2. Given the following data, determine how many years should the equipment be kept. Assume i=12%. Operation Cost at year j Year Market Value at year j Php. 100,000 Php. 81,000 Php. 48,000 Php. 35,000 Php. 23,000 Php. 0.00 (G) 6,000 7,000 8,000 9,000 10,000 1 2 3 4
Q: Engr. Roque owner of the HarRoq’s Ice Plant is monitoring the cashflow of the plant. Based on the…
A: The total cost incurred by firms operating in a market is the sum of fixed costs and variable costs.…
Q: Please be guided accordingly. Table: LI TP MP АР 1 2 12 24 32 40 6. 42 7 35 8 24 1. Fill In the…
A: since you have asked a multipart question and according to our policy we can only solve the first 3…
Q: Suppose a company has a forklift but is considering purchasing a new electric-lift truck that would…
A: Answer The calculation will be done for 3 years to finalize when should the truck be sold off. For…
Q: Example: Consider a machine that costs 20000 TL and has a useful life of 5 years. Let the scrap…
A: The measure that depicted the current stream of cash flows being discounted at a specified rate of…
Q: 14) Stan bought a car three years ago for $20,000. Recently he got a promotion and is deciding…
A: let the the total number of years a car lasts be 12 years Cost of old car = $20,000 Present value of…
Q: 4). The demand for an item is steady at 1400 units per year. The ordering cost is OMR 16 per order,…
A: Reorder point: It means the unit quantity that triggers the purchase of a particular stock item.
Q: 0,000.00 will be retired at the end of 8 years. Depreciation cost is computed using a constant…
A: First Cost=P 60,000.00 Life=8 years Depreciation method: declining book value Annual rate of…
Q: Chapter 10 - Suppose we have a company that is considering undertaking a project. The annual cash…
A: Present value (PV) can be calculated by using the following formula.
Q: f an asset has a cost of 6,000, a salvage value of 1,500, and the annual straight line method…
A: Given data: Initial asset cost is 6000 Salvage value is 1500 Depreciation expense is 1125
Q: A- The fuel cost ($/h) for the two generating units in a certain plant are given by: 2 F, = 0.06P, +…
A:
Q: Nestle Ltd. It produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and…
A: The optimal duration of downtime refers to the time elapsed between two orders. Annual holding cost…
Q: Cost component Alpha Beta Charlie development 100,000 immediately 150,000 year 1 10,000…
A:
Q: For all True/False questions, you must explain why the answer is true or false. 1. sold last year,…
A: here we find whether the given statement is true of false by the following method as follow:-
Q: The table given below shows how, on average, the market value of a Boeing 737 has varied with its…
A: Economic depreciation: This is the actual depreciation in the value of an asset. For example, the…
Q: Question 25 A replacement study showed that the components of the total costs of an asset are as…
A: The economic life of an asset is the number of years that the asset is useful to the business.
Q: The following are data from a production, calculate; The Break-even point in terms of sales value…
A: In the question above, it is given that : Monthly Fixed Factory Overhead Cost = P 600,000…
Q: Al-Rawabi Company is an Omani firm offering different services. However, its main activity focuses…
A: Exchange rate risk is a risk that arises when investors deal with foreign currency. The value of any…
Q: 3. Machine A costs $2,000, has zero salvage value at any time, and has an associated labor of $11.4…
A: The price at which a transaction or investment breaks even is the breakeven point (or "breakeven…
Q: every year for the next 49 years, at which point your friend intends to shut down the business. The…
A: Therefore, the correct answer is option B i.e., 'No, according to the fundamental value equation,…
Q: Task 2 a) Calculate the market price in equilibrium for an investment that in the period before had…
A: The market price in equilibrium for an investment that in the period before had a dividend of SEK 10…
Q: 1-JAccording to replacement analysis, determine the number of years that the defender should be used…
A: Introduction: Economics deals with the study of behavior and interactions of economic agents,…
Q: A car retail store reduces prices by 15 percent each year until the cars are sold. What will a…
