Types Of Taxes

Taxes may be classified into three types (1) property taxes, (2) excise taxes, and (3) income taxes. These taxes may be levied by the Federal government, state governments, or local governments. Local governments usually have jurisdiction over property taxes, which are commonly charged on a county basis. In addition to these, individual cities and towns may have special property taxes for industrial concerns located within the city limits. Property taxes vary widely from one locality to...

Source Of Capital

One source of new capital is outside loans. Interest on such loans is usually at a fixed rate, and the annual cost can be determined directly. New capital may also be obtained from the issue of bonds, preferred stock, or common stock. Interest on bonds and preferred-stock dividends must be paid at fixed rates. A relatively low interest rate is paid on bonds because the bond-holder has first claim on earnings, while higher rates are paid on preferred stock because the holder has a greater chance...

Methods For Including Cost Of Capital In Economic Analyses

The cost of new capital obtained from bonds, loans, or preferred stock can be determined directly from the stated interest or dividend rate, adjusted for income taxes. However, the cost of new capital obtained from the issue of common stock is not so obvious, and some basis must be set for determining this cost. Probably the fairest basis is to consider the viewpoint of existing holders of common stock. If new common stock is issued, its percent return should be at least as much as that...

Fixedcharges

Certain expenses are always present in an industrial plant whether or not the manufacturing process is in operation. Costs that are invariant with the amount of production are designated as fixed costs or fixed charges. These include costs for depreciation, local property taxes, insurance, and rent. Expenses of this type are a direct function of the capital investment. As a rough approximation, these j charges amount to about 10 to 20 percent of the total product cost. Equipment, buildings, and...

Solid Waste Disposal

Solid wastes differ from air and water pollutants since these wastes remain at the point of origin until a decision is made to collect and dispose of them. There are several means of disposal available including recycling, chemical conversion, incineration, pyrolysis, and landfill. Federal regulations, local conditions, and overall economics generally determine which method is the most acceptable. RECYCLING AND CHEMICAL CONVERSION. Resource recovery is a factor often overlooked in waste...

Plot The 1985 Purchased Cost Of The Shell-and-tube Heat Exchanger

The purchased cost of a shell-and-tube heat exchanger floating head and carbon-steel tubes with 100 ft2 of heating surface was 3000 in 1980. What will be the purchased cost of a similar heat exchanger with 200 ft2 of heating surface in 1980 if the purchased-cost-capacity exponent is 0.60 for surface area ranging from 100 to 400 ft2 If the purchased-cost-capacity exponent for this type of exchanger is 0.81 for surface areas ranging from 400 to 2000 ft2, what will be the purchased cost of a...

Problems

It is desired to have 9000 available 12 years from now. If 5000 is available for investment at the present time, what discrete annual rate of compound interest on the investment would be necessary to give the desired amount 2. What will be the total amount available 10 years from now if 2000 is deposited at the present time with nominal interest at the rate of 6 percent compounded semiannually 3. An original loan of 2000 was made at 6 percent simple interest per year for 4 years. At the end...