When capital recovery (CR) is calculated, the annual operating maintenance (AOC) is:Select one:O a converted into PW.O b. included in CROcnone of the answers.O d. not included in CR.An important difference between evaluating ME alternatives by AW or PW is that:Select one:O a LCM for different life alternatives is used in PW but not in AW analysis.O b.LCM for different life alternatives is used in FW but not in AW analysis.Ocnone of these answers.O d. LCM for different life alternatives is used in AW but not in PW analysis. EconomicsWhich statement is incorrect regarding the use of factors?O a A are equal amounts of money.O b.A should be consecutive amountsOc Fis at the same year of the last A.O d. P is at the same year of the first A.

Disclaimer- “Since you have asked multiple question, we will solve the first question for you as per…

Answered: When capital recovery (CR) is…

When capital recovery (CR) is calculated, the annual operating maintenance (AOC) is: Select one: O a converted into PW. O b. included in CR Oc none of the answers. O d. not included in CR.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: recommend to SLB to increase capacity without any additional equip 8. Greg Kopp, Acting Dean of…

A: AustraliaMexicoInvestment$105,000$185,000Net Annual Benefit$60,000$71,000Project Life2 years3…

Q: Discounting in the life cycle costing method of economic evaluation:

A: Below is the formula that is used to find the Preset value: PV = FV1+rnPV = Present valueFV = Future…

Q: A firm is choosing between machines that perform the same task in the same time. Assume the minimum…

A: For machine X, the first cost (P) = 5,000 and the estimated service life is 6 years. Salvage value…

Q: An initial investment of P1, 000, 000 was put up for a new business that will produce an annual…

A: Answer:

Q: A small town is considering two potential alternatives for a garbage collection system. The…

A: The objective of the question is to calculate the AB/AC ratio for two potential alternatives for a…

Q: PLS HELP ASAP

A: A. 10,750,000Explanation:Retained Earnings for Year 1 10,300,000.00 Profit for Year 2…

Q: 300 250 200 150 100 50- 0 $ (b) $50 (c) $90 (d) $140 (e) $160 024 29. What is the Total Cost at…

A: Total Cost is the sum total of both fixed costs and variable costs. Fixed Cost is fixed for all the…

Q: Before starting a new business an entrepreneur should conduct a ........to establish the business is…

A: Entrepreneur: The person organizing, managing, and assuming the risks of a business or enterprise.…

Q: 4) In order to make a replacement decision, a firm calculated the equivalent annual cost of owning…

A: Annual Cost is the cost of utilizing the estimated units of cost of living in a particular unit. It…

Q: $4.75. Complete the following table (you can either print it out or copy the table to you paper):…

A: The term "optimum use" can be described as the most effective and efficient way of utilizing the…

Q: A furniture manufacturer company has gathered the cost information for its production process in one…

A: Labor hours required to produce 2500 units = 1800/2000*2500 = 2250 labor hours

Q: The period of time required for the project's profit or other benefits to equal the project's cost…

A: Payback period is the required time period to recover the initial cost of the project.

Q: Physical Units (pennants) 1,050 Work in process, November 1ª Started during November ? Good units…

A: Answer;

Q: 5. How many hours/year operated at full load so that the annual cost will equal? Motor A Motor B…

A: There are two alternative for investment in motors : Motor A & B Annual Cost for the given cash…

Q: 2. A certain company is considering two types of machine for its operation. The data are as follows:…

A: Present Worth refers to discounting of the future cash flow to the present at provided fixed rate .…

Q: Total Output (Q) (Pounds) (1) 0 100 250 320 380 380 420 430 Price per Pound ($2.00) (2) Average…

A: The total revenue refers to the revenue a firm generates from sales at different levels of…

Q: Karim Inc. calculated the annual cost öf öwning an EUAC Annual EUAC Replacement Capital Repair…

A: The cost of owning and operating as well as maintaining an asset throughout the length of its entire…

Q: PART 2 - C PROBLEM SOLVING PROBLEM NO.2 Compute the FW: $3500 market value productivity attributable…

A: A stream of cash flow refers to the flow of cash payments or cash receipts. The period of these cash…

Q: What is the equivalent AW of the below project? Given that i is 5% Initial Cost $1,000 Salvage value…

A: Initial cost =$1000Operating cost =$10per yearMaintenance cost =$30 every 5 years.Life =…

Q: project is estimated to cost P100, 000, last ars and have a P10, 000 salvage value. The nual gross…

A: Comparable yearly expense is the annual expense of buying and keeping not entirely settled by…

Q: The following information relates to a project Year Cash flow Sh. 'Millions' (16) 8 10 1 2 3 114 16…

A: A project should abandoned in an year which provides higher rate of return over the cost of capital…

Q: Question 25 A replacement study showed that the components of the total costs of an asset are as…

A: The economic life of an asset is the number of years that the asset is useful to the business.

