Question
Nippon Steel’s expenses for heating and cooling a large manufacturing facility are expected to increase according...
Nippon Steel’s expenses for heating and cooling a large manufacturing facility are expected to increase according to an arithmetic gradient beginning in year 2. If the cost is $550,000 this year (year 0) and will be $550,000 again in year 1, but then it is estimated to increase by $58,000 each year through year 12, what is the equivalent annual worth in years 1 to 12 of these energy costs at an interest rate of 14% per year? The equivalent annual worth is determined to be $
Answers
We need to calculate Equivalent Annual worth in years 1 to 12 which is
= r(NPV)/{1-(1+r)^-n}
Year Cost Discount rate @ 14% NPV 1 550000 0.877193 482456.1404 2 608000 0.769468 467836.2573 3 666000 0.674972 449531.0298 4 724000 0.59208 428666.1208 5 782000 0.519369 406146.2955 6 840000 0.455587 382692.7001 7 898000 0.399637 358874.3156 8 956000 0.350559 335134.4564 9 1014000 0.307508 311813.0541 10 1072000 0.269744 289165.3638 11 1130000 0.236617 267377.6358 12 1188000 0.207559 246580.2137 Total 4426273.583 Equivalent Annual worth = 0.14(4426273.583)/[1-(1+0.14)^-12]
= 619678.3017/(1-0.207559)
= 619678.3017/0.792441
= $ 781986.7747
Similar Solved Questions
1 answers
Negative Correlation - HMWK
Which of the following combinations of investments would provide the firm with the highest negative correlation?A textiles firm and retail firmB telecommunications firm and internet firmC soft drink manufacturer and healthcare firmD airline co. and gasoline manufacturer...
1 answers
This Question: 2 pts Aquality control technician selected a simple random sample of 1500 tablets of...
This Question: 2 pts Aquality control technician selected a simple random sample of 1500 tablets of a n al supplement being produced at a company's manufacturing facility. The average weight of the tablets from this sample was a miligrams The technician knows from past losting that the standard ...
1 answers
Estimated total machine-hours used Estinated total fixed manufacturing overhead Estinated variable manufacturing overhead per nachine-hour Holding...
Estimated total machine-hours used Estinated total fixed manufacturing overhead Estinated variable manufacturing overhead per nachine-hour Holding Fabrication Total 2,500 1,500 4, eee $13,258 $16,95€ $38.200 $ 2.78 $ 3.50 Direct materials Direct labor cost Actual Machine-hours used: Molding Fab...
1 answers
1) Lisa is choosing between three alternatives: a) talking to her grandmother which she values at...
1) Lisa is choosing between three alternatives: a) talking to her grandmother which she values at 30 dollars; b) writing a term paper which she values at 40 dollars; or c) going out with a friend, which she values at 50 dollars. The opportunity cost of writing the term paper is:??? Please explain yo...
1 answers
If the half life of an isotope is 6 days and 120 grams of the isotope...
If the half life of an isotope is 6 days and 120 grams of the isotope is initially available, how many grams of the isotope remains after 30 days? 0.94 grams 7.5 grams 3.75 grams 1.87 grams...
1 answers
Please help I have been sick thank you Simplify. 2) 576 49 2) Use a calculator...
please help I have been sick thank you Simplify. 2) 576 49 2) Use a calculator to approximate to three decimal places 3) ^/0.000251 3) Identify the radicand. 4) x 4) X + For the given function, find the indicated function value. 5) For go+, find g(-9 5)...
1 answers
Which signs or symptoms reported by the pregnant woman should be reported to the healthcare provider?...
Which signs or symptoms reported by the pregnant woman should be reported to the healthcare provider? Select all that apply A. Continuous pounding headache B. swelling in ankles and feet C. swelling in face D. frequent burning sensation in the epigastric region E. escape of fluid from the vagiina...
1 answers
Three questions. Thanks 1. One long wire carries current 12.0 A to the left along the...
