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postnew [5]
3 years ago
14

Two alternate plans are available for increasing the capacity of existing water transmission lines between an unlimited source a

nd a reservoir. The unlimited source is at a higher elevation then the reservoir. Plan A calls for the construction of a parallel pipeline and flow by gravity. Plan B specifies construction of a booster pumping station. Estimated cost for the two plans are as follows: Hint: Use Present Worth- (do not guess show all your work) i=10%
Plan A : Cost $700,000, Life 40 Years, Annual Operation and Repair $1,000/Year
Plan B: Cost $200,000, Life 40 Years Structure and 20 years equipment, Equipment replacement at the end of 20 years $75,000, Annual Operation and Repairs 52,000/year
a. Plan A $709,779.00
b. Plan A $740,000
c. Plan B $710,165.50
d. Plan B $326,000
Business
1 answer:
alexira [117]3 years ago
3 0

Answer:

plan a

Explanation:

present worth of plan A= 700000+1000(p/a,10%,40)

= 700000+1000*9.779

= 700000+9779

= 709779 dollars

present worth of plan b = 200000+75000(p/f,10%,20)+52000/year(p/a,10%,40)

= 200000+75000*0.1486+52000*9.779

= 719653 dollars.

we compare the  pw of both a and b, from the solutions above, the present worth of plan a is smaller than that of plan b, so the best option is plan a, <u>$709,779.00</u>

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<h3>What is Administrative Trade Policies?</h3>

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<h3>What is Trade policy ?</h3>

Trade policy is the set of agreements, regulations, and practices by a government that affect trade with foreign countries. Each nation determines its own standards for trading, including its tariffs, subsidies, and regulations.

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6 0
2 years ago
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Jeffries Corporation's Operating Income from the two products is <em>A. ​$35,000.</em>

The operating income is the difference between the revenue and operating costs (variable and fixed costs).

Data and Calculations:

                             Product A     Product B     Total

Revenue                 $18.00           $21.00

Variable cost            14.00              13.00

Contribution            $4.00             $8.00

Fixed costs                                                 $143,000

Total sales units                                            35,600

Sales mix                  3                        1               4

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Thus, the operating income is $35,000.

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sergiy2304 [10]

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6 0
3 years ago
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