Installation at municipal sewage-treatment plant

Assignment Help Financial Management
Reference no: EM131605859

Two 180-horsepower (HP) motors are being considered for installation at a municipal sewage-treatment plant. The first costs $5,800 and has an operating efficiency of 77%. The second costs $4,400 and has an efficiency of 74%. Both motors are projected to have zero salvage value after a life of 10 years. If all the annual charges, such as insurance maintenance, etc., amount to a total of 18% of the original cost of each motor, and if power costs are a flat five cents per kilowatt-hour, how many minimum hours of full-load operation per year are necessary to justify purchasing the more expensive motor at i=6% (A conversion factor you might find useful is 1 HPequals=746 wattsequals=0.746 kilowatts.)

Reference no: EM131605859

Questions Cloud

Calculate economic ordering quantity : What is Novelty Medical Pacemakers' current total annual inventory cost? Calculate the economic ordering quantity (EOQ).
Determine the cost of equity financing for company : Paul Sharp is CFO of Fast Rocket Inc. He tries to determine the cost of equity financing for his company.
What is the bond yield to maturity : What is the bond's yield to maturity?
What will the waccs be for each division : Suppose your firm has decided to use a divisional WACC approach to analyze projects. What will the WACCs be for each division?
Installation at municipal sewage-treatment plant : Two 180-horsepower (HP) motors are being considered for installation at a municipal sewage-treatment plant.
Assuming they file as married jointly-use standard deduction : Assuming they file as married jointly and use the standard deduction, what is Price S. Wright and May B. Wright’s 2017 tax owed?
What is the depreciation expense in year one : What is the Depreciation Expense in year one? What is the Operating Cash Flow in year two for this project?
What is the crossover rate between project : What is the Net Present Value of project E if the cost of capital is 12%? What is the Crossover Rate between Project B and C?
Cost of common equity financing using gordon model : Last year the Black Water Inc. paid dividends $2.83. Calculate the cost of common equity financing using Gordon Model.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd