Question 4☐You're considering buying a new delivery vehicle for your flower shop, and you have two choices, one with a useful life of 10 yearsand the other with a useful life of 15 years. The first, Van X, has a useful life of 15 years and will cost you $42,000 in Year 0. Youexpect it to earn an additional $8,000 per year in profit, and have a salvage value of $2,000 at the end of Year 15.Using the coterminated assumptions and a study period of 15 years, what is the Future Worth of Van X?Typed numeric answer will be automatically saved.I

Choosing the Right Delivery Van: A Deep Dive into Future Worth with Van XCongratulations on…

Answered: Question 4 ☐ You're considering buying…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Your bakery can produce 3,000 unit of bagel per week for 48 weeks of operation per year. You aim to stay in this business for five years. You can either make the dough for the bagels in house or buy them from a different source. If you make the dough in house, you face with annual labour costs: $30,000, annual safety regulation costs: $5,000 and annual material costs: $20,000. But, if you choose to buy the dough from a different source, you must have a special dough-mixer machine to make adjustment for your production. Therefore, you need to pay $5,000 for the dough mixer machine, which has $1,000 salvage value at the end of 5 years. Furthermore, you face with annual maintaining costs including labour costs: $20,000 and additional overhead costs: $10,000 Using this information, find the unit cost of buy the bagel option with MARR 20%. a) Between $1.00 and $1.10 b) None of the answers are correct c) Between $1.20 and $1.30 d) Between $0.20 and $0.30 e) Between $0.50 and $0.60 f) Between…
9. A machine part can be exhausted either from aluminum or steel. There is an order of 8,000 units.Steel costs 3.80Php/kg, while aluminum cost 8.70Php/kg. If steel is used, the steel per unit weighs110g and 30g for aluminum. In production, steel is 50 units/hr and 80units/hr with an aid of a toolcosting 640Php, which will be useless after the 8,000 units are finished. The cost of the machineoperator is 10.80Php/hr. if all other costs are identical, which material is more economical?
The surface area of a certain plant that requires painting is 8,300 sq. ft. Two kinds of paint are available whose brands are A and B. Paint A costs Php 1.50 per sq.ft. but needs renewal at the end of every 4 years while paint B costs PHP 1.90 per sq.ft. If money is worth 12% effective, how often should paint B be renewed so that it will be economical as paint A? a.6.465 years b.7.465 years c.5.465 years d.8.465 years
A road can be paved with either asphalt or concrete. Concrete costs $20,000/mile and lasts for 20 years. What is the maximum that should be spent on asphalt, which lasts only 10 years? The annual maintenance costs are $500/mile for both pavements. The cost of money = 8%.
A producer of synthetic motor oil for automobiles and light trucks has made the following statement: “One quart of Dynolube added to your next oil change will increase fuel mileage by one percent. The one-time additive will improve your fuel mileage over 50,000 miles of driving.” Assume the company’s claim is correct. How much money will be saved by adding one quart of Dynolube if gasoline costs $4.00 per gallon and your car averages 20 miles per gallon without the Dynolube? If a quart of Dynolube sells for $19.95, would you use this product to your automobile?
SLP manufacturing requires painting 8,000 sq. ft. surface area. Two kinds of paint are available whose Davis and Boysen. Davis cost Php 1.40 per sq. ft. but needs renewal at the end of 4 years while Boysen cost Php 1.80 sq. ft. If the money is worth 12% effective, how often should paint B be renewed so that it will be economical as point A? (Note: Answer in this sequence. GIVEN > REQUIRED > CASHFLOW DIAGRAM > SOLUTION > CONCLUSION OF FINAL ANSWER. CASHFLOW DIAGRAM IS REQUIRED)
The monthly demand for ice cans being manufactured by Mr. Cruz is 3k pieces. With a manually guillotine, the unit cutting cost is $50.00. An electrically operated hydraulic guillotine was offered to Mr. Cruz at a price of $350 and which will cut by 25% the unit cutting cost. Disregarding the cost of money, how many months will Mr. Cruz be able to recover of the machine if he decides to buy now?
The cost of building the RAMA IX suspension bridge in Thailand is $8 million. The bridge will need to be repainted every 7 years and resurfaced every 9 years, each for an indefinite period of time. The cost of painting is expected to be $159,000 and the cost of resurfacing is estimated to be $417,000. For part a, please calculate your answer to the nearest whole dollar. Format 0000 No commas a. Determine the capitalized worth of the bridge an interest rate of 4% per year compounded annually. $- For part b, please calculate your answer to 2 decimal places. Do not convert to a percent - leave in decimal form: 0.00 b. What is the effective interest rate for this project?
Jojo bought a second-hand Betamax VCR and then sold it to Rudy at a profit of 40%. Rudy then sold the VCR to Noel at a profit of 20%. If Noel paid Php. 2 856.00 more than it cost Jojo, how much did Jojo pay for the unit?
How do you get from step 3 to step 4 - (-11)/5
ABC university tuition fees can be paid by on-time payment (pay total amount due when classes start at the cost of 90,000 pesos per year) or early-bird payment (pay total amount due 1 year in advance with a 10% discount). What is the amount of the savings compared to the on-time payment at the time that the on-time payment is made?
A man is considering investing P500, 000 to open a semi-automatic auto-washing business in a city of 400, 000 population. The equipment can wash, on the average, 12 cars per hour, using two men to operate it andto do small amount of hand work. The man plans to hire two men, inaddition to himself, and operate the station on an 8-hour basis, 6 days perweek, 50 weeks per year. He will pay his employees P25. 00 per hour. Heexpects to charge P25. 00 for a car wash. Out-of-pocket miscellaneouscost would be P8, 500 per month.He would pay his employees for 2 weeks for vacations each year.Because of the length of his lease, he must write off his investment within 5years. His capital now is earning 15%, and he is employed at a steady jobthat pays P25, 000 per month. He desires a rate of return of at least 20% onhis investment. Would you recommend the investment?a) Use ROR methodb) Use Annual Worth methodc) Use present worth methodd) Use future worth methode) Solve for the payback period and the…

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