Aof private investors borrowed $34 million to build 200 new luxury apartments near a large university. The money was borrowed at 5% annual interest, and the loan is to be repaid in equal annual amounts over a 30-year period. Annualgroupoperating, maintenance, and insurance expenses are estimated to be $3,000 per apartment. This expense will be incurred even if an apartment is vacant. The rental fee for each apartment will be $11,000 per year, and the worst-case occupancyrate is projected to be 85%. Investigate the sensitivity of annual profit (or loss) to (a) changes in the occupancy rate and (b) changes in the annual rental fee.Click the icon to view the interest and annuity table for discrete compounding when the MARR is 5% per year......Complete the table below. (Round to the nearest thousands.)Occupancy Rate, $85%Rental Fee75%80%90%95%100%$5,000150160170180190200 Discrete Compounding; i= 5%Single PaymentCompoundUniform SeriesCompoundSinkingFundCapitalRecoveryFactorAmountPresentAmountPresentFactorWorth FactorFactorWorth FactorFactorTo Find FTo Find PTo Find FTo Find PTo Find ATo Find AGiven PGiven FGiven AGiven AGiven FGiven PFIPPIFFIAPIAAIFAIP11.05000.95241.00000.95241.00001.050021.10250.90702.05001.85940.48780.537831.15760.86383.15252.72320.31720.367241.21550.82274.31013.54600.23200.28201.27630.78355.52564.32950.18100.231061.34010.74626.80195.07570.14700.197071.40710.71078.14205.78640.12280.172881.47750.67689.54916.46320.10470.154791.55130.644611.02667.10780.09070.1407101.62890.613912.57797.72170.07950.1295111.71030.584714.20688.30640.07040.1204121.79590.556815.91718.86330.06280.1128131.88560.530317.71309.39360.05650.1065141.97990.505119.59869.89860.05100.1010152.07890.481021.578610.37970.04630.0963162.18290.458123.657510.83780.04230.0923172.29200.436325.840411.27410.03870.0887182.40660.415528.132411.68960.03550.0855192.52700.395730.539012.08530.03270.0827

Sensitivity analysis is used to find that when one factor changes then how does other dependent…

A group of private investors borrowed $34 million to build 200 new luxury apartments near a large university. The money was borrowed at 5% annual interest, and the loan is to be repaid in equal annual amounts over a 30-year period. Annual operating, maintenance, and insurance expenses are estimated to be $3,000 per apartment. This expense will be incurred even if an apartment is vacant. The rental fee for each apartment will be $11,000 per year, and the worst-case occupancy rate is projected to be 85%. Investigate the sensitivity of annual profit (or loss) to (a) changes in the occupancy rate and (b) changes in the annual rental fee. A Click the icon to view the interest and annuity table for discrete compounding when the MARR is 5% per year. Complete the table below. (Round to the nearest thousands.) Occupancy Rate, $ Rental Fee 75% 80% 85% 90% 95% 100% $5,000 150 160 170 180 190 200

A group of private investors borrowed $34 million to build 200 new luxury apartments near a large university. The money was borrowed at 5% annual interest, and the loan is to be repaid in equal annual amounts over a 30-year period. Annual operating, maintenance, and insurance expenses are estimated to be $3,000 per apartment. This expense will be incurred even if an apartment is vacant. The rental fee for each apartment will be $11,000 per year, and the worst-case occupancy rate is projected to be 85%. Investigate the sensitivity of annual profit (or loss) to (a) changes in the occupancy rate and (b) changes in the annual rental fee. A Click the icon to view the interest and annuity table for discrete compounding when the MARR is 5% per year. Complete the table below. (Round to the nearest thousands.) Occupancy Rate, $ Rental Fee 75% 80% 85% 90% 95% 100% $5,000 150 160 170 180 190 200

