Engineering Economics

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5. Total return on an investment. - Calculate the annualized, compounded rate of return for the following investment: purchase price $65,000; sale price $850,000; holding period 30 years.


16.19 Software and hardware for optimizing cell design of robotic picking lines have an installed cost of $78,000 with no residual value after 5 years. For years 2 and 4, use DDB book depreciation to determine (a) the depreciation charge, and (b) the book value.


Cannon Precision Instruments makes an automatic electronic flash with Thyrister circuitry. The estimated marginal profit associated with producing and selling these electronic flashes is P'(x) = -0.0025 x + 20 dollars per unit per month,when the production level is x units per month. Calculate the estimated profit earned on the 500th electronic flash. Show your work!


3. Appropriate leadership style to implement, taking into consideration the need to increase employee commitment to the firm. And reason


) This month your vendor invoiced $31,500 in testing charges for your production run. The unit cost for testing is twice as much for each of the first 400 units per month as compared to each unit over 400. If we shipped 500 units to the vendor this month, find: (a) Average cost per unit; (b) Cost per unit below the price break point; (c) Marginal cost for the 650th unit.


Rank the product lines from lowest to highest in terms of manufacturing cost per unit. Total indirect costs of$10.8 million are allocated based on total direct cost. ) 1-2-3-4 3-1-2-4 ) 3-2-1-4 3-4-1-2


Accounting Concepts 1. List and explain the 9 steps in carrying out accounting process. 2. Using the steps outlined above, illustrate the preparation of the following over a 12-month period: XYZ Ltd is formed January 2018, with capital of $1,000 deposited to the bank. Monthly the company has rent of $50, people overheads $12, Utilities $5, Depreciation on equipment purchase for $200 in the amount of 20% using the straight-line method, Other costs for fees and permits. There are monthly sales of the widgets it produces through its virtual manufacturing operations of $500 and the direct materials and direct labour are $200 and $50 respectively. a. Annual production Budget b. Prime cost and monthly cost of goods sold C. Cash book entry for first two months of start-up. d. Journal entry for first 3 months e. Statement of Income and expenditure (12 months) f.Balance sheet (12 months)


Let two data sets (Xi,Yi) and (xị,yi) be related by xị = c1 + c2x¡ and y = c3 + c4Yi for all i = 1,..,n. This means that the only differences between the two data sets are the location and the scale of measurement. Such data transformations are often applied in economic studies. For example, Yi may be the total variable production costs in y; maybe the total variable production costs in dollars of a firm in month i and y; the total production costs in million of dollars. Then c3 are the total fixed costs (in millions of dollars) and c4 = 10^-6. \text { (a) Suppose that } y_{i} \& x_{i} \text { satisfy the linear relation } y_{i}=\alpha+\beta x_{i} \forall i=1, \ldots, n \text { . Show } \text { that this implies that the relationship between } y_{i}^{*} \& x_{i}^{*} \text { is } y_{i}^{*}=\alpha^{*}+\beta^{*} x_{i}^{*} \text { with } \alpha_{i}^{*}=c_{3}+c_{4} \alpha-\frac{\beta c_{1} c_{4}}{c_{2}} \quad \& \quad \beta^{*}=\frac{\beta c_{4}}{c_{2}}


)TC = 40Q - 2Q² + 400 According this please calculate VC (Q = 2)a) 80 a) 80 b) 200 c) 72 d) 30 e) none of above


1. Car purchase. - Assume that you want to buy a car 2 years from now. Based on the following data, calculate: a) Monthly savings to get the down payment. b) Monthly payment on the 4-year loan after buying the car. Note: Use months & monthly rates to solve this problem. Data: Price of the car $20,000. Required down payment 20%. Interest rate on savings 8% (annual). Interest rate on the car loan 12% (annual).


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