You are the manager of a large​ crude-oil refinery. As part of the refining​ process, a certain heat exchanger​ (operated at high temperatures and with abrasive material flowing through​ it) must be replaced every year. The replacement and downtime cost in the first year is ​$175 comma 000175,000. This cost is expected to increase due to inflation at a rate of 77​% per year for sixsix years​ (i.e. until the EOY 77​), at which time this particular heat exchanger will no longer be needed. If the​ company's cost of capital is 1515​% per​ year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be​ eliminated?

Answers

Answer 1
Answer:

Answer:

The company could pay up to 866,965.89 dollars today to solve the current heat exchanger situation

Explanation:

We have to determinate the present value of 7 year annuity which increase at a rate of 7% when the cost of capital is 15% being the first quota 175,000 dollars

(1-(1+g)^(n)* (1+r)^(-n) )/(r - g)  

grow rate 0.07  

required return 0.15

Cuota 175,000

n 7

PV =  866,965.89  


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The Dahlia Medical Center has 30 labor rooms, 15 combination labor and delivery rooms, and 3 delivery rooms. All of these facilities operate around the clock. Time spent in labor rooms varies from hours to days, with an average of about a day. The average delivery requires about one hour in a delivery room. The average time in a combination labor-delivery room is about 24 hours. During an exceptionally busy three-day period, 109 healthy babies were born at Dahlia Medical Center. Sixty babies were born in separate labor and delivery rooms, and 45 were born in combined labor and delivery rooms. Which of the facilities (labor rooms, combination labor and delivery rooms, or delivery rooms) had the greatest utilization rate?
An investor can make an investment in a real estate development and receive an expected cash return of $45,000 at the end of six years. Based on a careful study of other investment alternatives, she believes that a 9 percent annual return compounded quarterly is a reasonable return to earn on this investment. How much should she pay for it today?
10-2. Why is the formal training of workers so important to most employers?
An analysis of equity of Hahn Corporation as of January 1, 2012, is as follows: Share capital—ordinary, par value P20; authorized 100,000 shares; issued and outstanding 90,000 shares P1,800,000 Share premium—ordinary 900,000 Retained earnings 760,000 Total P3,460,000 Hahn uses the cost method of accounting for treasury shares and during 2010 entered into the following transactions: Acquired 2,500 of its shares for P75,000. Sold 2,000 treasury shares at P35 per share. Sold the remaining treasury shares at P20 per share. Assuming no other equity transactions occurred during 2012, what should Hahn report at December 31, 2012, as total share premium?
Bryan Houlberg expects his C corporation to generate a profit of $200,000. What is Bryan's after-tax cash flow from the corporation if net income after corporate tax is distributed to him as a dividend and his marginal tax rate on ordinary income is 37%?

ne year ago, a U.S. investor converted dollars to yen and purchased 100 shares of stock in a Japanese company at a price of 3,150 yen per share. The stock's total purchase cost was 315,000 yen. At the time of purchase, in the currency market 1 yen equaled $0.00952. Today, the stock is selling at a price of 3,465 yen per share, and in the currency market $1 equals 145 yen. The stock does not pay a dividend. If the investor were to sell the stock today and convert the proceeds back to dollars, what would be his realized return on his initial dollar investment from holding the stock

Answers

Answer:

realized loss = -20.31%

Explanation:

stock price ¥3,150, total operation ¥315,000

in US dollars = ¥315,000 x $0.00952 = $2,998.80

current market price ¥3,465, total operation ¥346,500

in US dollars = ¥346,500 / ¥145 = $2,389.66

realized loss = (current value in US dollars - initial investment) / initial investment = ($2,389.66 - $2,998.80) / $2,998.80 = -20.31%

Even though the stock price increased significantly (10%), the yen depreciated against the dollar even more (-38%)

The conclusion of a response message should a. include familiar expressions such as "If I may be of further assistance, please don't hesitate to call me."
b. provide specifics if further action is required.
c. omit the sender's name to avoid legal liability.
d. avoid repeating the information provided or referring to its use.

Answers

Answer: b. provide specifics if further action is required.

Explanation:

In a response message, one must be cordial and seek to promote GOODWILL with a customer. This can be done by simply referring to any provided information, providing specifics if any further action is required and including the sender's full contact information. Naturally there must also be a tone indicating a willingness to help but not with such cliché phrases such as, " Call me if you need any help". Such responses do not fit well in well written conclusions.

