The cost of a material was $2.00 per ounce 5 years ago. If prices have increased (inflated) at an average rate of 4% per year, what is the cost per ounce now? (a) $2.04 (b) $2.08 (c) $2.43 (d) $8.00?
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The cost of a material was $2.00 per ounce 5 years ago. If prices have increased (inflated) at an average rate of 4% per year, what is the cost per ounce now? (a) $2.04 (b) $2.08 (c) $2.43 (d) $8.00?
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- The average seling price of a new vehicle in the United States last year was $64, 470. If the average price ten years earlier was $54, 700, what was the annual increase/decrease in the selling price over this time period?You are preparing to produce some goods for sale. You will sell them in one year and you will incur costs of $86,000 immediately. If your cost of capital is 6.6%, what is the minimum dollar amount you need to sell the goods for in order for this to be a non-negative NPV?2. A piece of equipment now is use at a plant has a market value of $35,000. This market value is expected to decline by 30% per period (from the previous period) until it reaches zero at the end of period 5. The forecasted operating and repair cost of the equipment for the next period is $20,000 and this is expected to grow at a rate of 25% per period. Applying an interest rate of 1 1%, answer the questions below. a. What is the economic service life? b. What is the lowest period equivalent cost for keeping the equipment in operation for the economic service life?
- 10. The cost of 1,000 cubic feet of natural gas has increased from 360 in 2000 to 750 in 2006. What compounded annual increase in cost is this? How does the increase in the cost of natural gas compare to a 3% annual rate of inflation during the same period of time?A firm is considering a new inventory system that will cost $120,000. The system is expected to generate positive cash flows over the next four years in the amounts of $35,000 in year 1, $55,000 in year 2, $65,000 in year 3, and $40,000 in year 4. The firm’s required rate of return is 9%. What is the payback period of this project? 1.95 years 2.46 years 2.99 years 3.10 years Based on the information from Question 47. What is the net present value (NPV) of the project? $28,830.29 $30,929.26 $36,931.43 $39,905.28 Based on the information from Question 47, what is the internal rate of return (IRR) of this project? 14.03% 17.56% 19.26% 21.78% Based on the information from Question 47, what is the profitability index (PI) of this project? 0.87 1.11 1.31 1.83.A CNC mill was purchased 4 years ago for $50,000. The current market value is $26,000, which will decline as follows over the next 5 years: $20,000, $16,250, $ 14,000, $12,000, and $8500. The O&M costs are estimated to be $6000 this year. These costs are expected to increase by $2000 per year starting year 2. MARR = 10% The marginal cost for defender in year 2 Group of answer choices $13,750 $ is 14,600 $ 13,875 $15,400 $12,400
- Suppose natural gas experiences a 1.8% increase per year in real terms over the foreseeable future. The cost of a 1,000 cubic feet of natural gas is now $7.50. Solve, a. What will be the cost in real terms of 1,000 cubic feet of natural gas in 22 years? b. If the general price inflation rate (e.g., the CPI) for the next 22 years is expected to average 3.2% per year, what will a 1,000 cubic feet of natural gas cost in actual dollars 22 years from now?You are analyzing a property that popped up on CREXI. Real estate taxes and management services cost 42,362 and 31,563, respectfully. Other expenses are 15,369. If your company’s required return is 10%, what must the average annual rent be over the next five years for you to purchase the property at $400,000 and obtain that 10%? Expenses grow at 2.5% per year. A. 189,500 B. 198,400 C. 201,300 D. 192,700 E. 209,500A barrel of oil has a current cost of $85barrel. If general infation is 2.7%year and oil has a real escalation rate of 6%year, what will a barrel of ol cost in actual dollars five years from now? Ol will cost in actual dolars five years from now $ barrel. (Round to the nearest cent)