Good day! I need your help tutor please answer the question attached below. The answer is already provided, which means that will be your basis if your answers are correct or not.Ps. In your solution, you identify the given and the what is being asked in the problem and I want to see the formula that you used and box your final answer. Don't give me a solution that is made in ms excel, I am not econ major so i'm asking for you to do the manual or the traditional computation.Lastly, don't give me a shortcut solution because i want to learn and study your computation :)Pps. I want you to use the Present Worth Method,Annuity Worth Method, Future Worth Method .(if applicable) 3.An industrial firm is considering purchasing several programmable controllers and automating the company'smanufacturing operations. It is estimated that the equipment will initially cost $120,000, and the labor to install it willcost $25,000. A service contract to maintain the equipment will cost $5,000 per year. Trained service personnel will haveto be hired at an annual salary of $50,000. Also estimated is an approximate $10,000 annual income-tax savings (cashinflow). How much will this investment in equipment and services have to increase the annual revenues after taxes inorder to break even? The equipment is estimated to have an operating life of 10 years with no salvage value (because ofobsolescence). The firm's MARR is 12%. Ans. R= $90,662.70

This is a problem involving present worth and annual worth. In this problem, we have to calculate…

Answered: 3.An industrial firm is considering…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 19P

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Good day! I need your help tutor please answer the question attached below. The answer is already provided, which means that will be your basis if your answers are correct or not.

Ps. In your solution, you identify the given and the what is being asked in the problem and I want to see the formula that you used and box your final answer. Don't give me a solution that is made in ms excel, I am not econ major so i'm asking for you to do the manual or the traditional computation.Lastly, don't give me a shortcut solution because i want to learn and study your computation :)

Pps. I want you to use the Present Worth Method,Annuity Worth Method, Future Worth Method .(if applicable)

3.An industrial firm is considering purchasing several programmable controllers and automating the company's
manufacturing operations. It is estimated that the equipment will initially cost $120,000, and the labor to install it will
cost $25,000. A service contract to maintain the equipment will cost $5,000 per year. Trained service personnel will have
to be hired at an annual salary of $50,000. Also estimated is an approximate $10,000 annual income-tax savings (cash
inflow). How much will this investment in equipment and services have to increase the annual revenues after taxes in
order to break even? The equipment is estimated to have an operating life of 10 years with no salvage value (because of
obsolescence). The firm's MARR is 12%. Ans. R= $90,662.70

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