An investment of $20.000 in new equipment will generate income of $7000 per year for 3 years, at which time the machine can be sold for an estimated $8000. If the company's MARR Is 15% per year, the equation that can be used to solve for i is: 0 = -20,000 + 7000(PIAI3) + 8000(P/F,.3) Select one: O True False
Q: LEIS company is planning to borrow P10.5M for a company expansion and is not sure what the interest…
A: *SOLUTION :-
Q: At 20% cpd. monthly., find the capitalized cost of a bridge whose cost is P673777 with a life of 22…
A: Capitalized cost = Initial Cost + (Rehabilitation Cost-Salvage Value)/((1+i)^n-1)
Q: A company in Batangas is planning to buy a new gantry crane that has a capacity of 50 tons. In the…
A: Annual Cost methods/EUAC provides information about the operating and owing annual costs of a…
Q: PIX company is considering licensing a water treatment system. The company can purchase a one-year…
A: ANSWER: For PWnow:$714,150. For PWone-year:$238,311 SOLUTION: Given PIX…
Q: An asset with a first cost of $20,000 has an annual operating cost of $12,000 and a $4000 salvage…
A: First cost (C) is $20,000, Annual cost (AC) is $12,000 and salvage value (SV) is $4,000. Time period…
Q: Nelson, Inc. is considering investing in new and more efficient equipment The equipment has 10-year…
A: Given, First cost= $800,000 Annual cost = $40,000, increases $20,000 per year Equipment life = 10…
Q: 7-4.In a cold storage plant, it is desired to determine whether to use insulation two inches thick…
A: The cost without insulation is 96 per square foot per year. The cost of two-inch insulation is…
Q: Acer Philippines, a Taiwanese multinational hardware and electronics corporation specializing in…
A: Initial purchase of small electronic computers = P1,500,000 Service maintenance = P150,000 Salary…
Q: A pipeline contractor can purchase a needed truck for $42,000. Its estimated life is 6 years, and it…
A: here we calculate the following questions by using the given data , so the calculation of the…
Q: To improve package tracking at a UPS transfer facility, conveyor equipment was upgraded with RFID…
A: Annual Worth (AW) Analysis is the term used to represent the consistent annual worth of all…
Q: PT POQ Indonesia plans to produce a new product that requires an initial investment of IDR 150…
A: Initial Investment = 150 million Maintenance Cost = 3500 per hour Other cost = 75 million per year…
Q: An injection molding system has a first cost of $180,000, and an annual operating cost of $84,000 in…
A: a. First cost (FC) is $180,000. Annual cost (AC) in year 1 and 2 is $84,000 after it increases by…
Q: A piece of new equipment has been proposed by engineers to increase the productivity of a certain…
A: The continual expenses incurred in the usual day-to-day operations of a business are known as…
Q: A toy manufacturing company is selling pokemon figures in Latin America, generating annual revenues…
A: Given that; Annual revenue =$80000. The revenues are expected to increase by $30000 each year for 4…
Q: The International Parcel Service has installed a new radio frequency identification system to help…
A: (Q) The International Parcel Service has installed a new radio frequency identification system to…
Q: A toy manufacturing company is selling pokemon figures in Latin America, generating annual revenues…
A: Annual revenue is the total amount of money a firm earns from the sale of products, services,…
Q: The engineer of a medium scale industry was instructed to prepare two plans to be considered by…
A: Plan-A Initial investment=P200000 Salvage value =20% of first cost for 20 years Maintenance…
Q: The first cost of a certain piece of equipment is $50,000. It will have an annual operating cost of…
A: Capitalized cost is a cost that is incurred with the purchase of a fixed asset and expected to…
Q: A new production system for a factory is to be purchased and installed for $179,949. This system…
A: Answer; Assume that cost of electricity is $0.10 per kw/h.
