A shop installs a new equipment that prices 12M Peso. The shop assumes a rise of annual gross revenue to 500,000- Peso while it experiences 50,000- Peso annual expense for operations and maintenance. Determine the payback period (years)?

Q: A building is priced at $100,000. If a downpayment of $30,000 is made, an a payment of $1,000 every…

A: The number of months required to pay the amount can be calculated with the help of NPER function of…

Q: John Perez receives P 90,000.00 credit for his old automobile when buying a new model costing P…

A: The question can be solved as follows:

Q: The generator set requires no maintenance until the end of 2 years when P60,000 will be needed for…

A: Here, At the end of year 2 , maintenance cost is P60,000 From Year 3 to Year 7, Maintenance Cost is…

Q: A house costs P2,900,000 cash. The seller and the buyer had agreed to have a series of annual…

A: House cost (C) = P 2900000 Total payments (n) = 10  r = 8% Let the annual payment = A

Q: The maintenance of a machine in a manufacturing plant currently costs a company $9,000 every year…

A: Cash Flow Comparison with existing and new machine: Year Existing Cash Flows Proposed Cash Flows…

Q: The maintenance of a machine in a manufacturing plant currently costs a company $12,000 every year…

A: Solution- New Investment cost I=$30000 Rate R=7% PV of Annual Saving =S/(1+r)^n Cummulative Saving =…

Q: 0 down payment and 10 quarterly instaliments, the due at the end of the first year after purchase.…

A: The discounting formula is one plus discount rate divided by a number of year's whole raise to the…

Q: A piece of equipment costs ₱365,000 including shipping, installation and taxes. The supplier assures…

A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

Q: An asphalt road requires no upkeep until the end of 2 years when P60,000 will be needed for repairs.…

A: As you have asked multiple questions, we will solve the first question as per the policy presented…

Q: A new equipment costs $20,000. The following information is also available: Operating costs…

A: 1st year, calculation of NPV Time  0   ($) 1  ($) Initial cost  -20000   Operating cost…

Q: A piece of equipment costs ₱378,000 including shipping, installation and taxes. The supplier assures…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: Coronado Excavating Inc. is purchasing a bulldozer. The equipment has a price of $107,400. The…

A: Interest Rate -  The fees assessed to the borrower in exchange for the assets taken from the lenders…

Q: An asphalt road requires no upkeep until the end of 2 years when P60,000 will be needed for repairs.…

A: Equivalent Annual cost: Equivalent Annual cost (EAC) is the yearly expense of buying, working, and…

Q: A commercial building can be acquired at a downpayment of P 500,000 and a yearly payment of P…

A: Down payment (DP) = P 500,000 Yearly payment (P) = P 100,000 Number of annual payments (n) = 10…

Q: A brand new pick-up truck was bought for Php420,000 downpayment and monthly installments of…

A: Lets understand the basics. When asset is purchased against the some downpayment and monthly…

Q: A business is generating an annual income of $19,000 for the next ten years with a salvage value of…

A: Here, Annual Income is $19,000 Salvage Value is $190,000 Interest Rate (r) is 10% Time Period (n) is…

Q: An equipment was purchased for P100,000 cash and the balance will be paid at the end of each quarter…

A: Interest rate = 6% Quarterly Payment = P 20,000 Time Period = 5 Years

Q: Precision Engineering invested $95,000 at 5.5 percent interest, compounded annually for 2 years. How…

A: According to the time value of money concept, the money available today has some different…

Q: A certain company pays a bonus to each engineer at the end of each year based on the company’s…

A: Total bonus paid per year = Number of engineers * Annual bonus per engineer = $3000 * 6 = $18000…

Q: what is the equivalent uniform annual expense over 30 years if the annual interest is 6%?

A: Equivalent Annual Cost = NPV × r 1 − (1 + r)-n

Q: A crane rental company has acquired a new heavy-duty crane for $260,000. The company calculates…

A: Depreciation is a non-cash expense which is incurred due to a continuous use of fixed asset.…

Q: An asphalt road requires no upkeep until the end of 2 years when P60,000 will be needed for repairs.…

A: Equivalent Annual cost: Equivalent Annual cost (EAC) is the yearly expense of buying, working, and…

Q: A parcel of land can be leased for a period of 10 years. Initial development costs for clearing,…

A: Initial cost (C) = P 250000 First year revenue (R) = P 22000 Growth rate (g) = 5% n = 10 years r =…

Q: A granite company is planning to buy a fully automated granite cutting machine. If it is purchased…

A: The time value of money is a concept that is used to measure the value and worth of a sum of money…

Q: A building is priced at $100,000. If a downpayment of $30,000 is made, an a payment of $1,000 every…

A: The number of months required to pay off the amount can be calculated with the help of NPER function…

Q: A car can be purchased for P650,000 when new. There follows a schedule of annual operating expenses…

A: Operating expenses are those expenses which are incurred for the purpose of operating an asset.…

Q: Franchise. Seattle Corporation pays a franchise fee of $20 million to enable it to sell Good's…

A: a . Annual Amortization = Franchise cost / useful life…

Q: One Company has offered a small company two method by which to pay for some needed roof repairs.…

A: Method 1 Payment = 16500   Method 2 Payment = 26400 Time Period of payment = 2 years Interest Rate =…

Q: Lukas Center acquired a new Laser Machine worth ₱580,000.00. The center plans to pay 35% advance…

A: Amortization is the action or process of gradually writing off the initial cost of an asset.

Q: An annual maintenance cost of a generator is P1000 after two years and it is estimated to increase…

A: The question is based on the concept of Financial Accounting. As the cost is increasing by 10% per…

Q: Edmund spent the following amounts for the maintenance of the machine she bought: PhP 4,000 each…

A: Maintenance cost for 1 to 5 year = 4000 each year  Maintenance cost for 6 to 10 year = 6000 each…

Q: An asphalt road requires no repairs until the end of 2 years. At the end of 3rd year, P90,000 will…

A: Here, Here, From Year 1 to Year 2, Repair cost is P0 From Year 3 to Year 7, Repair Cost is P90,000…

Q: A crane rental company has acquired a new heavy-duty crane for $300,000. The company calculates…

A: Depreciation expense refers to the fall in the value of the asset due to passage of time, wear and…

Q: A piece of equipment costs ₱351,000 including shipping, installation and taxes. The supplier assures…

A: Sum - of-the -Years Digit method:   The sum of the year's digit depreciation is one method for…

Q: A contractor bought a concrete mixer at P120,000,00, if paid in cash, The mixer may also be…

A: given information  initial investment = P120,000 total no of years = 5 years interest rate = 8%

Q: A contractor’s price for a new building was $96,000.  You decide to buy the building, making a…

A: Payments to the loans are made by equal instalments which carry both interest and payment of…

Q: The repair costs for some handheld equipment at the office of NAIA is estimated to be P 120,000 in…

A: Office needs to deposit the amount that is equal to the present value of the repair costs for the…

Q: Edmund spent the following amounts for the maintenance of the machine she bought: PhP 4,000 each…

A: Concept. Equivalent uniform annual cost is used by the firms in capital budgeting decisions. Cost of…

Q: A building is priced at $300,000. If a buyer makes a down payment of $100,000 and a payment of…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: A company rent a building for P50,000 per month for a period of 10 years. Find the accumulative…

A: ​FV of Ordinary Annuity​=C×[(1+i)n−1/i​] where: C=cash flow per period i=interest rate n=number of…

Q: Investment in a crane is expected to produce profit from its rental of $15,000 during the first year…

A: present worth formula: present worth = future value1+rn where, r=rate n=number of years

Q: d new delivery truck was bought PHP 420,000 down payment and monthly instalment of PHP 10,000 at the…

A: Loans are paid by the down payment and monthly payments that carry the payment of interest and…

Q: A certain company has the following maintenance cost for all of its machine. On the first 5 years,…

A: The amount the company will pay today can be found using the present value concept.  By discounting…

Q: The Owner of Blue Bayou Café usually pays his appliance (refrigerators, dish washers, and freezers)…

A: The given information as follows:

Q: A company is considering purchase of a machinery costing OMR 45,000, It has a life of 3 years and…

A: The payback period is a method of capital budgeting that helps to tells that in how many period the…

Q: A company that makes self-clinching fasteners expects to purchase new production-line equipment in 3…

A:

Q: paying PHP17,000 every year for 7 years, each payment being made in the beginning of each year. The…

A: Since the payments are made at the start of the year so to find the cash price that is the present…