A 10 kW home wind turbine is being planned for acquisition and installation at a cost of $65,000. During its useful life it is expected to generate an annual gross income of $8000. The cost to house the machine is $100 per year. Its maintenance cost is projected to be $500 per year. Draw a cash flow diagram, determine the payback period for the machine, and indicate this payback period on the CFD.   * with complete calculation.

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Q: An energy specialist was asked to provide two plans for the engineering department of Makati…

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Q: Quantum Corp. is considering purchasing a new milling machine with a useful life of 6 years. The…

A: Payback period is the number of years the project takes to recover its initial investment. formula:…

Q: Bryson Sciences is planning to purchase a high-powered microscopy machine for $384,000 and incur an…

A: Computation:

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Q: The management of Charlton Corporation is considering the purchase of a new machine costing…

A: IRR is a rate at which NPV of the project is equal to 0 or it’s a rate at which cash inflows are…

Q: Alpha Company is planning to invest in a machine, the use of which will resultin the following:•…

A:

Q: Clapton Corporation is considering an investment in new equipment costing $750,000. The equipment…

A: Accounting Rate-of-Return (ARR) is used to measure profitability of investment proposals ignoring…

Q: The NUBD Co. is planning to purchase a new machine for P300,000. The payback period is expected to…

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A: Particulars Year Amount PVF @8% Present Value Operating cash flows 1 17000 0.926…

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A:

Q: Primus Corp. management is planning to convert an existing warehouse into a new plant that will…

A: Discount rate 12% YEAR CASH FLOW  0  $ (7,125,000.00) 1  $    1,875,000.00 2  $…

Q: APJ, Inc. is planning to purchase a new machine that will take six years to recover the cost. The…

A: PAYBACK PERIOD = INTIAL INVESTMENT / CASH FLOW PER YEAR  SO , INITIAL INVESTMENT = CASH FLOW PER…

Q: Cepeda Manufacturing Company is considering three new projects, each requiring an equipment…

A: Net Present Value is a concept of Capital Budgeting. Net Present Value is calculated by subtracting…

Q: A 2-ton hydraulic press is needed to add to production. This equipment has an initial purchase and…

A: Initial Purchase and Installation Cost 190000         Yearly Operation Cost 1000…

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A:

Q: Your company is planning to purchase a new log splitter for its lawn and garden business. The new…

A:

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A: As given in question we must evaluate a new proposal to generate inkjet printers as a financial…

Q: A company wants to purchase a piece of equipment that costs $18,000. In 8 years, that same piece of…

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A: The formula to compute payback period as follows:

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A: Computation:

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A: The terminal cashflow is known as terminal year non operating cashflow.

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Q: s of $40,000 each year, the cash payback period is

A: Cash Payback Period = Initial Investment/Annual Cash Inflows      = 240000/40000      = 6 YEARS

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A: The internal rate of return is the rate at which the present value of cash inflows is equals to the…

Q: 10 kW home wind turbine is being planned for acquisition and installation at a cost of $65,000.…

A: Payback period is the number of years required to recover the initial investment.

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A: NPV is the difference between present value of all cash inflows and initial investment. NPV =PV of…

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Q: The engineers at a design firm have been tapped by an amusement park to design a water sports ride.…

A: Present worth is the present value of cash flows that are expected to occur in the future.

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.