Dumps the aqueous based effluent

Assignment Help Managerial Economics
Reference no: EM13883527

Problem: An effluent disposal contractor is considering entering the recycled field. At present he incinereates and organic waste containing recoverable solvents and dumps the aqueous based effluent containing acids and metals. After marketing and technical studies he has four possible processes. Process A is solvent recovery by distillation, B is hydrochloric acid recovery, C is copper oxide recovery, and D is copper and nickel metal recovery. Either process C or D could be built. Details of the alternatives are tabulated below with the relevant data.

 

A

B

C

D

Capacity (ton/yr)

7000

5000

1000

1000

FCI ($)

240000

90000

150000

350000

OC (excluding Depreciation ($/ton )

170

10*

260*

670*

Average product value ($/ton)

200

25

300

800

Plant life

8

9

6

7

*These are reduced by 10% if the solvent recovery plant is not built as the heat from the incinerator may be utilized.

Which plant or plants should the contractor build? Comment on the validity of your conclusions and indicate what other factors may influence his decision.

ASSUME   No Salvage value

                   50% tax rate

                   No working capital

                   im = 0.2

USE   Straight-line depreciation

Reference no: EM13883527

Questions Cloud

Assignment on business intelligence and data warehouses : Business Intelligence and Data Warehouses
Summarise gmp requirements for clinical trial material : summarise GMP requirements for clinical trial material
Amazon recognize revenue for the entire sales price : 1.Assume that Amazon.com sells the MacBook Pro, a computer brand produced by Apple. Amazon arranges its operations such that customers receive products from Apple Stores rather than Amazon.
Stephen plans to purchase car seven years from now : Stephen plans to purchase a car 7 years from now. The car will cost $38,643 at that time. Assume that Stephen can earn 3.43 percent (compounded monthly) on his money. How much should he set aside today for the purchase?
Dumps the aqueous based effluent : An effluent disposal contractor is considering entering the recycled field. At present he incinereates and organic waste containing recoverable solvents and dumps the aqueous based effluent containing acids and metals.
What is the ethnic breakdown of your neighborhood : Incorporate statisitics/key dates into this. For example, in a paragraph about the people in your neighborhood, incorporate census info (how many people actually live there, for example? What's the ethnic breakdown of your neighborhood
Journal entries to show the proper recording of revenue : Create the journal entry or entries to show the proper recording of revenue (this may require more than on journal entry). Create the subsequent journal entry to show spending of the funds.
With the warrants attached the bonds : Thomson Engineering is issuing new 10-year bonds that have 20 warrants attached. If not for the attached warrants, the bonds would carry a 9% interest rate. However, with the warrants attached the bonds will pay a 7% annual coupon and still sell for ..
Planning operations master role placement : Planning Operations Master Role Placement

Reviews

Write a Review

Managerial Economics Questions & Answers

  The effectiveness of discretionary fiscal policy

What factors determine the effectiveness of discretionary fiscal policy?

  Impact of disaster on products price

Say there is a natural disaster which wipes out all of tomato plantation of one country. so there is a drastic increase in the price say from $6 to $15 a kilo

  Discuss the practical application of price elasticity

What is production function and its uses? Explain the two types of production functions - Discuss the practical application of Price elasticity and Income elasticity of demand - What is production function and its uses? Explain the two types of produ..

  What is the marginal rate of transformation impact

What is the labor-intensive good and what is the Marginal Rate of Transformation impact?

  1 present your data in a table showing the names of the

1. present your data in a table showing the names of the variables. make sure the full definitions and sources of each

  Predict the potential effects of such pricing strategies on

From the scenario, determine to the importance of predicting the pricing strategies of rival firms in an industry characterized by mutual interdependence. Provide a rationale for your response. Examine the common price setting strategies of airlines ..

  Examine one real-world event or recent news story

Examine one real-world event or recent news story from the last 12 months that you believe demonstrates the topics covered in this course. Predict how this event ties to the new learning in the course. Formulate an opinion and defend your position ab..

  Does either firm have a dominant strategy

Stella Ann Freeman is having a difficult time deciding whether or not to purchase a new car. How would understanding the concept of opportunity costs help her make a decision?

  What type of cost-output relationship

Statistically significant in explaining variations in the average operating expense ratio - what type of cost-output relationship (e.g., Linear, quadratic or cubic) is sugg ested by these statistical results?

  Find marginal cost of the firm

The following questions refer to a company, whose manager recently estimated its average variable cost function to be;

  Does boeing exhibit economies of kale in producing jets

The president of a small firm has been complaining to the controller about rising labor and material costs. However, the controller notes that the average costs have not increased during the past year. Is it possible?

  Explain whether you agree with the managers reasoning

Suppose Dell is currently selling 250,000 Pentium 4 laptops permonth. A manager at Dell argues, "The last 10,000 laptops weproduced increased our revenue by $8.5 million and our costs by$8.9 million

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd