Engineering Economy, Student Value Edition (17th Edition)
17th Edition
ISBN: 9780134838137
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 13, Problem 13P
To determine
Formulation of the given program as linear programming model.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
How much is the combined incremental tax rate (state and federal) for a company located in the state of North Carolina where the state tax rate is 0.06 (in decimal, not percent)? Express response in decimals and 3 places. Do not express an answer in percentage.
What is the net effect on a project's NPV, if it's
salvage value in 10 years increases from
$24126 to $48252? Assume the discount rate
is 8%, the CCA rate is 14.1%, the tax rate is
25%, and the half-year rule applies.
a) $6734
b) $12520
c) $9393
d) $11262
e) $16860
None
Chapter 13 Solutions
Engineering Economy, Student Value Edition (17th Edition)
Knowledge Booster
Similar questions
- has a cost of $53,600, lasts 9 years with no salvage value, and costs $150,000 per year in operating expenses. It is in the 3-year property class. Investment B has a cost of $84,500.00, lasts 9 years with no salvage value, and costs $125,000 per year. Investment B, however, is in the 7-year property class. The company marginal tax rate is 25%, and MARR is an after-tax 10%. Based upon the use of MACRS-GDS depreciation, compare the AW of each alternative.AWA = $enter a dollar amount AWB = $enter a dollar amount Which should be selected? What must be Investment B's cost of operating expenses for these two investments to be equivalent? $enter a dollar amountarrow_forwardThe Double Arthur Company (DAC) has three product lines of coffee mugs — Earth, Sun and Mun — with contribution margins of $9, $8, and $5 respectively. The president Maxat Jexembay foresees sales, consisting of 40K units of Earth, 100K units of Sun, and 100K units of Mun. The company’s fixed costs for the period are $600000. 1. What would the new breakeven point in units be if these relationships persist in the next period? 2. What would the new operating income be if these relationships persist in the next period?arrow_forwardHand written solutions are strictly prohibitedarrow_forward
- Perform a present worth (PW)-based evaluation of the two alternatives below using a spreadsheet. The after-tax minimum acceptable rate of return (MARR) is 8% per year, Modified Accelerated Cost Recovery System (MACRS) depreciation applies, and Te = 40%. The (GI - OE) estimate is made for the first 3 years; it is zero in year 4 when each asset is sold. Alternative X Y First Cost, $ –8,000 –13,000 Salvage Value, Year 4, $ 0 2,000 GI-OE, $ per Year 3,500 5,000 Recovery Period, Years 3 3 The PW for alternative X is determined to be $ . The PW for alternative Y is determined to be $ . Alternative _______ is selected.arrow_forwardA company has been ordered by OSHA to install new safety equipment in an R&D laboratory. It has been determined that either of the two following alternatives will meet the appropriate requirements:arrow_forwardWhile studying for the engineering economy final exam, you and two friends find yourselves craving a fresh pizza. You can’t spare the time to pick up the pizza and must have it delivered. “Pizza Hut” offers a 1-1/4-inch-thick (including toppings), 20-inch square pizza with your choice of two toppings for $15 plus 5% sales tax and a $1.50 delivery charge (no sales tax on delivery charge). “Dominos” offers the round, deep-dish Sasquatch, which is 20 inches in diameter. It is 1-3/4 inches thick, includestwo toppings, and costs $17.25 plus 5% sales tax and free delivery. a. What is the problem in this situation? Please state it in an explicit and precise manner. b. Systematically apply the seven fundamental principles of engineering economy to the problem you have defined in Part (a).arrow_forward
- Calculate the B/C ratio (modified) of a building that houses students during their classroom discussion. Theaccommodation equates to P525,000 annually. However, the annual maintenance is P135,000. Its constructioncosts for about 2.3 M. If sold 20 years from its first operating year, it will amount to P250,000. Take MARR = 15% Please solve using economics formula.arrow_forwardinstall cost of the new machinery is $400,000 and is expected to last for 5 years. The salvage value is expected to be $30,000 in today’s dollars. Revenue is expected to increase by $40,000 while operating costs are expected to increase $2500 (both actual). Determine the present worth of the project, assuming an (actual) MARR of 10%, a CCA rate of 10% and a corporate tax rate of 15%.arrow_forwardAssuming a agricultural water project that has an initial investment of 1 billion RMB and a time frame of 5 years, with a predicted 0.8 billion RMB/year revenue and operation fee 0.45 billion RMB plus 25% of enterprise income tax. If to adopt the straight-line depreciation method, the weighted mean capital cost is 10%. According to the corresponding equations mentioned above, the project can get its investment NPV, EVA and accumulative economic value added (MVA) (Table 1). Table 1: NPV and EVA investment decision analysis of agricultural water project (unit: 10 thousand RMB) Time (year) 100000 Initial investment Operation income Operation cost Depreciation 80000 80000 80000 80000 80000 45000 45000 45000 45000 45000 20000 20000 20000 20000 20000 3750 11250 3750 11250 31250 Income taxation 3750 3750 3750 11250 31250 NOPAT 11250 11250 After-tax cash flow 31250 31250 31250 NPV 18462 Capital cost EVA 10000 10000 10000 10000 10000 1250 1250 1250 1250 1250 MVA 18462 Present its feasibility…arrow_forward
- Nonearrow_forwardIdentify the special cash flow category for each of the following. While developing a new product line, Cook Company spent $3 million two years ago to build a plant for a new product. Ultimately that project was not pursued. You are now evaluating a new project and would locate production inside of this building. What type of cash flow is the cost of the building? You hope to increase membership at your yoga studio by opening a smoothie bar inside of the yoga studio. When considering the feasibility of the smoothie bar, what type of cash flow is the increased studio membership? Suppose Walker Publishing Company is considering bringing out a new finance text whose projected revenues include some revenues that will be taken away from another of Walker's books. What type of cash flow are the lost sales on the older book? You currently operate a taco truck but are considering converting the food truck into a bubble tea truck. What type of cash flow are the profits currently earned…arrow_forwardWhile studying for the engineering economy final exam, you and two friends find yourselves craving a fresh pizza. You can’t spare the time to pick up the pizza and must have it delivered. “Pick-Up-Sticks” offers a 1-1/4-inch-thick (including toppings), 20-inch square pizza with your choice of two toppings for $15 plus 5% sales tax and a $1.50 delivery charge (no sales tax on delivery charge). “Fred’s” offers the round, deep-dish Sasquatch, which is 20 inches in diameter. It is 1-3/4 inches thick, includes two toppings, and costs $17.25 plus 5% sales tax and free delivery. Solve, a. What is the problem in this situation? Please state it in an explicit and precise manner. b. Systematically apply the seven principles of engineering economy (pp. 3–6) to the problem you have defined in Part (a). c. Assuming that your common unit of measure is dollars (i.e., cost), what is the better value for getting a pizza based on the criterion of minimizing cost per unitof volume? d. What other…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Managerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning