Today (year 0), a new 7-megawatt (MW) solar panel farm is constructed at a direct cost of $10 million. The indirect cost of 10% of the direct cost was spent. Four years from today, a smaller 6-MW solar farm will be added to the existing farm. The cost indices of today and after 4 years are 400 and 600 respectively. If the cost-capacity factor is 0.75 for solar panel construction, what is the estimated total capital investment (direct indirect) for the smaller 6-MW farm

Answers

Answer 1
Answer:

Answer:

14.70 m

Explanation:

The computation of estimated total capital investment (direct indirect) for the smaller 6-MW farm is shown below:-

Cost of 6MW plant = Cost of 7MW today × (Index today ÷ Index in past) × (Capacity of 6MW plant ÷ Capacity of 7MW plant )^Cost capacity factor

= = 1.1 × 10m × (600 ÷ 400) × (6 ÷ 7)^0.75

= 14.6985

or

= 14.70 m

So, for computing the cost of 6MW plant we simply applied the above formula.


Related Questions

The management of Kabanuck Corporation is considering dropping product V41B. Data from the company's accounting system appear below:Sales $939,000Variable expenses $413,500Fixed manufacturing expenses $525,500Fixed selling and administrative expenses $353,000All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $215,500 of the fixed manufacturing expenses and $126,500 of the fixed selling and administrative expenses are avoidable if product V41B is discontinued.What would be the effect on the company's overall net operating income if product V41B were dropped?
A bond has a modified duration of 8 and a price of 112,955 calculated using an annual effective interest rate of 6.4%. EMAC is the estimated price of this bond at an interest rate of 7.0% using the first-order Macaulay approximation EMOD is the estimated price of this bond at an interest rate of 7.0% using the first-order modified approximation Calculate EC EMOD A. 91 B. 102 C. 116 D. 127 E. 143
The Manufacturing Overhead account shows debits of $30,000, $24,000, and $28,000 and one credit for $86,000. Based on this information, manufacturing overhead: not been applied. shows a zero balance. has been underapplied. has been overapplied.
When other things remain equal, buyers are expected to stock up from the normal product that they expect its market price to decline significantly in the soon future.a) trueb) false
Consider two markets: the market for coffee and the market for hot cocoa·The initial equilibrium for both markets is the same, the equilibrium price is $4.50, and the equilibrium quantity is 31.0. When the price is $9.75, the quantity supplied of coffee is 73.0 and the quantity supplied of hot cocoa is 101.0. For simplicity of analysis, the demand for both goods is the same. Using the midpoint formula, calculate the elasticity of supply for hot cocoa. Please round to two decimal places Supply in the market for coffee is O a.more elastic than supply in the market for hot cocoa O b. the same elasticity as supply in the market for hot cocoa. c. There is not enough information to tell which has a higher elasticity. d. less elastic than supply in the market for hot cocoa.

A company’s past experience indicates that 60% of its credit sales are collected in the month of sale, 30% in the next month, and 5% in the second month after the sale; the remainder is never collected. Budgeted credit sales were: Ch7_Q181 The cash inflow in the month of June is expected to be $282,500. $213,750. $225,000. $270,000.

Answers

Answer:

$213,250

Explanation:

The calculation of cash inflow is shown below:-

                    Expected cash collections

                       For the month of June

Months       Sales              Percentage     Expected collections

April           $282,500        5%                    $14,125

May            $213,750         30%                  $64,125

June           $225,000        60%                 $135,000

Total collection in the month of June        $213,250

Here we assume Sales for April$282,500, May $213,750 and June $225,000.