A: The compound interest is a concept based on earning interest on interest , giving rise to a…
Q: 7) A machine costing $25,000 to buy and $3,000 per year to operate will save mainly labor expenses…
A: Given: The cost of a machine is = $25,000 The operating cost per year is = $3,000 Machine years = 6…
Q: 4. A stopwatch used for Time and Motion Study has a selling price of P1,500. If its selling price is…
A: Given; Selling price stopwatch used for Time and Motion Study= ₱1500 Selling price is expected to…
Q: A startup is considering buying a $295,000 piece of equipment. If it purchases the equipment, it…
A: Given information Initial investment= $295000---- by taking a loan Interest rate for repayment of…
Q: A firm has the capacity to produce 1,000,000 units of a product each year. At present, it is…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: The following table contains a summary of how a project's balance is expected to change over its 5…
A:
Q: A startup is considering buying a $295,000 piece of equipment. If it purchases the equipment, it…
A: Given information Initial investment= $295000---- by taking a loan Interest rate for repayment of…
Q: Question 5 of 16 Sandra's company has a machine that can produce a maximum of 45,000 components per…
A: Breakeven is a point where a firm earns zero profit or at a situation of no profit no loss. It is a…
Q: $2500 om a e out a mortgage from your local bank. shares of common stock in the secondary market.…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first three question for you…
Q: You invested $100,000 in a project and received $40,000 at n = 1, $40,000 atn = 2, and $30,000 at n…
A: The given information is as follows. Initial investment = $100,000 Revenue receives = $40,000…
Q: Question 12 A company has an export transaction with the payment term D/P T/R at 15 days after…
A: When companies make import and export of goods,they have to make legal formality regarding relevant…
Q: The following table gives the operation cost, maintenance cost and salvage value at the end of every…
A: Given P(purchase value)= 30000 i= 20% or 0.20
Q: A process plant making 5000kg /day of a product selling for $1.75 per kg has annual direct…
A: Breakeven point refers to the situation where the total cost of the production is equal the total…
Q: 10 9 8 7 6 5 4 3 2 1 AS AD Tools -9 QE QF
A: Introduction As measured by output, GDP is neither larger nor lower than GDP as measured by demand.…
Q: Moriarty started living in his own condominium after turning 25 years old. When he turned 26, he…
A: The price of a Gardenia wheat bread pack = Php 85 per pack Weekly buying habit = 1 pack per week…
Q: 1. Hula hoop fabrications cost $100 each. The H2H company is trying to decide how many of these…
A:
Q: A firm is deciding whether or not to invest in a new piece of machinery. The equipment would cost…
A: Present value = Where r = 5 % P = 400 N = 3 Present value = Annual amount * (1 - (1 +…
Q: According to indirect method of cash flow statement, one of the adjustments needed to record is the…
A: The income direct method determines changes in cash receipts and payments, which are reported within…
Q: A mechanical engineer is considering building automated material-handling equipment for a production…
A: To get the present worth with the first alternative: Annual cost(P/A, rate, year)=-9200(P/A,…
Q: T has bought the new N2 for 80,000 Knuts and because the broomstick flies only with the wizard who…
A: We are going to find the Annual equivalent cost for the broomstick to answer this question. Interest…
Q: A firm is considering purchasing equipment to manufacture a new product. The equipment will cost…
A: Cash inflow: Money inflow is the cash going into a business. It's something contrary to money…
Q: A man is considering putting up his own enterprise, where an investment of 800,000 will be required…
A: Since the question you have posted consists of multiple parts, we will answer the first three parts…
Q: The current price of a stock is S67.45. If dividends are expected to be $0.80 per share for the next…
A: here we calculate the price of given by following method as follow;
Q: A share of stock currently costs $35. You can purchase either the shares, or options to buy the…
A: Answer in step 2.
