Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I attached two questions. PLEASE solved it steps by steps for better understanding.So it will be convienent for me Please send me these two questions

image text in transcribed

I attached two questions. PLEASE solved it steps by steps for better understanding.So it will be convienent for me Please send me these two questions as soon as possible

image text in transcribedimage text in transcribed
Question No.3 (5+5+5 Marks) - CLO 3 a. UMME has three renewal energy alternatives are available for providing energy at a remote government research facility. Understand the impact of each alternative (economic solutions) and select which alternative is the best one with the interest rate of 10% over a 25-year study period Alternative 1 Alternative 2 Alternative 3 Initial Cost $1,00,000 $1,00,005 $1,00,050 Annual $500,00 $55,000 $62,000 maintenance cost Annual benefit $1,500,000 $2,000,000 $1,750,000 Salvage value $200,00 $200,100 $201,100 b. PAK Suzuki has three alternatives to build its showroom in Islamabad. Understand the impact of each alternative (economic solution) and select which alternative is the best one if the life expectancy is 25 year for all of the given alternatives with the interest rate of 10%. Annual benefit increases every year by 15% but in the last 6 years it decreases by 4%. 2 Alternative 1 Alternative 2 Alternative 3 Construction Cost $2,00,000,0 $2,00,005,0 $2,00,050,1 Annual maintenance cost $500,00,0 $600,00,0 $700,01,0 Annual benefit $1,500,000 $2,000,000 $1,750,000 Salvage value $200,00 $200,100 $201,100 c. Based on the data regarding the two vehicles given below. Understand the impact of depreciation of cost to calculate the cost of retaining a vehicle (Capital - recovery or Annual Equivalent cost) assuming an interest rate of 6% compounded annually. (MSRP: Manufacturer's suggested retail price) Percent of total Value Retained Type of Vehicle MSRP After 2 years After 3 years After 4 years After 5 years 2010 BMW M3 $58,400 70% 50% 51% 43% 2010 Hyundai-GLS $14,365 40% 30% 24% 18%Question No.1 (5+6 Marks) CLO 1,2 a. A person came to Lahore in search of his job. He has only $300 per month available for his accommodation (housing) for the coming year. He is determined that he can find his job in Lahore so he decided to live in Lahore. Describe all feasible alternatives for economic decision making of his housing. To help him, list ve feasible alternatives Three alternative designs have been created by DESCON engineers for a new machine that spreads balls from the bat in the cricket kit. Each machine design has unique total costs (xed and variable) based on the annual production rate of total kits. The costs for the three designs are given. \" 525.000 $20,000 >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Risk Management And Insurance

Authors: Scott E Harrington, Greg Niehaus

2nd Edition

0072339705, 9780072339703

More Books

Students also viewed these Economics questions

Question

When should you avoid using exhaust brake select all that apply

Answered: 1 week ago