Hew teeth polishing machine for his dental clinic. He got quotations from three different companies (A, B, and C). The cash flow information for the three quotations listed in the Table below are based on the initial cost, installation, annual operating cost, annual revenue, annual maintenance, and salvage value. Use the direct solution method to calculate the interest rate for company C. Year Company. 1 Company B Company 0 -320,000 Dhs -360,000 Dhs -380.000 Dhs 0 285.000 Dhs 0 280 000 Dhs 0 0 750,000 Dhs 780,000 Dhs Table 1 USE DIRECT SOLUTION LOG METHOD Dok PIE Formula: a 10.67% b. 24.95% c 25.44% d. None of these options 31.50% 38.5% In connection with surfacing a new highway, a contractor has a choice of two sites on which to set up the asphalt mixing plant equipment. The contractor estimates that it will cost $1.5 per cubic meter per kilometer to haul a maximum of 45,000 m'asphalt paving material from the mixing plant to the job site in 4 months (From March to June, 122 days total and no break in weekends). The factors relating to the two site alternatives are (production costs at each site are the same): Site A Site B Cost Factor Average hauling distance Monthly rental of site 8 km 5 km $3580 S4598 Cost to set up and remove equipment S20275 S27890 Hauling expense $1.5 m -km $1.5 m -km Note: If site B is selected, there will be an added charge of $75 per day for a flagman &working for 12 hours in a day for a period of 122 days. Calculate the total cost involved in Site A & B and select any one of the following given below: SELECT THE CORRECT ANSWER a. Both Site A & Site B got almost equal amount of total cost. b. Site A cheaper than Site B Site B cheaper than Site A Cd. None of these options Hew teeth polishing machine for his dental clinic. He got quotations from three different companies (A, B, and C). The cash flow information for the three quotations listed in the Table below are based on the initial cost, installation, annual operating cost, annual revenue, annual maintenance, and salvage value. Use the direct solution method to calculate the interest rate for company C. Year Company. 1 Company B Company 0 -320,000 Dhs -360,000 Dhs -380.000 Dhs 0 285.000 Dhs 0 280 000 Dhs 0 0 750,000 Dhs 780,000 Dhs Table 1 USE DIRECT SOLUTION LOG METHOD Dok PIE Formula: a 10.67% b. 24.95% c 25.44% d. None of these options 31.50% 38.5% In connection with surfacing a new highway, a contractor has a choice of two sites on which to set up the asphalt mixing plant equipment. The contractor estimates that it will cost $1.5 per cubic meter per kilometer to haul a maximum of 45,000 m'asphalt paving material from the mixing plant to the job site in 4 months (From March to June, 122 days total and no break in weekends). The factors relating to the two site alternatives are (production costs at each site are the same): Site A Site B Cost Factor Average hauling distance Monthly rental of site 8 km 5 km $3580 S4598 Cost to set up and remove equipment S20275 S27890 Hauling expense $1.5 m -km $1.5 m -km Note: If site B is selected, there will be an added charge of $75 per day for a flagman &working for 12 hours in a day for a period of 122 days. Calculate the total cost involved in Site A & B and select any one of the following given below: SELECT THE CORRECT ANSWER a. Both Site A & Site B got almost equal amount of total cost. b. Site A cheaper than Site B Site B cheaper than Site A Cd. None of these options
