Suppose you are in charge of the procurement for installation of a heating system for a factory building. Option A is quoted as an economic product with an initial price tag of 78,000 $. On the other hand Option B is a more efficient product with a higher price tag of 95,000 $. It is also estimated that the operating of Option B will be roughly 300 $ less per month on average. The company quoting these products claim that the price difference will be paid off in 5 years. Do your own NPV or ROI analysis and see if this claim is true or not. Hint: take annual inflation rate as 12% on average.
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- Question 9 Trenny has asked her assistant to prepare estimates of cost of two different sizes of power plants. The assistant reports that the cost of the 150 MW plant is $220,000,000, while the cost of the 270 MW plant is $400,000,000. If Trenny has a budget of only $300,000,000, estimate how large a power plant she could afford using linear interpolation (Enter your answer rounded to one decimal place and in MW eg. XX.X)?Lulu hypermarket estimates daily demand of 18 kgs for a product. It costs RO 100 to make and receive an order, and it takes 16 workdays to receive it. The annual holding cost is 25 % of purchase price. The price RO 2 per kg. The company is operating 5 days per week, and a total of 210 workdays in one year. What is the minimum annual total holding and ordering cost in RO? Round-up to the nearest integer O a. 152 O b. None is correct O c. 725 O d. 625 O e. 615The surface area of a certain plant that requires painting is 8 ,000 sq ft. Two kinds of paint are availablewhose brand are J and K .Paint J costs P1.40 per sq.ft but needs renewal at the end of every 4 years while paint K costsP1.8 per square ft. If money is worth 16% effective , how often should paint K be renewed so that it will be aseconomical as paint J? A) 5.6.years C) 3.9 yearsB) 4.2 years D) 5.3 years
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- ENGINEERING ECONOMY (ALREADY ANSWERED IN BARTLEBY. PLEASE DO NOT COPY) RATE WILL BE GIVEN. WRITE THE COMPLETE EXPLANATION LEGIBLY OR TYPEWRITTEN. You have been taking a course on game theory at university. After attending 10 of 15 hours of classes, you realize that you don’t enjoy the subject and are likely to do poorly in the final exam. At this point, you could stop attending these classes and give up on the course. However, you decide that since you have already spent so much time going to class, it would be costly to stop attending them. Is this reasoning correct?Your friend Claire has been designing her own hoodies and giving them as gifts to friends and family. She has decided to sell them online soon by using a 3rd party website with a service surcharge based on her pricing. Using the information below, what is the relationship between Claire's selling price per hoodie and profit margin? (Please plot a graph dipcting the relationship) Costs ($) Base Hoodie Cost $30 Craft Supplies to design $10 Selling Website Service Charge 5%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…