Three questions. Thanks 1. One long wire carries current 12.0 A to the left along the x axis. A second long wire carries current 80.0 A to the right along the line (y = 0.280 m, z = 0). (a) Where in the plane of the two wires is the total magnetic field equal to zero? (b) A particle with a charge of...
1 answers
Draw the structural formula for: a) butyraldehyde b) acetone c) hexanai a)2-methyl-3-pentanone
Draw the structural formula for: a) butyraldehyde b) acetone c) hexanai a)2-methyl-3-pentanone...
1 answers
The main reason for greater efficiency and wealth creating power stems from the shareholders' rolls as:...
The main reason for greater efficiency and wealth creating power stems from the shareholders' rolls as: a)residual risk bearers b)potential scapegoats c)residual tranche payees d)potential debt collectors QUESTION 5 Shareholders provide a critical resource needed by b...
1 answers
Jurvin Enterprises is a manufacturing company that had no beginning inventories. A subset of the transactions...
Jurvin Enterprises is a manufacturing company that had no beginning inventories. A subset of the transactions that it recorded during a recent month is shown below. Exercise 3-2 (Algo) Prepare T-Accounts [LO3-2, LO3-4] Jurvin Enterprises is a manufacturing company that had no beginning inventories....
1 answers
Rrent-mirror-loaded 8.79 A cu transistors hav gain is realized? NMOS differential amplifier is te...
Please solve in details and in a clear way. rrent-mirror-loaded 8.79 A cu transistors hav gain is realized? NMOS differential amplifier is ted in a technology for which |VAl 5 Vum. All the e L = 0.5 μ m. If the differential-pair transistors t V. -0.25 V, what open-circuit differential rrent...
1 answers
E Glenn's Cleaning Services Company is experiencing cash flow problems and needs a loan. Glenn has...
E Glenn's Cleaning Services Company is experiencing cash flow problems and needs a loan. Glenn has a friend who is willing to lend him the money he needs provided she can be convinced that he will be able to repay the debt. Glenn has assured his friend that his business is viable, but his friend...
1 answers
On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a...
On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,150,000. During 2021, costs of $2,060,000 were incurred, with estimated costs of $4,060,000 yet to be incurred. Billings of $2,572,000 were sent, and cash collected was...
1 answers
A. Calcium is normally present at a concentration of about 0.1g/L. Calculate the Eq/L of Ca+...
A. Calcium is normally present at a concentration of about 0.1g/L. Calculate the Eq/L of Ca+ in the plasma (the atomic weight of calciumis 40). B. If it requires 7 drops of silver nitrate in procedure step 4d to tern the urine sample color from yellow at amber, what is choloride concentration, expre...
1 answers
[5pt] A test consists of 20 multiple choice problems, each with 5 choices. What is the...
[5pt] A test consists of 20 multiple choice problems, each with 5 choices. What is the probability of a student being correct 14 or more by guessing? Use the normal distribution to approximate the desired probability.?...
1 answers
Can't solve part D. (6%) Problem 16: You give a crate of mass = 1.00 ke...
Can't solve part D. (6%) Problem 16: You give a crate of mass = 1.00 ke an initial speed of #4.00 up an incline of The crate the slides along the incline, reaches a spring of spring constant ke 55 N/ml and compresses the spring by ASH 150 cm before stopping crs along the in that the crate as...
1 answers
Beam, Steel design 4 Defermine the unbraced lenath at which inelastic torso 51 buc Klin9ocr brs...
Beam, Steel design 4 Defermine the unbraced lenath at which inelastic torso 51 buc Klin9ocr brs for anese...
1 answers
Ilings ReviewView Normal Case Study Assignment Instructions: Please complete the following two case studies Each ca...
ilings ReviewView Normal Case Study Assignment Instructions: Please complete the following two case studies Each case study is worth 5 points. Please don't exceed more than 3 pages in total for both case studies. Please send your answers as a Microsoft Word file iust like any other assignment. C...