Q: An investment of RM50,000 can be made in a project that will produce a uniform annual revenue of…
A: The present worth method includes converting all the future cash flows into present value. If the…
Q: $100,000 is invested in equipment having a negligible salvage value regardless of when the equipment…
A: Given information: Equipment cost = $100,000 Operating and maintenance cost (O&M cost) =…
Q: A construction firm is considering purchasing equipment that will reduce cost by P40,000. The…
A: C option . No is the right answer. Pls see below. Cash flows from year 1 to 6 are savings of 40000…
Q: Two stamping machines are under consideration for purchase by a metal recycling company. The manual…
A: Given: Manual model: First cost=12,50,000, Annual cost=800000,Salvage value=250,000, Life=8 Computer…
Q: PIX company is considering licensing a water treatment system. The company can purchase a one-year…
A: Given, PIX company is considering licensing of water treatment systemCost of one-year purchase :…
Q: A company is offered a new computer program that is supposed to provide savings in costs. The cost…
A: Answer to the Question :- Given :- Cost Savings per annum = 100,000 New Equipment Cost = 200,000…
Q: How long would it take to recover and investment of $250,000 in enhanced CNC controls that include…
A: Each necessary column's derivation of calculations has been included in the header row of the…
Q: A local company assembles radio transmitters and produces certain units per month. This costs 705.42…
A: A break-even point refers to the units of an output at which a firm experiences non-profit, no-loss…
Q: A company produces electric devices, the fixed cost is 30,000 LE and the variable cost is 100 LE per…
A: The amount cash that the offer of every unit will add to taking care of total fixed costs is known…
Q: LEIS company is planning to borrow P10.5M for a company expansion and is not sure what the interest…
A: In economics, expansion is an upward trend in the business cycle characterised by an increase in…
Q: The engineer of a medium scale industry was instructed to prepare at least two plans which is to be…
A: Given information Plan A Initial investment=P354571 Salvage value=18.876% of P354571 Payment at 5th…
Q: A company in Batangas is planning to buy a new gantry crane that has a capacity of 50 tons. In the…
A: Equivalent Annualized Uniform methods provides information about operating and owing annual costs of…
Q: A contractor has a 4-year concrete mixer whose first cost was S6,000, having 3 more years to live…
A: Equivalent annual cost (EAC) is the annual cost of purchasing, working, and keeping a resource over…
Q: In an effort to reduce pipe breakage, water hammer, and product agitation, a French chemical company…
A: (a)
Q: Capitalized cost of a piece of eqpt was found to be P1.5M. The rate of interest was 12% with salvage…
A: Capitalised cost = Annual Worth/i
Q: A granary purchases a conveyor used in the manufacture of grain for transporting, filling, or…
A:
Q: A bridge is to be constructed now as part of a new road. Engineers have determined that traffic…
A: * SOLUTION :-
Q: Question 8 Canada's Wonderland has decided to carry out an analysis to determine when one of its…
A: First Cost = 715000 Study period = 5 years MARR = 10%
Q: Power cost is P2 per kWh. If money is worth 20%, how many hours per year would the motors have to be…
A: The breakeven point is the level of production at which the costs of production equal the revenues…
Q: A corporate jet costs $1,350,000 and will incur $200,000 per year in fixed cost (maintenance, ..)…
A: Given initial cost = $1350000 Annual fixed cost = $200000 per hour variable cost = $277
Q: Ramsis is a beavy equipment rental company. It is considering the purchase of Tower crane at a price…
A: Cost 775000 Rental Income 108000 start from 2nd year Income increase by 10% Maintenance…
Q: The annual cost C (in thousands of dollars) and revenue R (in thousands of dollars) for a company…
A: We know that profit is the total revenue earned minus the total cost incurred by the producer. Thus,…
Q: A manager has been presented with two proposals for automating a production process. Proposal A…
A: Particular A B Initial Cost 15,000 28,000 Annual operating cost for 4 years 2,400 Increasing…
Q: Determine the capitalized cost of a project that cost P324,000 with an anticipated salvage value of…
A: First, we convert all values into an equivalent A value. Now, we will divide the A value by the…
Q: The Malaysian Airlines System (MAS) is facing heavy challenges due to the pandemic of COVID-19 that…
A: It is given that , Annual Worth of cost for older machine is 70,000 for 3 years Annual Worth of…
Q: Two stamping machines are under consideration for purchase by a metal recycling company. The manual…
A: Manual Computer Investment cost 1250000 4750000 Cost 8,00,000 5,00,000 Upgradation Cost…
Q: Based on company records of similar equipment, a consulting aerospace engineer at Aerospatiale…
A: In this technique of comparison, the cash flows of each alternative will be decreased to time zero…
Q: DBM, determine the appreciation charge
A: Straight line (SL) depreciation rate = 1 / useful life = 1/5 = 0.2 DBM depreciation rate = 2 x SL…
Q: A broadcasting corporation purchased equipment for P53,000 and paid P1,500 for freight and delivery…
