Your firm is thinking about investing $200 comma 000200,000 in the overhaul of a manufacturing cell in a lean environment. Revenues are expected to be $33 comma 00033,000 in year one and then increasing by $11 comma 00011,000 more each year thereafter. Relevant expenses will be $20 comma 00020,000 in year one and will increase by $10 comma 00010,000 per year until the end of the cell's ninenine-year life. Salvage recovery at the end of year ninenine is estimated to be $11 comma 00011,000. What is the annual equivalent worth of the manufacturing cell if the MARR is 1010% per year?

EAW = -$17,545.71

Explanation:

initial investment = $200,000

cash inflows;

cash outflows:

EAW = equivalent annual worth = equivalent annual benefits - equivalent annual costs

to determine the EAB we must first find the PV of the cash inflows using a financial calculator = $408,348.84

EAB = (PV x r) / [1 - (1 + r)⁻ⁿ] = ($408,348.84 x 10%) / [1 - (1 + 10%)⁻⁹] = $70,905.91

to determine the EAC we must first find the PV of the cash outflows (including initial outlay) using a financial calculator = $509,395

EAC = (PV x r) / [1 - (1 + r)⁻ⁿ] = ($509,395 x 10%) / [1 - (1 + 10%)⁻⁹] = $88,451.62

EAW = $70,905.91 - $88,451.62 = -$17,545.71

answer: a. the kind of population living in your neighbourhood.

the census explorer data tool by the us census bureau allows the user to zoom in on any neighbourhood within the united states and find the kind of people residing in that by race and age.  

the tool needs to needs to be used twice – once in order to find what type of people reside in a neighbourhood, and then to see the age groups of the people in the same neighbourhood.