Please answer C with new equipment106,000cost is 4.The investment cost of the new equipment is P385,000.00 and' willhave a market value of P180,000.00 at the end of a study period ofeight years. Increased productivity attributable to the equipmentwill amount to P28,000.00 per year after extra operating costs havebeen subtracted from the revenue generated by the additionalproduction. Draw the cash-flow diagram for this investmentopportunity. If the firm's MARR is 21% per year, is this proposal asound one?c.Use the AW method. The new equipment cost is P106,000.00.

Initial Cost = 106,000 (As asked specifically ) Annual Benefits = 28,000 Market Value after 8…

Answered: The investment cost of the new…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Amazing Airlines has the following customer metrics: Average customer relationship length: 8 years Average number of flights per customer per year: 2.5 Average cost per ticket: $600 Profit margin per customer: 8% The net CLV for Amazing Airlines is closest to? O $18,000 $960 $1260 O $12,000
The All-State Mutual Fund has the following 5-year record of performance: . Find this no-load fund's 5-year (2015-2019) average annual compound rate of return. Also find its 3-year (2017-2019) average annual compound rate of return. If an investor bought the fund in 2015 at $10.00 a share and sold it 5 years later (in 2019) at $15.72, how much total profit per share would she have made over the 5-year holding period? This no-load fund's 5-year (2015-2019) average annual compound rate of return is Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) 2018 2017 Net investment income Dividends from net investment income Net realized and unrealized gains (or losses) on security transactions Distributions from realized gains Net increase (decrease) in NAV NAV at beginning of year NAV at end of year 2019 $0.98 (0.95) 4.22 (1.06) $3.19 12.53 $15.72 $0.85 (0.85) 5.08 %. (Round to two decimal places.) (1.00) $4.08 8.45 $12.53 $0.84 (0.85)…
2. Two alternatives, a flexible manufacturing cell and fixed automation, have different cost and revenue characteristics as follows: Flexible Cell Fixed Automation Investment S2,500,000 б уears S800,000 in first year; increasing by $100,000 each year thereafter $300,000/year $1,500,000 3 years S800,000/year Life Gross cash savings s100,000 in the first year; decreasing to S80,000 in second year and S70,000 in third year Cash disbursement MARR 20% 20% Assuming "repeatability" and service needed for 6 years, show which alternative is preferred using the method of rate of return.
A company invests $6,250 at the beginning ofa seven-year project. At the end of every year forthe first five years, the project generates $1,550. Atthe end of the sixth year, the project generates nomoney. At the end of the seventh year, the project isterminated. How much must the project generate atthe end of the seventh year to realize 14% return onthe initial investment?
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A consulting engineer has been hired to advise a town how best to proceed with theconstruction of a 200,000-m3 water supply reservoir. Since only 120,000 m3 of storagewill be required for the next 25 years, an alternative to building the full capacity now isto build the reservoir in two stages. Initially, the reservoir could be built with 120,000 m3of capacity and then, 25 years hence, the additional 80,000 m3 of capacity could beadded by increasing the height of the reservoir. If interest is computed at 4%, whichconstruction plan is preferred? Detail your steps in excel.
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Lewis’s management has been considering movingto a new downtown location, and they are concerned that these plans may come to fruition priorto the equipment lease’s expiration. If the moveoccurs then Lewis would buy or lease an entirelynew set of equipment, so management wouldlike to include a cancellation clause in the leasecontract. What effect would such a clause haveon the riskiness of the lease from Lewis’s standpoint? From the lessor’s standpoint? If you werethe lessor, would you insist on changing any ofthe other lease terms if a cancellation clause wereadded? Should the cancellation clause containprovisions similar to call premiums or any restrictive covenants and/or penalties of the type contained in bond indentures? Explain your answer.
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