Please ignore the last value as it is not relevant to the question

The Lebanese steel factory “STEEL CO” was the leader in its market for many years. Today, the management noticed that sales are decreasing since the market prices are dropping down due to unbeatable offers and discounts from other companies operating in the market for more than 20 years ago.The management decided to use “Analytical Power” (software) to analyze the market by collecting data online via Internet from many websites and saving this data on large servers. As a result, “Steel Co.” decided to change its production line to manufacture steel products only to luxurious villas and residential homes, located in high level areas of Lebanon. This strategy helped the company to sell targeted customers at higher prices making higher revenues. The new system includes a Website allowing customers to select online the designs they wish, and even to customize the products based on quality, colors, styles, etc…
Case Questions (6 points each)

1)What is the force according to Porter’s competitive forces model, faced by the company? *
Customers
Suppliers
New market entrant
Traditional competitor

2)What is the information system strategy (or strategies) used by the company to face the forces? *

Focus on market niche
Focus on market niche & Low cost leadership
Focus on market niche & Customer intimacy
Product differentiation & Customer intimacy

3)What are the main IT components mentioned in this case? *
a) Software / Telecommunications / Physical facilities
b) Hardware / Software.
C) Software / Telecommunications / Hardware
d) Telecommunications / Software

4)If the company is not sure which IS strategy to use in order to face the competitive forces, which model may best help in this case? *
Porter competitive forces
Value chain
Porter strategies
Economic impacts

5)To which type of system the “Analytical Power” software belongs? *
DSS
ESS
MIS
TPS

Answers

Answer:

1.) Traditional competitor

2.) Product differentiation & Customer intimacy

3.) C

Software / Telecommunications / Hardware

4.) Value chain

5.) ESS

Explanation:

1.) The company was aware of its competitors' marketing strategies and pricing to any changes made. Rivalry among competitors tends to be cutthroat and industry profitability low while having the potential factors.

3.) An information system is essentially made up of five components hardware, software, database, network and people. These five components integrate to perform input, process, output, feedback and control. Hardware consists of input/output device, processor, operating system and media devices.

4.) Value chain is the process or activities by which a company adds value to an article, including production, marketing, and the provision of after-sales service.

5.) An Executive Support System (ESS) is software that allows users to transform enterprise data into quickly accessible and executive-level reports, An ESS enhances decision making for executives. ESS is also known asExecutive Information System (EIS).

Answer 1):

The correct option here is D) Traditional Competitors

Explanation:

The five forces of competition when analyzed they help a business understand the factors in its external environment. It is also helpful in crafting a strong business strategy that increases the chances of the company to win over its competition in the market.

If sales were declining due to very mouth-watering offers from other companies who are over 20 years in the industry, then the force Lebanese Steel Factory has to contend with is Traditional Competitors.  

Answer 2)  

The correct option here is C)  

Explanation:

The information system deployed by Lebanese Steel Factory helped them to identify a niche area in the market which is the ability to customize product requests. By doing this, the demonstrated a kind of empathy for what the customer wants.  

Their new system allowed customers to order for steel in a way no company in the market was doing it.  

Answer 3)

The correct option her is B) Hardware/Software

Explanation:

There is no mention of telecommunications which is a technology that enables one to communicate via radio frequency over a long distance.

The "Analytical Power" however is a software. Softwares require hardware (that is a computer which may or may not be remote) to run.

Answer 4)

The correct option here is C) Porters Strategies

Explanation:

There are generic strategies identified by Michael Porter that a business can adopt to beat the competition. They are:

Cost Leadership, Differentiation and Focus strategies.

Answer 5)

The correct option here is C) MIS

Explanation:

MIS stands for Management Information System.

This is often used to refer to any computerized system that enables one to acquire data, process data into usable information, store both the data and information and generate reports based on such information for use in decision making by the management.

Cheers!

Winnwbagel corp. currently sells 25,200 motor homes per year at 37,800 each, and 10,080 luxury motor coaches per year at $71,400 each. The company wants to introduce a new portable camper to fill out its product line., it hopes to sell 15,960 of these campers per year at $10,080 each. An independent consultant has determined that if the company introduces the new campers, it should boost the sales of its existing motor homes by 3,780 units per year, and reduce the sales of its motor coaches by 756 units per year. What is the amount to use as the annual sales figure when evaluating this project? a. $237,293,280.
b. $262,271,520.
c. $357,739,200.
d. $95739200.
e. $160,876,800.
f. $249,782,400.

