Acompany is setting up a project to buld housingUnits in which the investment volume is estimatedat ane million dollars to build (100 houses), the priceof the house is (20,000) dollars, to be paid in equalinstalliments for a periad of (4 years), the annualCosts are estimated at (50) thousand dollars.Calculate the Simple rate of returm, the payoackperiod and the internal rate of retum for theproject, bearing in mind that the lowest discounthiahest is (12'%). Will the projectbe accepted or rejected.rate is (8b) and the

Introduction Initial investment = 20,000 ×100 dollar =2,000,0004 = 500,000 Cost = 50,000 annual net…

A company is setting up a project to buld having Units in which the investment volume is estimated at one million dollars to build (100 houses), the price of the halse is (20,000) dollars, to be paid in equal installments for a period of (4 years), the amnual Costs are estimated at (50) thousand dollars. Calculate the Simple rate of returm, the payoack period and the internal rate of retum for the project, bearing in mind that the lowest discount wate is (8%) and the hiahest is (12%). Will the project be accepted or rejected?

A company is setting up a project to buld having Units in which the investment volume is estimated at one million dollars to build (100 houses), the price of the halse is (20,000) dollars, to be paid in equal installments for a period of (4 years), the amnual Costs are estimated at (50) thousand dollars. Calculate the Simple rate of returm, the payoack period and the internal rate of retum for the project, bearing in mind that the lowest discount wate is (8%) and the hiahest is (12%). Will the project be accepted or rejected?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Simplifying [(n+1)! / n!] gives what?
Please help me to solve this question without using excel
(engineering economic) What is the value of F equivalent to the cash flows in the diagram if i = 12%
d.) A construction firm is considering purchasing equipment that will reduce costs by P 40,000. The equipment costs P 300, 000 and has a salvage value of P 50,000 and a life of 7 years. The annual maintenance cost is P 6,000. While not in use by the firm, the equipment can be rented to others to generate an income of P 10,000 per year. If money can be invested for an 8% return, is the firm justified in buying the equipment?
Calculate the future worth (FW) at 10% of a project that will save $25K per year for 20 years. The first cost is $120K, and the salvage value is $20K. Compare this with the PW and the EAW. (Please show the process and solution ty.)
Find the annual revenue
Correct answer is D . I neees steps how to get that an
ENGINEERING ECONOMY RATE WILL BE GIVEN. WRITE THE COMPLETE SOLUTIONS/EXPLANATION LEGIBLY OR TYPEWRITTEN. GIVE STRAIGHT TO THE POINT EXPLANATION. A tire manufacturer produces tires at a variable cost of $25 per unit. The plant has annual sales of $480,000 at a price of $40 per unit. Find the breakeven point in units of production. The annual fixed costs for the plant are $150,000.
A firm is must choose to buy the GSU-3300 or the UGA-3000. Both machines make the firm's production process more efficient which in turn increases incremental cash flows. The GSU-3300 produces incremental cash flows of $25,025.00 per year for 8 years and costs $102,242.00. The ÚGA-3000 produces incremental cash flows of $27,530.00 per year for 9 years and cost $126,773.00. The firm's WACĆ is 8.37%. What is the equivalent annual annuity of the GSU-3300? Assume that there are no taxes.
4
Example A company is considering two types of equipment for its manufacturing plant. Pertinent data are as follows: Freeze Type A Type B First cost P200,000 P300,000 Annual Operating Cost P32,000 P24,000 D Annual Labor Cost P50,000 P32,000 Insurance and Property Taxes 3% 3% Payroll Taxes 4% 4% Estimated Life TO 10 If the minimum required rate of return is 15%, which equipment should be selected?
A firm is must choose to buy the GSU-3300 or the UGA-3000. Both machines make the firm’s production process more efficient which in turn increases incremental cash flows. The GSU-3300 produces incremental cash flows of $24,998.00 per year for 8 years and costs $99,590.00. The UGA-3000 produces incremental cash flows of $29,475.00 per year for 9 years and cost $126,038.00. The firm’s WACC is 8.32%. What is the equivalent annual annuity of the GSU-3300? Assume that there are no taxes.