The life of the insulated tank that have lowest EUAC. Introduction: Equivalent annual cost is considered the cost which is used on assets’ operating, owing and maintaining the asset over the life of an asset. EAC is used by the company for budgeting decision of capital, as it helps in comparing the lifespan of all the assets available in the company.

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Answer 1

Question

Chapter 13, Problem 5P

1.

To determine

To calculate: The life of the insulated tank that have lowest EUAC.

Introduction: Equivalent annual cost is considered the cost which is used on assets’ operating, owing and maintaining the asset over the life of an asset. EAC is used by the company for budgeting decision of capital, as it helps in comparing the lifespan of all the assets available in the company.

To determine

To calculate: If the insulated tank is replaced by another tank the economic life likely to be shorter or longer.

Introduction: Equivalent Uniform Annual Worth means the annual worth of all the costs and benefits collected over period of one year. As all the costs and benefits are incurred in different period of the one year with one number it is said as annual worth. As it can be different for different year as they have different number

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Section 1 Answer all questions. Show all your workings. (a) Suppose there are two firms 1 and 2, whose abatement costs are given by c₁(e₁) and c₂ (e₂), where e denotes emissions and subscripts denote the firm. We assume that c{(e;) 0 for i = 1,2 and for any level of emission e we have c₁'(e) # c₂'(e). Furthermore, assume the two firms make different contributions towards pollution concentration in a nearby river captured by the transfer coefficients ε₁ and 2 such that for any level of emission e we have 2(e) +2 The regulator does not know the resulting C₁'(e) Τι environmental damages. Using an analytical approach explain carefully how the regulator may limit the concentration of pollution using (i) a Pigouvian tax scheme and (ii) uniform emissions standards. Discuss the cost-effectiveness of both approaches to control pollution. [200 marks] (b) "Whether the regulator sells or gives away tradeable emission permits free of charge, the quantities of emissions produced by firms are the…

Answer 2

Question

Chapter 13, Problem 5P

1.

To determine

To calculate: The life of the insulated tank that have lowest EUAC.

Introduction: Equivalent annual cost is considered the cost which is used on assets’ operating, owing and maintaining the asset over the life of an asset. EAC is used by the company for budgeting decision of capital, as it helps in comparing the lifespan of all the assets available in the company.

To determine

To calculate: If the insulated tank is replaced by another tank the economic life likely to be shorter or longer.

Introduction: Equivalent Uniform Annual Worth means the annual worth of all the costs and benefits collected over period of one year. As all the costs and benefits are incurred in different period of the one year with one number it is said as annual worth. As it can be different for different year as they have different number

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Answer 3

Question

Chapter 13, Problem 5P

1.

To determine

To calculate: The life of the insulated tank that have lowest EUAC.

Introduction: Equivalent annual cost is considered the cost which is used on assets’ operating, owing and maintaining the asset over the life of an asset. EAC is used by the company for budgeting decision of capital, as it helps in comparing the lifespan of all the assets available in the company.

To determine

To calculate: If the insulated tank is replaced by another tank the economic life likely to be shorter or longer.

Introduction: Equivalent Uniform Annual Worth means the annual worth of all the costs and benefits collected over period of one year. As all the costs and benefits are incurred in different period of the one year with one number it is said as annual worth. As it can be different for different year as they have different number

Expert Solution & Answer

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Answer 4

Question

Chapter 13, Problem 5P

1.

To determine

To calculate: The life of the insulated tank that have lowest EUAC.

Introduction: Equivalent annual cost is considered the cost which is used on assets’ operating, owing and maintaining the asset over the life of an asset. EAC is used by the company for budgeting decision of capital, as it helps in comparing the lifespan of all the assets available in the company.

To determine

To calculate: If the insulated tank is replaced by another tank the economic life likely to be shorter or longer.

Introduction: Equivalent Uniform Annual Worth means the annual worth of all the costs and benefits collected over period of one year. As all the costs and benefits are incurred in different period of the one year with one number it is said as annual worth. As it can be different for different year as they have different number

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Answer 5

Chapter 13, Problem 5P

1.

To determine

To calculate: The life of the insulated tank that have lowest EUAC.

Introduction: Equivalent annual cost is considered the cost which is used on assets’ operating, owing and maintaining the asset over the life of an asset. EAC is used by the company for budgeting decision of capital, as it helps in comparing the lifespan of all the assets available in the company.

To determine

To calculate: If the insulated tank is replaced by another tank the economic life likely to be shorter or longer.

Introduction: Equivalent Uniform Annual Worth means the annual worth of all the costs and benefits collected over period of one year. As all the costs and benefits are incurred in different period of the one year with one number it is said as annual worth. As it can be different for different year as they have different number

Answer 6

Chapter 13, Problem 5P

1.

To determine

To calculate: The life of the insulated tank that have lowest EUAC.

Introduction: Equivalent annual cost is considered the cost which is used on assets’ operating, owing and maintaining the asset over the life of an asset. EAC is used by the company for budgeting decision of capital, as it helps in comparing the lifespan of all the assets available in the company.

Answer 7

Chapter 13, Problem 5P

1.

To determine

To calculate: The life of the insulated tank that have lowest EUAC.

Introduction: Equivalent annual cost is considered the cost which is used on assets’ operating, owing and maintaining the asset over the life of an asset. EAC is used by the company for budgeting decision of capital, as it helps in comparing the lifespan of all the assets available in the company.

Answer 8

To determine

To calculate: If the insulated tank is replaced by another tank the economic life likely to be shorter or longer.

Introduction: Equivalent Uniform Annual Worth means the annual worth of all the costs and benefits collected over period of one year. As all the costs and benefits are incurred in different period of the one year with one number it is said as annual worth. As it can be different for different year as they have different number

Answer 9

To determine

To calculate: If the insulated tank is replaced by another tank the economic life likely to be shorter or longer.

Introduction: Equivalent Uniform Annual Worth means the annual worth of all the costs and benefits collected over period of one year. As all the costs and benefits are incurred in different period of the one year with one number it is said as annual worth. As it can be different for different year as they have different number

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 13 - Prob. 1QTC Ch. 13 - Prob. 2QTC Ch. 13 - Prob. 3QTC Ch. 13 - Prob. 4QTC Ch. 13 - Prob. 5QTC Ch. 13 - Prob. 1P Ch. 13 - Prob. 2P Ch. 13 - Prob. 3P Ch. 13 - Prob. 4P Ch. 13 - Prob. 5P

Solution Summary: The author explains that the life of the insulated tank that have lowest EUAC is 1829.5. It is used by the company for budgeting decision of capital.

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Chapter 13 Solutions