| Question | Chem-Tex Chemical is considering two additives for improving the dry-weather stability of its low-cost acrylic paint. Additive A has a first cost of $110,000 and an annual operating cost of $60,000. Additive B has a first cost of $175,000 and an annual operating cost of $35,000. If the company uses a 3-year recovery period for paint products and a of 20% per year, which process is economically favored? Use an incremental ROR analysis. |
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| Subject | business-economics |
Order the answer to: Chem-Tex Chemical is considering two additives for improving the
Order the answer to: The Texas Department of Transportation (TxDOT) is considering tw
| Question | The Texas Department of Transportation (TxDOT) is considering two designs for crash barriers along a reconstructed portion of 1-10. Design 2B will cost $3 million to install and $135,000 per year to maintain. Design 4R will cost $3.7 million to install and $70,000 per year to maintain. Calculate the rate of return and determine which design is preferred if TxDOT uses a of 6% per year and a 20-year project period. |
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| Subject | business-economics |
Order the answer to: Konica Minolta plans to sell a copier that prints documents
| Question | Konica Minolta plans to sell a copier that prints documents on both sides simultaneously, cutting in half the time it takes to complete big commercial jobs. The costs associated with producing chemically treated vinyl rollers and fiber-impregnated rubber rollers are shown below. Determine which of the two types should be selected by calculating the rate of return on the incremental investment. Assume the company’s is 21% per year. (Solve by hand and/or spreadsheet, asinstructed.) |
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| Subject | business-economics |
Order the answer to: As groundwater wells age, they sometimes begin to pump sand
| Question | As groundwater wells age, they sometimes begin to pump sand (and they become known as “sanders”), and this can cause damage to downstream desalting equipment. This situation can be dealt with by drilling a new well at a cost of $1,000,000 or by installing a tank and self-cleaning screen ahead of the desalting equipment. The tank and screen will cost $230,000 to install and $61,000 per year to operate and maintain. A new well will have a pump that is more efficient than the old one, and it will require almost no maintenance, so its operating cost will be only $18,000 per year. If the s are estimated at 10% of the first cost, use a present worth relation to (a) Calculate the incremental rate of return (b) Determine which alternative is better at a of 6% per year over a 20-year study period. |
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| Subject | business-economics |
Order the answer to: Specialty Gases & Chemicals manufactures nitrogen trifluoride, a
| Question | Specialty Gases & Chemicals manufactures nitrogen trifluoride, a highly specialized gas used as an industrial cleansing agent for flat panels installed in laptop computers, televisions, and desktop monitors. The incremental cash flow associated with two alternatives for chemical storage and handling systems (identified as P3 and X3) has been calculated in $1000 units. Determine (a) The rate of return on the incremental cash flows (b) Which one should be selected if the company’s is 25% per year? Alternative X3 requires the larger initial investment. |
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| Subject | business-economics |
Order the answer to: Several high-value parts for NASA’s reusable space exploration v
| Question | Several high-value parts for NASA’s reusable space exploration vehicle can be either anodized or powder-coated. Some of the costs for each process are shown below: The incremental AW cash flow equation associated with (powder coat – anodize) is 0 = – 14,000(A/P, i, 3) + 5000 + 2000(A/F, i, 3) What is (a) The first cost for anodizing, (b) The annual cost for powder coating, (c) The resale (salvage) value of the anodized parts? |
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| Subject | business-economics |
Order the answer to: Standby power for pumps at water distribution booster stations c
| Question | Standby power for pumps at water booster stations can be provided by either gasoline-or diesel-powered engines. The costs for the gasoline engines are as follows: First cost, $ ………………………. – 150,000 Annual M&O, $ per year …… –41,000 , $ ……………….. 23,000 Life, years ………………………… 15 The incremental PW cash flow equation associated with (diesel – gasoline) is 0 = – 40,000 + 11,000(P/A, i, 15) + 16,000(P/F, i, 15) Determine the following: (a) First cost of the diesel engines (b) Annual M&O cost of the diesel engines (c) of the diesel engines |
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| Subject | business-economics |
Order the answer to: The tabulation of the incremental cash flows between alternative
| Question | The tabulation of the incremental cash flows between alternatives A and B is shown on the next page. Alternative A has a 3-year life and alternative B a 6-year life. If neither alternative has a , what is (a) The first cost of alternative A (b) The first cost of alternative B? 0 ……….. –20,000 1 ……….. 5,000 2 ……….. 5,000 3 ……….. 12,000 4 ……….. 5,000 5 ……….. 5,000 6 ……….. 5,000 |
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| Subject | business-economics |
Order the answer to: For the alternatives shown, determine the sum of the incremental
| Question | For the alternatives shown, determine the sum of the incremental cash flows for Q ??P |
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| Subject | business-economics |
Order the answer to: Prepare a tabulation of incremental cash fl ows for the
| Question | Prepare a tabulation of incremental cash fl ows for the two machine alternativesbelow. |
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| Subject | business-economics |
