Jennifer Ozman is a sales engineer at Montana Chemical Engineering Company. Jennifer owns two vehicles, and one of them is entirely dedicated to business use. Her business car is a small, used pickup truck, which she purchased with $11,000 of personal savings. On the basis of her own records and with data compiled by the U.S. Department of Transportation, Jennifer has estimated the costs of owning and operating her business vehicle for the first three years as given in the table below. If her interest rate is 7%, what should be Jennifer's reimbursement rate per mile so that she can break even? Click the icon to view the costs of owning and operating the business vehicle. Click the icon to view the interest factors for discrete compounding when i = 7% per year. The reimbursement rate should be $ per mile. (Round to the nearest cent.) X i More Info i More Info X Single Payment Equal Payment Series Compound Present Compound Sinking Present Capital First Year Second Year Third Year Amoun Worth Amount Fund Worth Recovery Depreciation $2.879 1,776 $1,545 Factor Facto Factor Factor Factor Factor Scheduled maintenance 100 153 220 (F/P, i, N (P/F, i, N 7A, i, N A/F, i, N) P/A, i, N A/P, i, N) Insurance 635 635 635 1.0700 0.9346 1.0000 1.0000 0.9346 1.0700 Registration and taxes 78 57 50 1.1449 0.8734 2.0700 0.4831 1.8080 0.5531 Total ownership cost 3,692 2,621 2,450 JAWN- 1.225 0.8163 3.2149 0.3111 2.6243 0.3811 Nonscheduled repairs 35 85 200 1.3108 0.7629 4.4399 0.2252 3.387 0.2952 Replacement tires 35 30 27 1.4026 5.7507 0. 1739 4. 1002 0.2439 Accessories 15 13 12 0.7130 Gasoline and taxes 688 650 522 1.5007 0.6663 7.1533 0. 1398 4.7665 0.2098 Oil 80 100 100 1.6058 8.654 0. 1156 5.3893 0. 1856 Parking and tolls 135 125 110 $988 $1,003 $971 1.7182 0.5820 10.2598 0.0975 5.971 0.1675 Total operating costs $3.624 10 00 - 1.8385 0.5439 11.9780 0.0835 6.5152 0.1535 Total of all costs $4,680 $3,42 14,500 13,00 11,500 1.9672 0.5083 13.8164 0.0724 7.0236 Expected miles driven 0.142 Print Done Print Doneplant engineer wishes to know which of two types of lightbulbs should be used to light a warehouse. The bulbs that are currently used cost $47.80 per bulb and last 14,300 hours before burning out. The new bulb (at $61.8 per bulb) provides the same amount of light and consumes the same amount of energy, but it lasts twice as long. The labor cost to change a bulb is $17.00. The lights are on 20 hours a day, 365 days a year. (Assume that the firm's marginal tax rate is 25%.) If the firm's MARR is 16%, what is the maximum price (per bulb) the engineer should be willing to pay to switch to the new bulb? Round the service life of the old bulb to the nearest whole number. Click the icon to view the interest factors for discrete compounding when i = 16% per year. The maximum price per new bulb the engineer should be willing to pay is $ . (Round to one decimal place.) 1 More Info X Single Payment Equal Payment Series Compound Present Compound Sinking Present Capital Amount Worth Amount Fund Worth Recovery Factor Factor Factor Factor Factor Factor F/P, i, N P/F, i, N F/A, i, N A/F, i, N P/A, i, N) A/P, i, N) 1.1600 .8621 1.0000 1.0000 0.8621 1.1600 1.3456 0.7432 2. 1600 0.4630 1.6052 1.623 UAW N - Z 1.5609 0.640 3.5056 0.2853 2.2459 0.4453 1.8106 0.5523 5.0665 0.1974 0.3574 2. 1003 0.4761 6.8771 0.1454 3.2743 ).3054 2.4364 0.4104 8.9775 0. 1114 3.6847 0.2714 2.8262 0.3538 11.4139 0.0876 4.0386 0.2476 3.2784 ).305 14.2401 0.0702 4.3436 0.230 3.8030 0.2630 17.5185 0.0571 4.6065 0.217 4.4114 0.2267 21.3215 0.0469 4.8332 0.2069Southern Environmental Consulting (SEC), Inc. designs plans and specifications for asbestos abatement (removal) projects in public, private, and government buildings. Currently, SEC must conduct an air test before allowing the occupancy of a building after the asbestos has been removed. SEC subcontracts air-test samples to a laboratory for analysis by transmission electron microscopy (TEM). To offset the cost of TEM analysis, SEC charges its clients $100 more than the subcontractor's fee. The only expenses in this system are the costs of shipping the air-test samples to the subcontractor and the labor involved in shipping the samples. With the growth of the business, SEC must consider either continuing to subcontract the TEM analysis to outside companies or developing its own TEM laboratory. Because of the passage of the Asbestos Hazard Emergency Response Act (AHERA) by the U.S. Congress, SEC expects about 1,000 air-sample tests per year over eight years. The firm's MARR is known to be 15%. Click the icon to view the description of alternatives Click the icon to view the interest factors for discrete compounding when MARR = 15% per year. (a) Determine the cost of an air-sample test by the TEM laboratory (in-house). The unit cost is $ . (Round to the nearest cent.) More Info X i More Info - X Single Payment Equal Payment Series Compound Present Compound sinking Presen Capital Amount Worth Amoun Fund Worth Recovery Subcontract option. The client is charged $400 per sample, which is $100 above Factor Factor Factor Factor the subcontracting fee of $300. Labor expenses are $1,500 per year, and shipping Factor Factor (F/P, i, N) (P/F, i, N "/A, i, N) (A/F, i, N) expenses are estimated to be $0.50 per sample. (P/A, i, N) A/P, i, N) 1.1500 TEM purchase option. The purchase and installation cost for the TEM is 1.1500 0.8696 1.0000 1.0000 0.8696 $415,000. The equipment would last for eight years, at which time it would have no 1.3225 0.7561 2. 1500 0.4651 1.6257 0.6151 salvage value. The design and renovation cost is estimated to be $9,500 and it is CAWN- 1.5209 0.6575 3.4725 0.2880 2.2832 0.4380 paid only once along with the installation cost. The client is charged $300 per 1.7490 0.571 4.9934 .200 2.8550 0.3503 One full-time manager and two part-time technicians are needed to operate the laboratory. Their combined annual 2.0114 0.4972 6.7424 3.3522 .298 salaries will be $50,000. Material required to operate the lab includes carbon rods, copper grids, filter equipment, and acetone. The costs of these materials are 2.3131 0.4323 8.7537 0.1142 3.7845 0.2642 estimated at $6,000 per year. Utility costs, operating and maintenance costs, and 2.6600 .3759 11.0668 0.0904 4.1604 0.2404 the indirect labor needed to maintain the lab are estimated at $18,000 per year. 3.0590 0.3269 13.7268 0.0729 4.4873 0.2229 The extra income-tax expenses would be $20,000. 3.5179 0.2843 16.7858 .059 4.771 0.2096 4.0456 0.2472 20.3037 0.0493 5.0188 0. 1993 Print Done Print Done