Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 7, Problem 5ST
(a):
To determine
Selection of the project
(b):
To determine
Selection of the Range.
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Solve it correctly please. I will rate accordingly with 4votes.
Low-energy lightbulbs typically cost $3.65, have a life of nine years, and use about $1.75 of electricity a year. Conventional lightbulbs are cheaper to buy, for they cost only $.53. On the
other hand, they last only about a year and use about $6.75 of energy.
a. If the real discount rate is 4%, what is the equivalent annual cost of the two products? (Do not round intermediate calculations. Enter your answers as a positive value rounded to 2
decimal places.)
Equivalent Annual Cost
Low-energy lightbulbs
Conventional lightbulbs
AVC = 10-0.03q+0.00005q^2
ATC = 10-0.03q+0.00005q^2 +100/q
and
MC = 10-0.06q+0.00015q^2
Answer the following questions in EXCEL:1 At what value of q is AVC at its minimum? (Hint: The easiest way tocalculate this value is to solve AVC - MC = 0 for q.)2 At the above output level what value does AVC take?3 If the forecasted price of the firm's output is $10 per unit:a How much output will the firm produce in the short run?b How much profit (loss) will the firm earn)?4 If the forecasted price is $7 per unit:a How much output will the firm produce in the short run? (Keep only2 decimals)b How much profit (loss) will the firm earn)? (Keep only 2 decimals)
Chapter 7 Solutions
Contemporary Engineering Economics (6th Edition)
Ch. 7 - Prob. 1PCh. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 7PCh. 7 - Prob. 8PCh. 7 - Prob. 9PCh. 7 - Prob. 10P
Ch. 7 - Prob. 11PCh. 7 - Prob. 12PCh. 7 - Prob. 13PCh. 7 - Prob. 14PCh. 7 - Consider an investment project with the cash flows...Ch. 7 - Consider the investment projects given in Table...Ch. 7 - Prob. 17PCh. 7 - Prob. 18PCh. 7 - Consider the investment projects given in Table...Ch. 7 - Consider the investment projects given in Table...Ch. 7 - Prob. 21PCh. 7 - Prob. 22PCh. 7 - Consider the investment projects given in Table...Ch. 7 - Prob. 24PCh. 7 - Prob. 25PCh. 7 - Prob. 26PCh. 7 - Prob. 27PCh. 7 - Prob. 28PCh. 7 - Prob. 29PCh. 7 - Prob. 30PCh. 7 - Prob. 31PCh. 7 - Prob. 32PCh. 7 - Prob. 33PCh. 7 - Prob. 34PCh. 7 - Prob. 35PCh. 7 - Prob. 36PCh. 7 - Prob. 37PCh. 7 - Prob. 38PCh. 7 - Prob. 39PCh. 7 - Prob. 40PCh. 7 - Prob. 41PCh. 7 - Prob. 42PCh. 7 - Consider the two mutually exclusive investment...Ch. 7 - You are considering two types of automobiles....Ch. 7 - Prob. 45PCh. 7 - Prob. 46PCh. 7 - Fulton National Hospital is reviewing ways of...Ch. 7 - Prob. 48PCh. 7 - Consider the investment projects given in Table...Ch. 7 - Prob. 50PCh. 7 - Prob. 51PCh. 7 - Prob. 52PCh. 7 - Prob. 53PCh. 7 - Prob. 54PCh. 7 - Prob. 55PCh. 7 - Prob. 56PCh. 7 - Prob. 57PCh. 7 - Prob. 1STCh. 7 - Prob. 2STCh. 7 - Prob. 3STCh. 7 - Prob. 4STCh. 7 - Prob. 5ST
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