ENG-6203 - Engineering Economincs oed answer key
Showing 61 to 79 of 79 total answers.
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Awesome StudentQuestion • Engineering Economincs
A company issued 100 bonds of P1,000 face value each, redeemable at par at the end of 15 years to accumulate the funds required for redemption The firm established a sinking fund consisting of annual deposits, the interest rate of the fund being 4% What was the principal in the fund at the end of 12th year?
Answer
F=P75,041
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Awesome StudentQuestion • Engineering Economincs
A proposed manufacturing plant will require a fixed capital investment of P8,000,000 and an estimated working capital of P1,500,000 Annual depreciation is estimated to be 8% of fixed capital investment If the annual profit is P2,000,000, determine the rate of return on the total investment and minimum payout period
Answer
Rate of Return (ROR)=2105%>8%
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Awesome StudentQuestion • Engineering Economincs
A company has a production capacity of 500 units per month and its fixed costs are P250,000 a month The variable costs per unit are P1, 150 and each unit can be sold for P2,000 Economy measures are instituted to reduce the fixed costs by 10 per cent and the variable costs by 20 per cent Determine the new break-even point
Answer
To break-even (new): x = 208 units per month
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Awesome StudentQuestion • Engineering Economincs
The ore of a gold mine in the Mountain Province contains, on the average, 05 gram of gold per ton Method A of processing cost P1,650 per ton and recovers 93% of the gold while Method B costs only P1,500 per ton and recovers 81% of the gold If gold can be sold at P8,500 per gram, how much will be the net profit for method A?
Answer
The net income of Method A is P2,30250
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Awesome StudentQuestion • Engineering Economincs
The ore of a gold mine in the Mountain Province contains, on the average, 05 gram of gold per ton Method A of processing cost P1,650 per ton and recovers 93% of the gold while Method B costs only P1,500 per ton and recovers 81% of the gold If gold can be sold at P8,500 per gram, how much will be the net profit for method B?
Answer
The net income of Method B is P1,94250
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Awesome StudentQuestion • Engineering Economincs
An initial investment of P2,000,000 was put up for a new business that will produce an annual revenue of P1,250,000 for 5 years and will have a salvage value of P200,000 Annual expenses for its operation and maintenance will amount to P300, 000If money is worth 12%, show by computation if this business is profitable or not using ROR Method
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Awesome StudentQuestion • Engineering Economincs
An initial investment of P20,000,000 was put up for a new business that will produce an annual revenue of P12, 000,000 for 15 years and will have a salvage value of P2, 000,000 Annual expenses for its operation and maintenance will amount to P6, 000, 000If money is worth 12%, show by computation if this business is profitable or not using ROR Method
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Awesome StudentQuestion • Engineering Economincs
An initial investment of P4, 000, 000 was put up for a new business that will produce an annual revenue of P2, 500, 000 for 5 years and will have a salvage value of P400, 000 Annual expenses for its operation and maintenance will amount to P600, 000Taxes and maintenance will cost 4% of the initial cost If money is worth 12%, show by computation if this business is profitable or not using ROR Method
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Awesome StudentQuestion • Engineering Economincs
A Mechanical Engineer who was awarded a P450 00000 contract to install the machineries of an oil mill failed to finish the work on time As provided for in the contract, he has to pay a daily penalty equivalent to one-fourth of one per cent per day for the first 10 days and 05% per day for the next 10 days and one per cent per day for everyday thereafter If the total penalty was P60 75000, how many days was the completion of the contract delayed?
