Use Excel The Tree Top Airline (TTA) is a small feeder-freight line started with very limited capital to serve the independent petroleum operators in the arid Southwest. All ofits planes are identical, although they are painted different colors. TTA has been contracting its overhaul work to Alamo Airmotive for $35,000 per plane per year.TTA estimates that, by building a $450,000 maintenance facility with a life of 15 years and a residual (market) value of $90,000 at the end of its life, they couldhandle their own overhaul at a cost of only $25,000 per plane per year. What is the minimum number of planes they must operate to make it economicallyfeasible to build this facility? The MARR is 12% per year.Click the icon to view the interest and annuity table for discrete compounding when i = 12% per year.Choose the correct answer below.○ A. 9O B. 8C. 7○ D. 5○ E. 10

Here's how to calculate the minimum number of planes needed for TTA to make building the facility…

Answered: The Tree Top Airline (TTA) is a small…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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An electronics firm invested $60,000 in a precision inspection device. It cost $4000 to operate and maintain in the first year and $3000 in each of the subsequent years. At the end of 4 years, the firm changed their inspection procedure, eliminating the need for the device. The purchasing agent was very fortunate in being able to sell the inspection device for $60,000, the original price. The plant manager asks you to compute the equivalent uniform annual cost of the device during the 4 years it was used. Assume interest at 6% per year. Please show work, preferably not with excel. Will Upvote!
A factory engaged in the fabrication of an automobile part with a production capacity of 10,742 units per year is only operating at 62% of the capacity due to unavailability of the necessary foreign currency to finance the importation of their raw materials. The annual income is P485,124, annual fixed costs are P197,144.88, production costs are 30.255 per unit and variable costs are P25.685 per unit. A.)What is the selling price of each automobile parts? B.)How much profit will the manufacturer receives yearly? (Please provide detailed solution not in excel, I'm in rush I wi guarantee you to vite it up for your effort thank you)
A piece of construction equipment will cost $6,000 new and will have an expected life of 8 years, with no salvage value at the end of its life. The disbursements for taxes, insurance, maintenance, fuels, and lubricants are estimated to be $1,500 for the first two years, $1,700 for the third, $1,900 for the fourth, and will continue to increase by $200 each year thereafter. a) Draw a fully labelled diagram to represent this cash flow. b) What is the equivalent Future Cost (FW) of this piece of equipment if the rate of interest is 12%?
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An integrated, combined cycle power plant produces 290 MW of electricity by gasifying coal. The capital investment for the plant is $530 million, spread evenly over two years. The operating life of the plant is expected to be 15 years. Additionally, the plant will operate at full capacity 74% of the time (downtime is 26% of any given year). The MARR is 5% per year. a. If this plant will make a profit of three cents per kilowatt-hour of electricity sold to the power grid, what is the simple payback period of the plant? Is it a low-risk venture? b. What is the IRR for the plant? Is it profitable?
Brawdy Plastics, Inc., produces plastic seat belt retainers for General Motors at their plant in Buffalo, New York. After final assembly and painting, the parts are placed on a conveyor belt that moves the parts past a final inspection station. How fast the parts move past the final inspection station depends upon the line speed of the conveyor belt (feet per minute). Although faster line speeds are desirable, management is concerned that increasing the line speed too much may not provide enough time for inspectors to identify which parts are actually defective. To test this theory, Brawdy Plastics conducted an experiment in which the same batch of parts, with a known number of defective parts, was inspected using a variety of line speeds. The following data were collected. Excel file: data14-05.xlsx Number of Line Defective Speed Parts Found 20 23 20 21 30 19 30 16 40 15 40 17 50 14 50 11 If required onter
Company X has $ 938529 in annual fixed costs. The primary product generates $ 7.98 in revenue per unit and has variable costs of $5.50. The annual breakeven quantity is ____ units.

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