You are the manager of a large crude-oil refinery. As part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. The replacement and downtime cost in the first year is $160 comma 000. This cost is expected to increase due to inflation at a rate of 7% per year for five years (i. e. until the EOY 6), at which time this particular heat exchanger will no longer be needed. If the company's cost of capital is 18% per year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be eliminated?
Answers: 2
Other questions on the subject: Business
Business, 22.06.2019 01:00, jonzyjones3114
Bond x is noncallable and has 20 years to maturity, a 7% annual coupon, and a $1,000 par value. your required return on bond x is 10%; if you buy it, you plan to hold it for 5 years. you (and the market) have expectations that in 5 years, the yield to maturity on a 15-year bond with similar risk will be 9.5%. how much should you be willing to pay for bond x today? (hint: you will need to know how much the bond will be worth at the end of 5 years.) do not round intermediate calculations. round your answer to the nearest cent.
Answers: 3
Business, 22.06.2019 01:00, lin550
Throne technical university is looking for three people to work in its plant-biology laboratory. the hiring manager is finding that the most suitable job candidates live in other countries and are not willing to move to the city where the university is located. which situation is the university facing? a. lack of flexible workforce b. surpluses in labor talent c. an appearance of quota systems d. deficits in minimum wage demands
Answers: 1
Business, 22.06.2019 11:30, barn01
17. chef a says that garnish should be added to a soup right before serving. chef b says that garnish should be cooked with the other ingredients in a soup. which chef is correct? a. chef a is correct. b. both chefs are correct. c. chef b is correct. d. neither chef is correct. student c incorrect which is correct answer?
Answers: 2
Business, 22.06.2019 22:50, PinkyUSA18
Which of these makes a student loan different from other types of loans
Answers: 1
Do you know the correct answer?
You are the manager of a large crude-oil refinery. As part of the refining process, a certain heat e...
Questions in other subjects:
History, 19.07.2019 23:30
French, 19.07.2019 23:30
Spanish, 19.07.2019 23:30
Mathematics, 19.07.2019 23:30
