Contemporary Engineering Economics (6th Edition)
Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 6, Problem 40P
To determine

Calculate the annual cost of selecting ROT8.

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Two installations are being considered to provide for water storage in a chemical plant. A tank on a tower or a tank of equal capacity placed on a hill some distance from the plant. The cost of installing the tank and tower is estimated at P350,000. The cost of installing the tank on the hill, including the extra length of serv Two installations are being considered to provide for water storage in a chemical plant. A tank on a tower or a tank of equal capacity placed on a hill some distance from the plant. The cost of installing the tank and tower is estimated at P350,000. The cost of installing the tank on the hill, including the extra length of service lines, is estimated at P300,000. The hill installation will require an additional investment of P30,000 in pumping equipment whose life is estimated to be 15 years with a salvage value of P2,500. The life of the two installations is estimated to be 30 years. Annual cost of labor, electricity, and maintenance incident to the pumping…
Cafe x is selling coffee in three different sizes at the prices and costs shown in the first table below. As shown in the second table, they are considering raising the price of their small margin based on the estimated changes in cups sold. You may find it helpful to use a spreadsheet for the calculations. Current Prices Increased Price for Small Coffee Cafe X is selling coffee in three different sizes at the prices and costs shown in the first table below. As shown in the second table, they are considering raising the price of their small to $2.75, and they project that sales of smalls will go down while sales of mediums and larges will go up slightly. Fill out the tables below to calculate the projected change in gross margin based on the estimated changes in cups sold. You may find it helpful to use a spreadsheet for the calculations. Current Prices Price per Cup Cost per Cup Cups Sold Small $2.50 50.20 2,500 Medium $3.50 50.35 1,400 $0 Revenue $ 0 $ 0 Large $4.50 50.50 700 0 $ 0…
Tom is considering purchasing a £20,500 car. After five years, he will be able to sell the vehicle for £7,500. Petrol costs will be £2,100 per year, insurance £650 per year, and parking £550 per year. Maintenance costs will be £900, rising by £400 per year thereafter. The alternative is for Tom to take taxis everywhere. This will cost an estimated £7,000 per year. Tom will rent a vehicle each year at a total cost (to year-end) of £900 for the family vacation, if he has no car. If Tom values money at 12% annual interest, should he buy the car? Use an annual worth comparison method (Perform all calculations using 5 significant figures and round any monetary answers to the nearest dollar). The annual cost of operating an Auto is: Number The annual cost of using taxis as an alternative is: Which option should Tom take (enter either 'Auto' or 'Taxi'? Number
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