You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for manufacturing high-pressure hydraulic hoses. The parameters associated with each alternative have been estimated. Which one should be selected on the basis of a present worth comparison at an interest rate of 13% per year? Why is yours the correct choice? Alternative Y First Cost Maintenance cost, per Year $-45,000 $-70,000 $-15000 $-6000 Salvage Value Life $2,000 5 years $8,000 5 years The present worth of alternative X is $ and that of alternative Y is $ Alternative X is selected by the company.

What is cpj

Activity 3.5.2.

Problem 9-25 Fudge factors An oil company executive is considering investing $10.1 million in one or both of two wells: well 1 is expected to produce oil worth $3.01 million a year for 10 years; well 2 is expected to produce $2.01 million for 15 years. These are real (inflation-adjusted) cash flows. The beta for producing wells is 0.91. The market risk premium is 9%, the nominal risk-free interest rate is 7%, and expected inflation is 3%. The two wells are intended to develop a previously discovered oil field. Unfortunately there is still a 21% chance of a dry hole in each case. A dry hole means zero cash flows and a complete loss of the $10.1 million investment. Ignore taxes and make further assumptions as necessary. a. What is the correct real discount rate for cash flows from developed wells? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Real discount rate b. The oil company executive proposes to add 20 percentage points to the…

A. For what values of x is f(x) NOT y 00 6 4 2 X -3-2-10 1 2 3 4 5

Answer Question 4

What about requirement 4+5

How about Question D and E?

4+1?

D nctions Question 10 Use the diagram below to find each of the following: sine of point a • cose of point b • tane of point c d e