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

A certain firm has the capacity to produce 650,000 units of product per year. At present it is operating at 70% capacity. The firm's annual income is P7,860,000.00. Annual fixed cost is P3,820,000 and the variable costs are equal to P5.56 per unit of product. What is the firm's annual profit or loss and what volume of sales does the firm break even?
If specific duty is $2 per dozen and ad valorem duty is 20%, find the total duty on 12 dozen padlocks valued at $650.
The consultancy Imagination Inc. is working with its manufacturing client Parts-R-Us to improve their on-time performance. The firm can earn a bonus of up to $1,000,000 based on how much the on-time performance actually improves. It's current (baseline) on-time performance is 90%. The company typically completes approximately 1,000 orders per month, with approximately 100 orders delayed. The bonus payment is prorated according to the following criteria: · The on-time performance improvement is calculated based on a reduction in late events or an improvement in on-time performance. · No bonus is earned for the first 25% reduction in late events, say from 100 to 75. Maximum bonus is earned once Parts-R-Us achieves 95% on-time performance. Please answer the following: Write down a formula to determine the total bonus amount to be received Using your formula, show how much bonus would be paid if Parts-R-Us achieves 94% on-time performance.
A steam generation system at a biomass-fueled power plant uses an electrostaticprecipitator (ESP) to clean its gaseous effluents. The power plant has consistently made use ofthe same type of ESP over the past several years. The installed cost of a new ESP has beenrelatively constant at $100,000. Records of operation and maintenance expenses indicate thefollowing average expenses per year as a function of the age of the ESP. The MVs of the ESP arealso reasonably well known as a function of age. Data graph in image attached. Determine the best time to replace the ESP if the MARR is 15% per year.
The first cost of any property includes: the original purchase price and freight and transportation charges installation expenses initial taxes and permits fee all of the above
EVALUATE THE REQUIRED VALUE BASED ON THE GIVEN STANDARD NOTATION BD20,500 (A/P, 9%, 7) 2. BD590 (F/A, 5%, 10)
A Company wants to prioritize the efficiency and effectiveness of its company. On the advice of the Technical Manager, Naufal Fahmi, to save energy by installing a device that costs Rp. 200 million. The tool is estimated to provide savings of Rp. 10 million/year in the first 2 years, then increased to Rp. 12 million/year for the next 5 years, and Rp. 15 million in the following years. If the age of the tool is 10 years. If MARR=6% a. Create cashflow from this case b. Should this decision be made?
You are considering an investment project with the financial information provided below. Suppose the company is most concerned about the impact of its price estimate on the project's rate of return. How would you address this concern? The break-even value of unit price is ?
Assume a pool of 115 people in an insurance pool (a group of people insured through community rating). It is estimated that a small number in the pool will have significant pre- existing conditions as indicated in the table. Based on the age of these 115 people, the insurance company estimates the following distribution of health care claims (which includes necessary profit and administrative costs of the insurance company). Number of Insured Antidipated Heath Costs/Year/Person $1,400 $1,500 $1,600 $1,700 $1,800 $1,900 $2,000 $2,100 $2,200 $2.300 $2,400 $2,500 $2,700 $2,000 $2,900 $3,000 $3,100 $3.200 $3.300 $4,000 57,00 $10,000 Everyone joins the poal ad pays the necessary premum in the first year. The clams experience of the customers is faund to be generaly consstent with expeclations of the insurance company. A) What would be the premium In the third year if there is no inflation, based on the company's oxperience from the past year? B) If those customers who have anticipated…
PEFORMING ROR ANALYSIS FOR 3D PRINTER AND IIOT TECHNOLOGY Background Software used in 3D printer systems manufactured by Spectrum LASER Corp. is currently able to automatically develop hollows, shells, and "tree supports to save development time. Network printing for use on multiple machines and at different locations globally is available. New software, called JIT II, is being beta tested that will allow lloT-type (Industrial Internet of Things) connections between machines at distant locations. When onb oard monitoring sensors detect that a part is about to fail, or it is time to replace one of several high-profile parts, the JIT Il software will automatically queue the part's manufacturing code onto a 3D printer that is detected to be locally idle or ready. The company believes it can design and produce the JIT Il software, the 3D printers, and the accompanying computer equipment necessary to place this technology in a wide variety of harsh environments-chemically toxic to humans,…
A perfume company manufactures a single product having a cost of OMR 1.50 per unit. Fixed cost is OMR. 30,000 per annum. The market is such that up to 40,000 units can be sold at a price of OMR 3.00 per unit, but any additional sale must be made at OMR 2.00 per unit. Company has a planned profit of OMR 50,000. 1. What is the revenue at breakeven point? 2. What is the number of units at breakeven point? 3. How many units must be made and sold?
Problem 05.024 Alternative Comparison - Different Lives You and your partner have become very interested in cross-country motorcycle racing and wish to purchase entry-level equipment. You have identified two alternative sets of equipment and gear. Package K has a first cost of $250,000, an operating cost of $5,500 per quarter, and a salvage value of $30,000 after its 2-year life. Package L has a first cost of $170,000 with a lower operating cost of $3,500 per quarter and an estimated $25,000 salvage value after its 4-year life. Which package offers the lower present worth analysis at an interest rate of 8% per year, compounded quarterly? The present worth of package K is $[ and that of package L is $[ (Click to select) offers the lower present worth.