An oil refinery is willing to install a 60,000-lb/hour pump for $325,000 in 2020 when the pump index had a value of 500. the refinery must also install another pump of the same size in 2024. Economic data shows that the pump index is forecast to rise by 5% annually.
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An oil refinery is willing to install a 60,000-lb/hour pump for $325,000 in 2020 when the pump index had a value of 500. the refinery must also install another pump of the same size in 2024. Economic data shows that the pump index is
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- A company wants to renew its old natural gas fired boiler. According to the receivedprice offer, the new boiler is 400,000 TL in cash. The natural gas consumption of this boiler is 15m3/hour and the price of natural gas is 1.1 TL/m3. The annual real price escalation of natural gas is determined as 1%. The annual cost of the boiler operation and maintenance costs is 25,000 TL and the annual escalationvalue is 17%. By purchasing a new boiler, some of the costs of the old boiler will be saved. The old boiler has costs of 250,000 TL increasing by 15% annually. The new boiler will run for 6,000 hours a year. The annual discount rate is 24% and the annual inflation rate is 17%. Determine whether it is economically feasible to purchase the new boiler by using the annual worthmethod, taking into account the 10-year costs and savings. Use real ratesfor relevant parameters in calculations.United Pigpen is considering a proposal to manufacture high-protein hog feed. The project would make use of an existing warehouse, which is currently rented out to a neighboring firm. The next year's rental charge on the warehouse is $135,000, and thereafter, the rent is expected to grow in line with inflation at 4% a year. In addition to using the warehouse, the proposal envisages an investment in plant and equipment of $1.41 million. This could be depreciated for tax purposes straight-line over 10 years. However, Pigpen expects to terminate the project at the end of 8 years and to resell the plant and equipment in year 8 for $470,000. Finally, the project requires an immediate investment in working capital of $385,000. Thereafter, working capital is forecasted to be 10% of sales in each of years 1 through 7. Year 1 sales of hog feed are expected to be $4.90 million, and thereafter, sales are forecasted to grow by 5% a year, slightly faster than the inflation rate. Manufacturing costs…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)
- The present price (year 0) of kerosene is $4.30 per gallon, and its cost is expected to increase by 10% per year. (At the end of year 1, kerosene will cost $4.73 per gallon.) Mr. Garcia uses about 800 gallons of kerosene for space heating during a winter season. He has an opportunity to buy a storage tank for $600, and at the end of four years, he can sell the storage tank for $100. The tank has a capacity to supply four years of Mr. Garcia's heating needs. So, he can buy four years' worth of kerosene at its present price ($4.30), or he can invest his money elsewhere at 6% interest. Should he purchase the storage tank? Assume that kerosene purchased on a pay-as-you-go basis is paid for at the end of the year. (However, kerosene purchased for the storage tank is purchased now.)A semiconductor chip maker purchased a small manufacturing process plant for $2,131,020. The money coming in from that purchase was determined to be $500,000 annually in before-tax cash flow during its 10-year use. The net cash flow after tax is $300,000. If the chip maker wants to realize a 10% return on its investment after tax, for how many more years should the plant operate? (hint, tables)The price of coal in 2020 is $41 per ton. The annual inflation between 2020 and 2030 is expected to be 4.0%. The price of coal is assumed to escalate at an annual average rate of 4.7% 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?
- Due to inflation in Australia in December 2019, the price for petrol increased from AUD 1.35 to AUD 1.45. This caused petrol consumption to decrease from 2500 litres to 2450 litres at a 7-Eleven Petrol Station in Sydney. Also, when the price for Hyundai 7.5kW Inverter Split System Air Conditioner (Reverse Cycle) increased from AUD 950.00 to AUD 990.00; demand for these air conditioners fell from 2500 units to 2000 units. Following this condition, answer the questions below.i. Using the mid-point formula calculate the price elasticity of demand for petroland Hyundai 7.5kW Inverter Split System Air Conditioner (Reverse Cycle). ii. Is the price elasticity of demand: elastic, unit elastic or inelastic for eachcommodity (petrol and Hyundai 7.5kW Inverter Split System Air Conditioner (Reverse Cycle)? iii. Suppose the government decides to increase tax for petrol and Hyundai 7.5kWInverter Split System Air Conditioner (Reverse Cycle). Use two diagrams to explain the incidence of the tax…A company selling widgets has found that the number of items sold, x, depends upon the price, p at which 70000 they're sold, according the equation a = (0.6p + 1)? Due to inflation and increasing health benefit costs, the company has been increasing the price by $0.03 per month. Find the rate at which revenue is changing when the company is selling widgets at $3 each. Revenue is decreasing by dollars per month Hint: Give your answer as a positive value.MR is a manufacturer of industrial fridges, freezers, and air conditioners. In December, the productionplanner needs to submit a production plan to the plant manager for the next year. The aggregate forecast foreach quarter of next year is Q1: 14,800; Q2: 26,400; Q3: 35,000, and Q4: 19,200 units. The beginning inventoryin January is 0, and the year-end inventory in December of next year can be 0. It costs MR $24 to hold anappliance in inventory for one quarter. Shortages are undesirable. Assume that all shortage will be backordered, and that back-order cost is $100 per unit per quarter. There are 160 permanent workers who produce19,200 units per quarter. In busy quarters, workers can produce up to 9,600 additional units during overtime.Regular time labour cost is $60 per unit appliance and overtime labour cost is $83 per unit. MR can hire up to160 temporary workers for a second shift. Assume temporary workers have the same productivity and canproduce up to 19,200 units per quarter. A…
- Five years ago you invested $18,419 at a 5% market interest rate. If the inflation rate is 2%, what is the current constant dollar value of your investment?Shunda is a calculator assembly company, purchase a full set of the calculator parts, assembled into a calculator to sell in the market. In recent years, the price of the calculator has remained steady at 60 yuan/units, the basic data of the input and output of shunda in 2013are listed in the table below: Hourly wage is 6 yuan per hour, price of parts is 25 yuan per set, power consumption is paid by 0.6 yuan per watt, the extract depreciation of equipment is 3 yuan per hour, and Shunda spends fixed costs 10000 yuan per month to pay all of the regular fee According to the above data, is it possible to estimate the production function and cost function (TC, TVC, AC and AVC)?Consider a coal mining company that can mine coal this year or next year. As expected future profits increase, the extraction quantity this year: Decreases due to a lower user cost Increases due to a higher user cost Increases due to a lower user cost Decreases due to a higher user cost