3 There are five alternatives for improvement of a road are tabulated as

3 there are five alternatives for improvement of a

This preview shows page 85 - 90 out of 98 pages.

______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 3. There are five alternatives for improvement of a road are tabulated as follows: Alternative Annual Benefits Annual Costs A 900,000 1,000,000
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Page 85of 98College Of Engineering Education 2ndFloor Business and Engineering Building Matina Campus, Davao City Tel no. (082)300-5456 local 133 B 1,300,000 1,400,000 C 2,800,000 2,100,000 D 3,300,000 2,700,000 E 4,200,000 3,400,000 Determine which of the following alternative should be chosen if the highway department is willing to invest money as long as there is B/C ratio of at least 1.0 ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 4. Company ABC can produce a certain transistor at a cost of 1.20 for labor, 2 for material and a variable cost of 0.50 for each transistor. The corresponding company’s fixed cost in running the business is 300,000 per month. Determine the minimum level of production per month that should be attained in order not to incur any loss if the selling price per transistor is 4. ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 5. A company is considering two alternatives with regards to an equipment which it needs. The alternatives are as follows: Alternative A: Purchase Cost of equipment = 700,000 Salvage value = 100,000 Daily Operating cost = 500 Economic life, years = 10 Alternative B. Rental at 1500 per day At 18% interest, how many days per year must the equipment be in use if Alternative A is to be chosen. ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
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Page 86of 98College Of Engineering Education 2ndFloor Business and Engineering Building Matina Campus, Davao City Tel no. (082)300-5456 local 133 ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ In a Nutshell Activity 1: Based from the definition of the most essential terms in the study of curriculum and the learning exercises that you have done, please feel free to write your arguments or lessons learned below. I have indicated my arguments or lessons learned. 1.The main goal of a business company is to MAXIMIZE its profits. Your Turn 2.____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 3.____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 4.____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 5.____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 6.____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 7.____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 8.____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 9.____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 10.____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 11.____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
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Page 87of 98College Of Engineering Education 2ndFloor Business and Engineering Building Matina Campus, Davao City Tel no. (082)300-5456 local 133 12.____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 13.____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Q & A List List 1: After series of discussion and exercises, kindly list down your questions or issues in conjunction with the topics. Write the answers after clarification under the column provided. This portion helps you in the review of concepts and essential knowledge. Do you have any questions for clarification? Questions/Issues Answers 1. 2. 3. 4. 5. Keywords Index Index: The keywords presented here will help you remember the concepts and essential knowledge. Here are the few subject index. B F V W Benefit-Cost Ratio Break Even Analysis Fixed Costs Variable cost Winfrey Method
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Page 88of 98College Of Engineering Education 2ndFloor Business and Engineering Building Matina Campus, Davao City Tel no. (082)300-5456 local 133 Big Picture Week 8-9: Unit Learning Outcomes-Unit 4 (ULO-4): At the end of the unit, you are expected to a.Be able to perform a sensitivity analysis of parameters; use expected values to evaluate staged funding options.
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