Q: Serseman Company has three potential projects from which to choose. Selected information on each of…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: A rural community/company is considering an investment in a cottage industry for which the net cash…

A: When discount rate = 10%, NPV = - 5000 + 1500 x P/F(10%, 1) + 1300 x P/F(10%, 2) + 1800 x P/F(10%,…

Q: 2. Allwhite Company sells its single product for P30 per unit. The contribution margin ratio is 45%,…

A: Total Revenue refers to the total amount of money that the producer or seller receives for selling…

Q: The following are data from a production, calculate; The Break-even point in terms of sales value…

A: In the question above, it is given that : Monthly Fixed Factory Overhead Cost = P 600,000…

Q: D (units sold) Determine the value of the maximum profit. O A BD53,000 O B. BD52.500

A: Profit maximization is a process business firms undergo to ensure the best output and price levels…

Q: The mineral unobtainium is a valuable non-renewable resource with a total estimated supply of 95…

A: Non-renewable resource:- Oil, natural gas, coal, and nuclear energy are the four principal forms of…

Q: Compute the IRR statistic for Project E. The appropriate cost of capital is 8 percent. (Do not round…

A: IRR Refers to a metric used in financial analysis to estimate the profitability of potential…

Q: How many years is the economic life of a machine if its original cost is P1 400 000, salvage value…

A: Straight line method of depreciation is the method by which we calculate the depreciation on a asset…

Q: Assignment No. 11 Answer 2 d, e

A: d) Hurwicz index of optimism with α = 0.4 α is the coefficient of realism which hovers between 0…

Q: A department has a planned stock turnover of 4 and planned sales of $160,000.00 for a six month…

A: Planned Beginning of Month (BOM) stock refers to the anticipated quantity of inventory a company…

Q: 14. Two projects are under consideration. Year A B 0 ($3,400) ($4,500) 1 $2,750 $1,000 2 $2,750…

A: Answer; Year Cash Flow (A)…

Q: FE: You must choose between four pieces of comparable equipment based on the cash flows below. All…

A: The present worth of a project or investment refers to its value at present based on the associated…

Q: machine at the end of 6 years is $5000. To desire a 10% return on investment (rate of return), what…

A: Given: Cost of machine=$25000 Operating expenses per year=$3000 Number of years=6 Salvage…

Q: What is the breakeven point (in units) for Press A? 10,657 11,111 12,432 14,286 What is the…

A: Answer: Given values: Size A: Fixed cost = $200,000 Variable cost = $6.00 Selling price =…

Q: Use the data table and the spiderplot below to answer the questions. Item 02$% -20% PW, in S Initial…

A: This question involves the analysis of a project using cash flow data and a spider plot. The…

Q: This are the additional costs that result from increasing the output level by one or more units.

A: GIVEN This are the additional costs that result from increasing the output level by one or more…

Q: 3. A supermarket chain buys loaves of bread from its supplier at $0.50 per loaf. The chain is…

A: The minimum acceptable rate of return (MARR) or hurdle rate in business and engineering economics is…

Q: $600,000, the equipment costs $250,000, and $100,000 working capital is required. It is ex- pected…

A: Total first cost = 300,000 + 600,000 + 250,000 + 100,000 = 1,250,000 Annual net benefit = sales -…

Q: The Marketing Department has completed its estimates of cash flows for your project and has given…

A: IRR is where NPV is zero. IRR is internal rate of return. NPV is net present value.