Chun Hei is carrying out a marketing research study. Even after seeking all reasonable available secondary data sources, she has not been able to adequately answer the research questions. In such a situation, Chun Hei must collect ________ data. Multiple Choice cohort syndicated derived primary referential

Answers

Answer:

Primary data

Explanation:

Since the available secondary data are not sufficient for the marketing research study, Chun Hei must collect primary data.

Primary data unlike secondary data are data that were not in existence beforehand. Such a data can not be found in any journals, books, websites or data sites. To get primary data a researcher has to go into the field and they can collect these data through questionnaires, surveys or interviews. Chun Hei will get the information she needs from first hand sources.

Capital accumulation is the​ _____, including​ _____ capital. (A) development of new​ goods; financial (B) increase in​ firms' profits; financial (C) growth of real​ GDP; physical (D) growth of capital​ resources; human

Answers

Answer:

Option "B" and "D" are correct answer

  • Increase in firm's profit; financial
  • growth of capital resources; human

Explanation:

  • Capital accumulation relates to an investment or profit increase in assets and is one of the building blocks of a capitalist economy.
  • The goal is to increase the value of an initial cost, whether it is through appreciation, lease, investment income, or interest, as a return on investment.
  • Profit margin tests a firm's productivity by measuring its net income by overall sales. Organizations may grow their net profit margin by increasing profits, e.g. by providing additional goods or by raising prices.

The Destin Company has one temporary difference of $160 caused by accelerated tax depreciation on 12/31/14. The difference will reverse evenly over the next four years. Tax Rates are 20% in 2014, 30% in 2015, and 40% in 2016 and beyond. Pretax book income in 2014 is $1,000. What is 2014 Income Tax Expense?

Answers

Answer: = $168

Explanation:

Destin Company had a $1,000 income in 2014 but also a temporary difference of $160.

This means that they were taxed on the income less the temporary difference.

= 1,000 - 160

= $840

Tax Expense = 840 * 20%

= $168

I want to have a college fund for my daughter. She is 5, so I have 13 years to achieve my goal of $50,000. The bank says I can earn 2%. I have $5000 already set aside. How much do I need to contribute every year?

Answers

Answer:

$2960 yearly savings

Explanation:

From the values given and from mathematical manipulation, he or she needs a contribution of at least $2900 every year in order to achieve his goal of $50,000.

                     EXPLANATION

  • If the child is 5yr old now, in 13years time, she will be 18yr old.
  • $2950 target yearly

  • for the next 13years, it would have amount to $38350

  • remember the bank will give an annual interest rate of 2%
  • so for 13years, that's 26% = 0.26

  • In the 13th year, he would have saved $38350, add the 26% interest for the duration of 13years = 26% x $38350 + $38350 = $48321

  • His savings will fall between $2950 - $2960 yearly.

Final answer:

You will need to contribute approximately $2,615.97 each year to your college fund to achieve your goal of $50,000 in 13 years, starting with $5,000 and earning 2% interest compounded annually.

Explanation:

To calculate how much you need to contribute every year to have $50,000 in a college fund for your daughter in 13 years with an existing $5,000 at a 2% annual interest rate, we need to use the future value of an annuity formula:

The future value of an annuity formula is FV = P × {[(1 + r)^n - 1] / r}, where:

  • FV is the future value of the annuity (the amount we want to have in the future, which is $50,000).
  • P is the annual payment (the amount you will contribute every year).
  • r is the annual interest rate (which is 2%, or 0.02).
  • n is the number of years the money is deposited (13 years).

Since you already have $5,000, we first need to find out how much this amount will grow to in 13 years at an annual interest rate of 2%. That's calculated using the compound interest formula:$5,000(1 + 0.02)^{13} = $6,727.09

Now, subtract this future value of your initial savings from the goal:$50,000 - $6,727.09 = $43,272.91

This is the amount that needs to be reached with the annual contributions. Plugging this back into the future value of an annuity formula, we solve for P:$43,272.91 = P × {[(1 + 0.02)^{13} - 1] / 0.02}We can now solve for P, which is the annual contribution required:P = $43,272.91 / {[(1 + 0.02)^{13} - 1] / 0.02} = $2,615.97

Therefore, you'd need to contribute approximately $2,615.97 each year to reach your $50,000 college fund goal in 13 years, assuming a 2% annual rate.