of the revenues, expenses and investments after 4 years is +100.d. θ = 6 yrs., Net Value: +400
A rural community/company is considering an investment in a cottage industry for which the net cash flows have been estimated as follows: i) What is the NPV if the discount rate is 10%? ii) Using discount rates of 10% and 14% calculate the IRR? iii) Is this project acceptable?
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?
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During a a company history of cash flow: Y1, Income $6850: costs $19333, Y2 $6404; costs $14498 Y3 income $17620; costs $2126 with a hurdle rate of 0.15, what is the NPV at year 3? Please solve clearly ASAP.
14. Two projects are under consideration. Year A B 0 ($3,400) ($4,500) 1 $2,750 $1,000 2 $2,750 $2,000 3 $2,750 $5,000 Which project should be selected if the simple payback period method is used to make the determination? Show your work.
Physical Units (pennants) 1,050 Work in process, November 1ª Started during November ? Good units completed and transferred out during November 8,900 Normal spoilage Abnormal spoilage 120 40 1,800 Work in process, November 30b Total costs added during November a Degree of completion: direct materials, 100%; conversion costs, 50%. bDegree of completion: direct materials, 100%; conversion costs, 15%. Direct Conversion Costs Materials $1,032 $740 $12,000 $27,250 Flow of Production Completed and transferred out during current period Normal spoilage Abnormal spoilage Work in process, ending Work done to date Equivalent Units Direct Conversion Materials Costs 8,900 120 40 1,800 10,860 8,900 120 40 270 9,330
What impact does the market for intangible property such as stocks and bonds have on the market for real estate? Why would a real estate investor pay attention to what is happening in these markets? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Question 7 A factory is considering partially automating one of its production processes, details can be found in the summary table below (all dollars are constant and have the value of today): Description/Data S 1,500,000 6 years S 500,000 Item Investment Project life Salvage value CCA rate Annual savings 30% S 1,000,000 $ 200,000 per year S 125,000 per year S 75,000 per year Labour Annual expenses Material Overhead Marginal tax rate Real interest rate 40% 16% AJ Ignoring for now any effect of inflation, what's the after-tax NPW ? B] If the general inflation rate during the next 6 year is expected be 4% annually, sales and operating costs are to be increased accordingly. What would be the NPW due to inflation? C] How did the NPW change? Why?
Current assets 10,000 dollars; Stock 2000 dollars; Current Liabilities $ 4000; The quick ratio equals Select one: a. 6000 b. 3 c. 2 d. 2.5
Please write all the solution on a paper. So that i can understand
A proposed project has the following costs and benefits. Using linear interpolation, the project’s discounted payback period (use i=10%) is _____________. Year Costs Benefits 0 $4,000 1 $1,200 2 $1,200 3 1,000 4 1,000 5 3,000 6 2,000 A. 6.35 years B. 5.82 years C. 4.24 years D. 3.37 years

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