Profitability Analysis
(Reference: Peters, Timmerhaus, West in Plant Design and Economics for Chemical Engineers 5^th Ed.)

Problem 8 – 8

In the design of a chemical plant, the following expenditures and revenues are estimated after the plant has achieved its desired production rate:

• Total Capital Investment $ 10, 000, 000
• Working Capital $ 1, 000, 000
• Annual Sales $ 8, 000, 000 / yr.
• Annual Expenditures $ 2, 000, 000 / yr.

Assuming straight-line depreciation over a 10 – year project analysis period and with MACRS depreciation for 8 – yr. class life.

Develop a spreadsheet (similar to that in the Cost and Evaluation template) and calculate over an estimated life of 10 years. determine

1. The return on the investment after taxes
2. The payback period

pg. 354 (Peters, Timmerhaus, West in Plant Design and Economics for Chemical Engineers 5^th Ed.)

Why it is important the markets and welfare in economy

Which of the following events would increase the demand for chicken tacos at a local restaurant in Hayward (i.e. shift the demand curve to the right)?

Explain why the following statement is false: Competitive firms always earn zero profits in a long run equilibrium because their marginal cost is equal to their marginal revenue at the optimal level of production.

For the following questions: write a TRUE or FALSE and then elaborate on the answer.

1. The golden-rule state for an economy with constant population but where the effective supply of labour grows at a steady rate refers to a condition such that consumption of the total population is maximised.

2. The equation, Y = MV/P, implies that, if the velocity (V) does not change when the money supply (M) changes, then the government can raise national income (Y) by printing more money (M).

  1. Why do Black and Latino employees have a greater propensity to part-time work as opposed to full-time work.  What do you suspect would be the reason and why?

2. The most recent unemployment rate as reported by the Bureau of Labor Statistics for May 2020 was estimated at 13.3%.  The statistics below (in 1,000s) are derived from that report:

• Employed: 137,242
• Unemployed: 20,985
• Discouraged Workers: 662

If discouraged workers were counted as part of the unemployed, the unemployment rate would change from 13.3 percent to what percent?  Please show your work.

3. Explain why COVID-19 would be contributing to the number of underemployed workers.

1. III. Discuss Canada’s central bank – The Bank of Canada – in detail. Discuss all the features below
2. 1. The origins of the bank
3. 2. The formal structure of the bank
4. 3. The four main areas of responsibility
5. 4. The independence – make a case for and against independence of the bank
6. 5. What are the implications of the presence of the Bank of Canada with respect to the changing nature of the world today?

4. Unemployment rate is defined as the ratio of which of these:

     a) labor force to the population 16 years old or older.

     b) number of people unemployed to total population.

     c) number of people unemployed to the total population 16 years old or older

     d) none of the above

9. Assume that in 2018, the population 16 years old or older in a small town was 16,500 people,

   the number of employed was 11,000 people, the number unemployed was 2,500 people, the

   labor-force participation rate in 2015 was ------%.

1. 81.81%   (b) 90.91%    (c) 136.36%   (d) 71.43%

10. Which of the following represent the labor-participation rate?

1. the ratio of employment to the labor force
2. the ratio of labor force to the population over 16
3. the ratio of employment to the population over 16
4. the ratio of the labor force to employment

11. If the number of unemployed equals 4.7 million, the number of employed equals 100.3

    million, the labor force equals 125.8 million, and the total population 16 years of age and

    older is 150.6 million, the labor-force participation rate:

1. is 3.1%
2. is 66.6%
3. is 3.7%
4. is 83.5%

How should we define energy economics in this course and why? Why are you interested in energy economics? Does ghana face an energy problem if so what is it

Consider the following industry where the inverse market demand is given by the function: p=180-Y where Y is the total market output. There are two firms in the market, each has a total cost function: ci (yi)=3(yi)2 where i=1,2 is the label of the firm. Suppose the firms act as Cournot duopolists. What output level will each firm produce in order to maximize profits?.

which groups are over-represented and which are under-represented in state legislatures?

What do you think about the democratic deficit? What is it? is it a problem?