Answers

Answer:

Option C is correct

Annual sales figure =$ 357,739,200

Explanation:

Annual sales figure for Winnebago corp after the introduction f the new portable campers would be the sum of the annual sales figure for motor homes, luxury homes (after the introduction of new product) and the camper.

Note that the only the impact of the introduction of the new product would be considered on sales  would . The existing sales figures are not not relevant because they are not incremental.

Also,any reduction in sales figure as result of the introduction of a new product would be deducted.

These explanations are incorporated into the analysis below:

Product type         Quantity    Price           Sales figure ($'000)

Motor homes        3780               37,800        142,884  

Luxury homes          756            71,400          (53,978.4)

Camper                   15,969       (10,080 )        160,967.52

Total sales                                                       357,739.20  

Annual sales figure =$ 357,739,200

2.) Which of the following is true? A. The convenience yield is always positive or zero. B. The convenience yield is always positive for an investment asset. C. The convenience yield is always negative for a consumption asset. D. The convenience yield measures the average return earned by holding futures contracts.

Answers

Answer:

The correct answer is letter "A": The convenience yield is always positive or zero.

Explanation:

The convenience yield reflects the premium of possessing an asset instead of one of its derivates or contracts. This situation arises in front of inverted markets, where holding the asset itself may bring more profits than purchasing a derivate of the same asset.

The convenience yield tends to be positive or zero because the prices of assets cannot fall below zero. In other words, they are not negative.

Final answer:

convenience yield is a benefit of owning a physical asset over a futures contract. The yield is typically positive or zero. In the context of investment and consumption assets, the yield assumptions may vary.

Explanation:

The question is focusing on the concept of convenience yield in finance and its relationship with investment and consumption assets. Convenience yield is the non-monetary advantage or benefit that a holder gets from owning a physical good or an asset over a futures contract on that asset. If you decide to hold an asset as opposed to a futures contract on the asset, it means because the net benefits – that is the benefits from holding the asset, minus the benefits of holding the contract – must be nonzero. Therefore, option A is correct: The convenience yield is always positive or zero.

Moreover, for an investment asset, which is purchased with the hope that it will generate income or appreciate in value, the convenience yield is generally assumed to be zero because holding it delivers no utility beyond the financial returns it provides. So option B is not always true. The convenience yield being negative for a consumption asset, an asset purchased for current use, is also unlikely (option C is incorrect). Such a negative value would suggest that owning the asset is somehow disadvantageous - which contradicts the reason for purchasing a consumption asset. Lastly, the convenience yield does not measure the average return earned on futures contracts, therefore option D is also incorrect.

Learn more about convenience yield here:

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During the first year of operation, 2018, McGinnis Appliance recognized $340,000 of service revenue on account. At the end of 2018, the accounts receivable balance was $66,836. Even though this is his first year in business, the owner believes he will collect all but about 5 percent of the ending balance. Required What amount of cash was collected by McGinnis during 2018

Answers

Answer:

$273,164

Explanation:

Data given in the question

Recognized amount of service revenue = $340,000

And, the account receivable balance is $66,836

So, by considering the above information, the amount of cash collected is

= Recognized amount of service revenue - the account receivable balance

= $340,000 - $66,836

= $273,164

By deducting the account receivable balance from the service revenue recognized amount we can get the cash collected amount

The Converting Department of Hopkinsville Company had 1,160 units in work in process at the beginning of the period, which were 30% complete. During the period, 24,400 units were completed and transferred to the Packing Department. There were 1,280 units in process at the end of the period, which were 60% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0".

Answers

Answer and Explanation:

The computation of the number of equivalent units for direct material and conversion cost is shown below:

For materials

= units started and completed  × completion percentage + ending work in process inventory × completion percentage

=  (24,400 - 1,160) × 100% + 1,280 units × 100%

=  23,240 units + 1,280 units

= 24,520 units

For conversion

= Opening work in process inventory × remaining percentage + units started and completed  × completion percentage + ending work in process inventory × completion percentage

= 1,160 units × 70% + (24,400 - 1,160) × 100% + 1,280 units × 60%

= 812 units + 23,240 units + 768 units

= 24,820 units

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