Q: PLS HELP ASAP ON BOTH

A: 1. Balance sheet, income and expenses, and cash flow are the three major pro-forma statements. 2.…

Q: Ifit is said that the economic life of a challenger is four years it means that_ Oathe payback…

A: The estimated span of time during which an item will be useful to the typical owner is known as its…

Question

When capital recovery (CR) is calculated, the annual operating maintenance (AOC) is:
Select one:
O a converted into PW.
O b. included in CR
Oc
none of the answers.
O d. not included in CR.
An important difference between evaluating ME alternatives by AW or PW is that:
Select one:
O a LCM for different life alternatives is used in PW but not in AW analysis.
O b.
LCM for different life alternatives is used in FW but not in AW analysis.
Oc
none of these answers.
O d. LCM for different life alternatives is used in AW but not in PW analysis.

Economics
Which statement is incorrect regarding the use of factors?
O a A are equal amounts of money.
O b.
A should be consecutive amounts
Oc Fis at the same year of the last A.
O d. P is at the same year of the first A.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Lamar Company is studying a project that would have an eight-vear life and require a S1,600,000 invest- ment in equipment. At the end of eight vears, the project would terminate and the equipment would have no salvage value. The project would provide net income ench year as follows: Sales... Less: Variable expenses. $3,000,000 1.800,000 .... Contribution margin. Less: Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs.... . 1,200,000 $700,000 Amortization 200,000 Total fixed expenses. 900,000 Net income... $ 300,000 The company's discount rate is 18%. Required: 1. Compute the net annual cash inflow from the project. 2. Compute the project's net present value. Is the project acceptable? 3. Compute the project's payback period. If the company requires a maximum payback of the the project acceptable? 4. Compute the project's simple rate of return.
2. A company is planning to install a new automated concrete block making machine. Four different brands are available. The related cost information for these four brands are as follows Initial investment Useful life 5 Brand P1 P2 P3 P4 $24,000 $30,400 $49,600 $52,000 5 5 5 (years) Annual expenses Power $2,720 $2,720 $4,800 $5,040 labor $26,400 $24,000 $16,800 $14,800 Maintenance $1600 $1,800 $2,600 $3,000 Insurance $480 $608 $992 $1040 Percent of nondetective 95% 92% 96% 91% items Assume that each brand has the same capacity 120,000 units per year and has no market value at the end of useful life. Which brand should be selected if all non-defective units can be sold at a selling price of $0.875 per unit by finding Present worth, Annual worth and Future worth? Considering MARR 10 Percent, solve by spreadsheet.
please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
Question 5 Cost data of a machine is shown in the following table with an annual rate of 12%. Calculate annual worth at end of year 2 M&O cost Retention Yr. Market Value per year O First Cost) 55,000 1 35,000 45.000 2 20,000 47.500 3 15,000 50.000 4 2.000 53.500 O 6a256 O 69209 O R476 O 67.854 Question 6 Use same cost data from last question and 12% annual rate of return. Calculate annual worth at end of Year 3. O 66.765 O 64332 O 67.428 O 66256 D Question 7 Use the same cost data of the machine from the above 2 questions and 12% interest rate per year. What is the ESL of this machine? 01 04
Please no written by hand solution
- The costs associated with manufacturing a product are debited to "Operating Expenses". are all variable. are expensed as incurred. are an asset until the finished goods are sold. genrate answer in step and required method with explantion in aech steps and each step by step and make some good headings , explanation, and final solution also
Pls answer asap. Thank you .. I will rate helpful
please answer asap
v
12-A customer has asked your company to prepare a bid on supplying 1000 units of a new product. Production will be in batches of 100 units. You estimate that costs for the first batch of 100 units will average OMR 200 a unit. You also expect that a 90% learning curve will apply to the cumulative labour cost on this contract. Estimate the incremental labour cost of extending the production run to produce an additional 1000 units. a. None of the given options b. OMR 52490 c. OMR 55500 d. OMR 60000
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.
The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash Accounts receivable Inventory Buildings and equipment, net Accounts payable Common shares Retained earnings a. The gross margin is 25% of sales. b. Actual and budgeted sales data are as follows: March (actual) April May June $50,000 $60,000 $72,000 $ 8,000 20,000 36,000 120,000 21,750 150,000 12,250 July $90,000 $48,000 c. Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are the result of March credit sales. d. Each month's ending inventory should equal 80% of the following month's budgeted cost of goods sold. e. One-half of a month's inventory purchases is paid for in the month of purchase; the other one-half is paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory. f. Monthly expenses are as follows:…