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Softa [21]
3 years ago
7

You are the manager of a large​ crude-oil refinery. As part of the refining​ process, a certain heat exchanger​ (operated at hig

h 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?
Business
1 answer:
lubasha [3.4K]3 years ago
5 0

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

\frac{1-(1+g)^{n}\times (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 answer is<u> "depositors".</u>


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3 years ago
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Zanzabum

<u>Production</u> refers to the manufacturing process that includes the transformation of raw materials resulting in finished products.

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It is the supply chain phase that includes all the processes related to the creation and elaboration of the product.

That is, it includes the operations necessary for the transformation of raw materials into products and their mass production.

Therefore, we can conclude that production refers to the manufacturing process that includes the transformation of raw materials resulting in finished products.

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2 years ago
Jim works as a professional wrestler under the character name, "Headhunter Jim the Death Dealer". Jim can register his character
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The correct option is A. a certification mark.

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2 years ago
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Answer:

The correct answer is the second option: respond to prices; determines the price.

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