Reference no: EM13297007
A Company is considering two alternative methods of producing a new product. The relevant data concerning the alternatives are presented below. Alternative 1: Initial Investment $50,000, Annual Receipts $36,000, Annual disbursements $16,000, Annual depreciation $12,000, Expected Life 5 years, Salvage Value $0 Alternative 2: Initial Investment $110,000, Annual Receipts $50,000, Annual disbursements $10,000, Annual depreciation $16,000, Expected Life 7 years, Salvage Value $0 At the end of the useful life of whatever equipment is chosen, the product will be discontinued. The company's tax rate is 50 percent, and its cost of capital is 11 percent. Calculate the Net Present Value of each alternative. Answer a. $4,276 ; $11,123 b. $9,136 ; $21,936 c. $13,236 ; $22, 577 d. $913.60 ; $2,193.60
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Explain what is the specific heat of aluminum
: thermal equilibrium is reached, the temperature of the aluminum sample plus water mixture is 29.4 degrees C. What is the specific heat of aluminum
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Calculate the speed at impact on a large rock
: A large rock became visible to a driver at a distance of 175 ft. Assuming a perception-reaction time of 0.8s, an initial speed of 42 mph, a coefficient of friction equal to 0.5, and a level roadway, calculate the speed at impact.
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Explain if an intractable emulsion is produced
: Why is NaHCO added to the freshly brewed tea, prior to extraction with CH?Cl. If an intractable emulsion is produced during extraction of caffeine, how might you attempt to break up the emulsion
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Calculate the speed of the car at the onset of skidding
: A car collided with a telephone pole and left 20 ft skid marks on the dry pavement. Based on the damages sustained, an engineer estimated that the speed at collision was 15 mph. If the roadway had a +3% grade, calculate the speed of the car at the..
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Calculate the net present value of each alternative
: At the end of the useful life of whatever equipment is chosen, the product will be discontinued. The company's tax rate is 50 percent, and its cost of capital is 11 percent. Calculate the Net Present Value of each alternative.
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Determine was the pavement wet or dry
: The driver of a car traveling up a 2% grade at an initial speed Vo applied the brakes abruptly and the vehicles slid to a complete stop at an average deceleration of 8 ft/s^2. Was the pavement wet or dry
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Explain how is the number of unpaired valence electrons
: How is the number of unpaired valence electrons in an atom related to the number of bonds that the atom can form
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What is the final charge on the capacitor
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Calculate bear earnings per share for next year
: Calculate Bear's Earnings Per Share for next year assuming the firm raises $60 Million of new debt at an interest rate of 9 percent Answer a. $2.54 b. $22.54 c. $1.69 d. $16.95
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