A: The standard yearly rate at that depreciation is charged to a hard and fast plus is named annual…
Q: Question 4 Find the future worth of Machine B that has a first cost of $21,191, an operating cost of…
A: The measure that depicts the value of the current asset at a future date that is being based on an…
Q: A local company assembles radio transmitters and produces certain units per month. This costs 852.42…
A: Break-Even point:- Q=FP-V where; Q= Break-even quantity F= Fixed cost P= Per…
Step by step
Solved in 2 steps
- (ii) The value V of a Porsche 718 Cayman that is t years old can be modeled by V(t) = 420,000(0.965) (a) What would be worth the car's worth in 2 years? (b) I how may years will the car be worth $325,000?You are starting a new project. This project would last 4 years. The following is the input information that you have collected: Building cost (1.3% in the first year and then 2.6% every year) $12,000,000 Equipment cost (MACRS 5 years) $8,000,000 Net operating working capital requirement (% of Sales) 10% First year sales (in units) 20,000 Growth rate in units sold 0% Sales price per unit $3,000 Variable cost per unit $2,100 Fixed costs $8,000,000 Market value of building at the end of year 4 7,500,000 Market value of equipment at the end of year 4 2,000,000 Tax rate 40% WACC 12% Inflation growth in sales price per year 2% Inflation growth in VC per unit per year 2% Inflation growth in fixed costs per year 1% What is the NPV of this project? (In your calculations use zero decimal spaces/round to the whole numbers).A firm is must choose to buy the GSU-3300 or the UGA-3000. Both machines make the firm’s production process more efficient which in turn increases incremental cash flows. The GSU-3300 produces incremental cash flows of $24,998.00 per year for 8 years and costs $99,590.00. The UGA-3000 produces incremental cash flows of $29,475.00 per year for 9 years and cost $126,038.00. The firm’s WACC is 8.32%. What is the equivalent annual annuity of the GSU-3300? Assume that there are no taxes.
- Please no written by hand solutions When a child is born, the parents receive gifts of $5000 which they invest at 6% interest. Each year they are fortunate to receive $1000(1+f/5) in gifts that they add to the investment. When the child is 18, he is allowed to remove the money from the account. How much is there? f = 3, so $1600 is added to the gift each year.You plan to start saving money by depositing $5000 into your savings account now. Also, you estimate that you will make a deposit of $200 each year for the next 9 ears. What would be the future worth if the investment interest rate is 7% per year? (solve using both tables and rules)Simplifying [(n+1)! / n!] gives what?
- U.S. Census Bureau statistics show that the annual earnings for persons with a high school diploma are $35, 220 versus $57, 925 for someone with a bachelor’s degree. If the cost of attending college is assumed to be $35, 000 per year for 4 years and the forgone earnings during those years are assumed to be $35, 220 per year, what rate of return does earning a bachelor’s degree represent? Use a 25-year study period. In your analysis, you are expected to: (i) Use Excel to display the cash flow; (ii) Draw a Cash Flow Diagram; (iii) Use Excel to compute the internal rate of return of the CFD. (Hint: The investment in years 1 through 4 is the cost of college plus the foregone earnings, and the income in years 5 through 25 is the difference in income between a high school diploma and a bachelor’s degree.) Use excelYour company has a $300,000 loan for a new security system it just bought. The annual payment is $ 28,500 and the interest rate is 7% per year for 20 years. Your company decides that it can afford to pay $40,000,000 per year. After how many payments (years) will the loan be paid off? Answer is Blank 1 years Note: do not use comma, no need to put the unit of measure and final answer must be in 2 decimal placesA government monument is being built that is expected to last forever. The first cost is $7,000,000. At the end of every 8 years, there will be a major remodeling cost of $300,000. At the end of year 12, there will be a one-time remodeling cost of $450,000. Annual Operating & Maintenance Costs will total $40,000 for each year. i = 6% per year. a) Draw the fully labeled cash flow diagram. b) Calculate the capitalized cost? c) What is the equivalent uniform annual cost?
- (b) person receives SR10,000 today and wants to invest it at 8% per year to be able to withdraw SR2000 every year forever. How long does he has to invest his money?A firm is considering purchasing computers that will reduce annual costs by P40,000. The Computers costs P300,000 and has a salvage value of P50,000 and a life of 7 years. The annual maintenance cost is P6,000, while not in use by the firm, the computers can be rented to others to generate an income of P10,000 per year. If money can be invested for an 8% return, using the annual cost method, how much is the savings or excess cost the fırm has in buying the computers?What are the values of the engineering economy symbols P, F, A, i, and n in the following spreadsheet or TVM calculator functions? Use a “?” for the symbol that is to be determined.a. FV(8%,10,2000,-10000)b. PMT(12%,30,16000)c. PV(9%,15,1000,700)d. n(8.5,5000,-50000,20000)