Question: answer these problems A pulp and paper company is evaluating whether it should retain the current bleaching process that uses chlorine dioxide or replace it

answer these problems

answer these problems A pulp and paper company is evaluating whether itshould retain the current bleaching process that uses chlorine dioxide or replaceit with a proprie- tary "oxypure" process. The relevant information for eachprocess is shown, Use an interest rate of 13% per year toperform the replacement study Current Process Oxypure Process Original cost 6 -450,000

A pulp and paper company is evaluating whether it should retain the current bleaching process that uses chlorine dioxide or replace it with a proprie- tary "oxypure" process. The relevant information for each process is shown, Use an interest rate of 13% per year to perform the replacement study Current Process Oxypure Process Original cost 6 -450,000 years ago, 5 Investment cost -700,00D now, $ Current market 35 000 value, $ Annual operating - INI,OOD -7070OD Sahage value, $ 50,DOD Remaining life, YearsThe annual worth values for a defender, which can be replaced with a similar used asset, and a chal. lenger are estimated. The defender should be re- placed: [a) Now (b) I year from now (c) 2 years from now () 3 years from now Number of AW Value, $ per Year Years Retained Defender Challenger -14,000 -21,000 OnC'EI- -16,900 -13,100 -17,000 -15 600 -18,000 - IT SOOIndira Industries is a major producer of diverter dampers used in the gas turbine power industry to divert gas exhausts from the turbine to a side stack, thus reducing the noise to acceptable levels for human environments. Normal production level is 60 diverter systems per month, but due to significantly improved economic conditions in Asia, production is at 72 per month. The following information is available Fixed costs FC = $2.4 million per month Variable cost per unit v = $35,000 Revenue per unit F = $75,000 (a) How does the increased production level of 72 units per month compare with the current breakeven point? (b) What is the current profit level per month for the facility? (c) What is the difference between the revenue and variable cost per damper that is necessary to break even at a significantly reduced monthly production level of 45 units, if fixed costs remain constant?As the price of gasoline goes up, people are will- ing to drive farther to fill their tank in order to save money. Assume you had been buying gasoline for $2.90 per gallon and that it went up to $2.98 per gallon at the station where you usually go. If you drive an F-150 pickup that gets 18 miles per gal- lon, what is the round-trip distance you can drive to break even if it will take 20 gallons to fill your tank? Use an interest rate of 8%6 per year. An automobile company is investigating the ad- visability of converting a plant that manufactures economy cars into one that will make retro sports cars. The initial cost for equipment conversion will be $200 million with a 20% salvage value anytime within a 5-year period. The cost of pro- ducing a car will be $21,000, but it is expected to have a selling price of $33,000 to dealers. The production capacity for the first year will be 4000 units. At an interest rate of 12% per year, by what uniform amount will production have to in- crease each year in order for the company to re- cover its investment in 3 years?\f

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