Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 11, Problem 24P
(a):
To determine
Calculate the net cash flow.
(b):
To determine
Calculate the present worth without inflation.
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The price of coal in 2020 is $58 per ton. The annual inflation between 2020 and 2030 is expected to
be 5.6%. The price of coal is assumed to escalate at an annual average rate of 7.1% as a result of
resource depletion (i.e., this escalation is independent of inflationary effects).
What is the price of coal in the year 2030, expressed in 2000 dollars?
(your answer must be rounded-off to the nearest dollars per billion joules, i.e., no decimal places)
Assume this is January 2019.
You’re running a Wine company that has 80% domestic sales and 20% export sales as measured by shipped bottles.
Of the domestic sales, 50% is sold via the restaurant channel, 30% is sold to supermarket chains.
You production capacity for this year 2019 is for 100,000(Q) bottles (from grapes processed in 2018) if you bottle this already this year. This wine is currently kept in wine casks (տակառ)․ If aged the wine will be more valuable. Land, cellar and casket capacity has been fixed since the establishment of your château.
These are prices received (P) and costs per bottle (AC) per sales channel:
Domestic Restaurant channel: Price – 3300AMD, Total Cost (AC) – 1900AMD
Domestic Retail/supermarket channel: Price – 3600AMD, Total Cost – 1900AMD
Export channel: Price – 13USD, Total Cost (incl. shipment) – 4100AMD
Current exchange rate is 485AMD per 1 USD
In 2018 economy grew 7% in real, inflation adjusted terms. For 2019 expectations of economic performance…
Manitowac Crane is a US company that exports heavy crane equipment to several Chinese dock
facilities. Sales are currently 150 units per year at the yuan equivalent of $24,000 each. The yuan
currently trades at 6.35 yuan per dollar, but you predict it will fall to 7 yuan per dollar soon and stay
there the entire year. Assume direct unit costs are 75% of the original US sales price in either
scenario. Calculate gross profits in dollars if you raise the yuan price to offset the devaluation
(keeping the dollar price the same) and suffer a 15% drop in volume.
Chapter 11 Solutions
Contemporary Engineering Economics (6th Edition)
Ch. 11 - Prob. 1PCh. 11 - Prob. 2PCh. 11 - Prob. 3PCh. 11 - Prob. 4PCh. 11 - Prob. 5PCh. 11 - An annuity provides for 10 consecutive end-of-year...Ch. 11 - Prob. 7PCh. 11 - Prob. 8PCh. 11 - Prob. 9PCh. 11 - Prob. 10P
Ch. 11 - Prob. 11PCh. 11 - Prob. 12PCh. 11 - Prob. 13PCh. 11 - Prob. 14PCh. 11 - Prob. 15PCh. 11 - Prob. 16PCh. 11 - Prob. 17PCh. 11 - Prob. 18PCh. 11 - Prob. 19PCh. 11 - Prob. 20PCh. 11 - Prob. 21PCh. 11 - Prob. 22PCh. 11 - Prob. 23PCh. 11 - Prob. 24PCh. 11 - Prob. 25PCh. 11 - Prob. 26PCh. 11 - Prob. 27PCh. 11 - Prob. 28PCh. 11 - Prob. 29PCh. 11 - Prob. 30PCh. 11 - Prob. 31PCh. 11 - Prob. 1STCh. 11 - Prob. 2STCh. 11 - Prob. 3ST
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