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

solve these problems:-

solve 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, YearsNano Technologies intends to use the newest and finest equipment in its labs. Accordingly, a senior engineer has recommended that a 2-year-old piece of precision measurement equipment be replaced immediately. This engineer believes it can be shown that the proposed equipment is economi- cally advantageous at a 10% per year return and a planning horizon of 3 years. (a) Perform the replacement analysis using the annual worth method for a specified 3-year study period. (bj Determine the challenger's capital recovery amount for the 3-year study period and the expected full life. Comment on the effect made by the 3-year study period. Current Proposed Original purchase price, 5 OD'DE- Current market value, $ 17,DO0 Remaining life, years S 15 wimated value in 3 years, $ 9000 20 00 salvage value atber 15 years, $ 5.000 Annual operating cost, $ per year -8.000 -3,000We continue with the progressive example of possibly replacing a kiln at B&T Enterprises. A marketing study revealed that the improving business activity on the west coast implies that the revenue profile between the installed kiln (PT) and the proposed new one (GH) would be the same, with the new kiln possibly bringing in new revenue within the next couple of years. The president of B&T decided it was time to do a replacement study. Assume you are the lead engineer and that you previously completed the ESL analysis on the challenger (Exam- ple 11 3) It indicates that for the GH system the ESL is its expected useful life. Challenger: ESLA = 12 years with total equivalent annual cost AW= $-12.32 million The president asked you to complete the replacement study, stipulating that, due to the rapidly rising annual operating costs (AOC), the defender would be retained a maximum of 6 years. You are expected to make the necessary estimates for the defender (PT) and perform the study at a 15%% per year retum.Use the PW method at 8%% per year to select up to three projects from the four available omes if no more than $20,000 can be invested. Estimated lives and annual net cash flows vary. Initial Net Cash Flow. 5 per Year Project Investment S -5,060 1,600 1,300 1,860 2,500 2000 900 950 1,000 1,050 10,500 4000 3,000 1,000 500 500 2000 -10 050 0 17,600 Charlie's Garage has $70,000 to spend on new equipment that may increase revenue for his car repair shop. Use the PW method to determine which of these independent investments are finan- cially acceptable at 6%% per year, compounded monthly. All are expected to last 3 years Installed Estimated Added Feature Cost. $ Revenue, 5 per Month Diagnostics system -45,000 2200 Exhaust analyzer -30,00 2000 Hyleid engine tester -22,000 1500For the last 2 years, The Health Company has experienced a fixed cost of $850,000 per year and an (r - v) value of $1.25 per unit for its multivitamin line of products. International competition has become severe enough that some financial changes must be made to keep market share at the current level. (a) Perform a spreadsheet-based graphical anal- ysis to estimate the effect on the breakeven point if the differen etween revenue and variable cost per unit somewhere between 1% and 15% of its current value. (b) If fixed costs and revenue per unit remain at their current values, what type of change must take place to make the breakeven point go down? (This is an extension of Problem 13.15) Expand the analysis performed in Problem 13.15 by chang- ing the variable cost per unit. The financial man- ager estimates that fixed costs will fall to $730,000 when the required production rate to break even is at or below 600,000 units. What happens to the breakeven points over the (r - v) range of 1%: to 13%% increase as evaluated previously

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