Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Q3- Dear could you solve this question step by step What report is used to describe a companys financial position at the end of

Q3- Dear could you solve this question step by step

" What report is used to describe a companys financial position at the end of a reporting period? Briefly describe its contents."

from this book: Contemporary Engineering Economics (6th Edition)

(6th Edition)book link:

https://uploadfiles.io/8a95

(4th Edition)book link: https://drive.google.com/file/d/0Bz4IwUNPjmuRbUp6M2RvbU9DMUE/view?usp=sharing or https://uploadfiles.io/8409

Question link:

//d2vlcm61l7u1fs.cloudfront.net/media%2Fe94%2Fe94971f5-06c7-487b-95c2-3453aa3fed00%2Fphp0yucnZ.png

Thanks

image text in transcribed

1. What are the common types of Engineering Economic Decisions? Give an example of each. Briefly describe the fundamental principles of Engineering Economics. 8. I 8 If the interest rate is 8% compounded continuously, what is the required quarterly payment to repay a loan of $10,000 in five years 2. What is the minimum amount of positive cash flow required in year 6 for you to be indifferent to doing the project. 9. You are considering two types of machines for a manufacturing process Money Flow 4000 3000 2000 1000 Machine A has a first cost of $75,000 and its salvage value at the end of 6 ycars of estimated service life is $20,000. The operating cost of this machine are estimated to be $6,000 per year. Extra income taxes are estimated at $2400 per year Machine B has a first cost of $40,000 and its salvage value at the end of 6 years of estimated service life is estimated to be negligible. The annual operating cost will be 11,000. e Compare these two mutually exclusive alternatives by the present worth method ar 1-13% 10, How many years will it take an investment to triple if the interest rate of 8% compounded annually.5. You are the CEO of Blue and Gold Furniture Company (a small household goods manufacturing firm) and have just been briefed on some promising new production machinery which will enable 3D printing of numerous types of personalized furniture. ear6 Year Year 6 Year 7 1000 2000 3000 4000 5000 Projected cash flows detailed below. The 3D printer has a 5 year life cycle, with no scrap value. Discuss your assessment of this project's viability and profitability. Calculate net cash flow for each year, payback period, total return on investment, internal rate of return, and net present worth. State any assumptions (i.c. Minimal attractive rate of return). Explain your reasoning behind those assumptions Money Flow RevenueCapital ear 3. What report is used to describe a company's financial position at the end of a reporting period? Briefly describe its contents Expenditures $10,000,000 Initial Investment 4. You have just purchased 1000 shares of stock at S70 per share. Your analysis indicates that the stock price will increase 10% per year. How much will your investment be worth in 5 years? When will the market price have doubled? Assume no dividend payments for this calculation. 2016 2017 2018 2019 2020 $4,250,000 $250,000 $5,100,000 $100,000 S10,100,000 $100,000 $ 11,500.000 500,000 $11,000,000 5. Suppose you make an annual contribution of S5000 to your investment account at the end of each year for 5 years. If the account earns 10% annually, how much can be withdrawn early in the 11th year. EXTRA CREDIT (up to 10 additional points) 6. What will be the amount accumulated by each of these present investments? a. $5000 in 7 years at 7% compounded annually b, $7250 in 15 years at 8% compounded quarterly c, $9000 in 30 years at 6% compounded monthly d, $12000 in 8 years at 5% compounded continuously There is much debate over whether or not fast food restaurants could bear the impacts of an increase from a $7.25/hour to a $15/hour minimum wage. In the context of this class, evaluate the statement: "If McDonalds were to double the salaries and benefits of all of its employees, from the CEO down to the minimum wage cashiers, it would still only cost an extra 68 cents for a Big Mac." What information would you need to perform this analysis? What assumptions would you have to make? Without having the data readily available, do you believe it is a true statement? How about if the minimum wage tripled? Would that change your answer? (Keep your answer less than two pages.) 7. If a bank advertises a savings account that pays a 7% nominal interest rate compounded continuously, what is the effective annual percentage rate

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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