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Awesome StudentQuestion • Engineering Economincs
A contractor can purchase a dump truck for P850, 000 It is estimated that if sold at the end of 7 years it will have a value of P100, 000 Its estimated annual maintenance cost is P12, 000 and daily operating expenses are estimated to be P320 including the wage of the driver It is also possible to hire a similar unit for P1200 a day, including fuel cost If money is worth 10%, how many days a year must the dump truck be used to justify the purchase of the truck
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Awesome StudentQuestion • Engineering Economincs
Refer to the paragraph for the questions below A cement grinding mill with a capacity of 50 tons per hour utilizes forged steel grinding balls costing P12,000 per ton, which have a wear rate of 100 grams per ton cement milled Another cement mill of the same capacity uses high chrome steel grinding balls costing P50,000 per ton with wear rate of 20 grams per ton cement milled Determine the more economical grinding mill, considering other factors to be the sameFor Mill A:
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Awesome StudentQuestion • Engineering Economincs
Refer to the paragraph for the questions belowA cement grinding mill with a capacity of 50 tons per hour utilizes forged steel grinding balls costing P12, 000 per ton, which have a wear rate of 100 grams per ton cement milled Another cement mill "B" of the same capacity uses high chrome steel grinding balls costing P50, 000 per ton with wear rate of 20 grams per ton cement milled Determine the more economical grinding mill, considering other factors to be the sameSelection:
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Awesome StudentQuestion • Engineering Economincs
Refer to the paragraph for the questions belowA cement grinding mill with a capacity of 50 tons per hour utilizes forged steel grinding balls costing P12, 000 per ton, which have a wear rate of 100 grams per ton cement milled Another cement mill "B" of the same capacity uses high chrome steel grinding balls costing P50, 000 per ton with wear rate of 20 grams per ton cement milled Determine the more economical grinding mill, considering other factors to be the sameFor Mill B:
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Awesome StudentQuestion • Engineering Economincs
Refer to the paragraph for the questions belowA cement grinding mill "A" with a capacity of 50 tons per hour utilizes forged steel grinding balls costing P12, 000 per ton, which have a wear rate of 100 grams per ton cement milled Another cement mill "B" of the same capacity uses high chrome steel grinding balls costing P50, 000 per ton with wear rate of 20 grams per ton cement milled Determine the more economical grinding mill, considering other factors to be the sameFor Mill A:
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Awesome StudentQuestion • Engineering Economincs
Refer to the paragraph for the questions belowA cement grinding mill "A" with a capacity of 50 tons per hour utilizes forged steel grinding balls costing P12, 000 per ton, which have a wear rate of 100 grams per ton cement milled Another cement mill "B" of the same capacity uses high chrome steel grinding balls costing P50, 000 per ton with wear rate of 20 grams per ton cement milled Determine the more economical grinding mill, considering other factors to be the sameFor Mill B:
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Awesome StudentQuestion • Engineering Economincs
A machine part to be machined may be made either from an alloy of aluminum or steel There is an order for 8000 units Steel costs P380 per kg while aluminum costs P870 per kg If steel is used, the steel per unit weighs 110grams, for aluminum, 30 grams When steel is used, 50 units can be produced per hour, for aluminum, 80 units per hour with aid of tool costing P640, which will be useless after the 8,000 units are finished The cost of the machine and the operator is P1080 per hour How much is the cost per unit if steel is used?
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Awesome StudentQuestion • Engineering Economincs
A machine part to be machined may be made either from an alloy of aluminum or steel There is an order for 8000 units Steel costs P380 per kg while aluminum costs P870 per kg If steel is used, the steel per unit weighs 110grams, for aluminum, 30 grams When steel is used, 50 units can be produced per hour, for aluminum, 80 units per hour with aid of tool costing P640, which will be useless after the 8,000 units are finished The cost of the machine and the operator is P1080 per hour How much is the cost per unit if aluminum is used?
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Awesome StudentQuestion • Engineering Economincs
Refer to the paragraph below to answer the questionAn executive receives an annual salary of P600, 000 and his secretary a salary of P180, 000 A certain task can be performed by the executive working alone in four hours If he delegates the task to his secretary wit will require him 30 minutes to explain the work a d another 45 minutes to check the work Due to the unfamiliarity of the secretary to do the task, it takes her an additional time of 6 hours after being instructed Considering salary cost only, determine the cost of performing the task by each method, if the secretary works 2400 hours a year and the executive 3000 hours a yearCost of performing the task:Secretary working with executive
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Awesome StudentQuestion • Engineering Economincs