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Sloan [31]
3 years ago
9

North Dakota Electric Company estimates its demand trend line​ (in millions of kilowatt​ hours) to​ be:

Business
1 answer:
Karolina [17]3 years ago
6 0

Answer:

90.3 ; 157.4 ; 176.9 ; 79.9

Explanation:

Given that:

Estimated demand trend line (in millions of kilowatt hour) for North Dakota Electricity company is :

D​ = 80.0 ​+ 0.45​Q,

Q = quarter number

Quarter Factor​ (Index)

Winter 0.72

Spring 1.25

Summer 1.40

Fall 0.63

In year 26​ (quarters 101-104):

Energy use (E) for each quarter = (Demand * quarter factor)

Winter ; Q = 101

E = [80.0 ​+ 0.45​(101)] * 0.72 = 90.3

E = [80.0 ​+ 0.45​(102)] * 1.25 = 157.4

E = [80.0 ​+ 0.45​(103)] * 1.40 = 176.9

E = [80.0 ​+ 0.45​(104)] * 0.63 = 79.9

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Explanation:

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3 0
3 years ago
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0            $3,18,000.00    1.0000                 $3,18,000.00

1              $ 8,700.00   0.8726                 $7,591.62

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3 $      8,700.00           0.6644 $      5,780.50

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0              $2,47,000.00       1.0000                    $2,47,000.00

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PV of Cash Outflow     $1,60,459.86

So the machine cost would be purchased as it lower the cost by $13,406.17

5 0
3 years ago
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