Q: Question 6.1 You have purchased a machine costing $20,000. The machine will be used for 2 years, and…
A: To justify launching a capital project, such as building a new factory, a corporation must determine…
Q: A telecommunications business may produce 500, 000 units per month. The company generates a total…
A:
Step by step
Solved in 2 steps with 1 images
- Cost component Alpha Beta Charlie development 100,000 immediately 150,000 year 1 10,000 immediately None Programming 45,000 immediately 35,000 year 1 45,000 immediately 30,000 year 1 None Operations 50,000 1-10 80,000 years 1-10 150,000 years 1-10 support 30,000 1-10 40,000 years 1-10 none If each system is expected to have a 10-year life, 1. calculate the net present value for each system if the cost of capital is 8%. 2. Specify which system should be selected and whyA firm is considering purchasing equipment to manufacture a new product. The equipment will cost $3M, and expected net cash inflowsare $0.35M indefinitely. If market demand for theproduct is low, then over the next five years thefirm will have the option of discarding the equipment on a secondary market for $2.2M. Assume thatMARR = 12%, s = 50%, and r = 6%. What isthe value of this investment opportunity for the firm?Consider a five-year MACRS asset, which can be purchased at $80.000. Thesalvage value of this asset is expected to be $42,000 at the end of three years.What is the amount of gain (or loss) when the asset is disposed of at the end of three years?(a) Gain $11,280(b) Gain $9,860(c) Loss $9,860(d) Gain $18,960
- A company owns a 5-year-old turret lathe that has a book value of $20,000. The present market value of the lathe is $16,000. A new turret lathe can be purchased for $45,000. Using an insider’s point of view, what is the first cost of the new lathe? a. $29,000 b. $45,000 c. $25,000 d. $16,000.A businessman is considering the purchase of a machine that is expected to be obsolete in 5years. The machine is worthP100,000. The prevailing rate of interest is 15%. His estimate of the annual gross incomes fromthe use of the machine isas follows:Year Income1 20,0002 25,0003 35,0004 30,0005 28,000Total = P138 999Should the businessman purchase the machine?The most recent annual dividend of XYZ Ltd. was $1.80 per share and the required return is 11%. The management estimated that the dividends were expected to grow at a rate of 8% annually for three years, followed by a 5% constant annual growth rate in years 4 through infinity. The price of XYZ's stock should be about: a. $29 b. $43 c. $34 d. $5
- A process plant making 5000kg /day of a product selling for $1.75 per kg has annual directproduction costs of $2 million at 100 percent capacity and other fixed costs of $700,000. What isthe fixed charge per kg at the break-even point? If the selling price of the product is increased by10 percent, what is the dollar increase in net profit at full capacity if the income tax rate is 35percent of gross earnings?1) A public agency is obliged to purchase a compressor with an economic life of 10 years or by leasing at the same time. The purchase price of the compressor is 7.500.000 TL, and if it is purchased, it will bear 250.000 TL annual electricity consumption expense, 300.000 TL standard maintenance repair expenses and an additional 600.000 TL maintenance expenses every two years. The scrap value of the compressor is 1.500.000 TL. If the compressor is not purchased and a lease is chosen, 2,500,000 rents per year, including all operating expenses, will be paid for 10 years. Since the annual nominal interest rate is 22%, evaluate the way in which the public agency should obtain the compressor according to the ANNUAL EXPENSE method.2. a machine is under considerations for investment. the cost of the machine is p25,000.00. each year it operates, the machine will generated a savings of p15,000. given an effective annual interest rate of 18%, what is the discounted payback period, in years on the investment in the machine?
- A new bottle-capping machine costs $45 000, including $5000 for installation. The machine is expected to have a useful life of eight years with no salvage value at that time (assume straight-line depreciation). Operating and maintenance costs are expected to be $3000 for the first year, increasing by $1000 each year thereafter. Interest is 12 percent. What is the economic life of the bottle capper? Note: don't use chat gptThe following data regarding Atlas Construction Company are available:Current assets $300,000Current liabilities 200,000Long-term liabilities 500,000Total net worth 200,000What is the value of the company’s fixed assets?4- As a prospective owner of a club known as the Red Rose, you are interested in determining the volume of salesdollars necessary for the coming year to reach the break-even point. You have decided to break down the salesfor the club into four categories, the first category being beer. Your estimate of the beer sales is that 30,000 drinkswill be served. The selling price for each unit will average $1.50; the cost is $.75. The second major category ismeals, which you expect to be 10,000 units with an average price of $10.00 and a cost of $5.00. The third majorcat- egory is desserts and wine, of which you also expect to sell 10,000 units, but with an average price of $2.50per unit sold and a cost of $1.00 per unit. The final category is lunches and inexpensive sandwiches, which youexpect to total 20,000 units at an average price of $6.25 with a food cost of $3.25. Your fixed cost (i.e., rent,utilities, and so on) is $1,800 per month plus $2,000 per month for entertainment.a) What is your…