A stopwatch used for TMS has a selling price of P1,500. If its selling price is expected do decline at a rate of 10% per year due to obsolescence, what will be its selling price after 3 years using DBM?
Q: 2
A: The time period required for an investment to recuperate the amount expended for making such…
Q: Heiko Company, a manufacturer of moderately priced timepieces, would like to introduce a new…
A: Target cost per watch = Sales price per watch - Desired profit per watch
Q: Indicate the formula, given and the complete solution. A VOM has a selling price of Php 500. It is…
A: Declining balance method of depreciation is also known as reducing balance method. Assets under…
Q: Red-Star Co. wants to sell an electrical generator for AED 165,000 in 2024. The price of this…
A: Given information: Future value of generator is AED 165,000 Discount rate is 9.5% Price of this…
Q: Home Innovations is evaluating a new product design. The estimated receipts and disbursements…
A: The discounted payback period is a capital budgeting technique used to determine the time period in…
Q: Income from the sale of application software (apps) is usually constant for several years and then…
A: EAA formula: EAA=r×NPV1-1+r-n where, r = rate of interest n = no of years
Q: A convenience store is looking into the possibility of installing a 24/7-automated refill system to…
A: Annual worth method we need to find out total annual cost of operating the equipment and compare…
Q: Income from the sale of application software (apps) is usually constant for several years and then…
A: Equivalent annual income = Interest rate ×Net present value1-(1+interest rate)-number of years=10%…
Q: Regina Industries has a new product whose sales are expected to be 1.2, 3.5, 7, 5, and 3 million…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: Determine the NPV for the following: An information system will cost $95,000 to implement over…
A: According to the information provided: Cost in Year 0 = $95000 Savings in Year 1 = $30000 Saving in…
Q: 3
A: The question is based on the concept of profitability index, which is a project appraisal technique.…
Q: (a) Calculate the break-even point? (b) Suppose the company wanted to produce 100000 mobiles in the…
A: Given, Planed to manufacutre = 50000 mobiles sell Price = 150 OMR Fixed Cost = 3,000,000 Total…
Q: An investment company wants to study the usage of new technology for one of its clients. This…
A: Human Hour Per month = 187 Average Savings per Human hour = $450 Average savings per month =…
Q: Mikes Bike Co. currently sells 11 million bike tires each year at a price of $17 per tire. It is…
A: Given Information, Price of each tire = $17 Price of Improved tire = $23 each Cost of old tire to…
Q: Meggitt Systems, a company that specializes in extreme-high-temperature accelerometers, is…
A: Given: Present value= $280,000 Interest rate =12%
Q: A large electronic retailer is considering the purchase of software that will minimize…
A: Net present value (NPV) is a method for assessment of financial profitability of a project. NPV is…
Q: Joycast expects that there is an 5% chance of a loss of $5 million next year. If Joycast conducts…
A: NPV: When the present value of inflows is above the present value of outflows, then it is called…
Q: Hyperion Inc., currently sells its latest high-speed colour printer, the Hyper 500, for $354. Its…
A: The above mentioned sales price decision can be taken by comparative ananlysis of cost volume…
Q: Modern Artifacts can produce keepsakes that will be sold for $60 each. Nondepreciation fixed costs…
A: Formulas:
Q: Hyperion, Inc. currently sells its latest high-speed color printer, the Hyper 500, for $350. It…
A: Part-1.On reducing the prices of product, the sales units have been increassed from 20000 units to…
Q: Your company is considering granting credit to a new customer. The variable cost per unit is RO 20,…
A: Calculation of break-even probability of default: Answer: The break-even probability of default is…
Q: A company is considering the purchase furniture at costing Rs 120,000 that would save Rs 30,000…
A: Net Present value is the capital budgeting technique that can be used by investors to assess various…
Q: A firm might purchase a computerized quality control system. The proposed system will cost $76,000,…
A: DISCOUNTED PAYBACK PERIOD FORMULA: discounted payback period=period prior to full…
Q: Projected annual sales of a LED keychain are projected to be 25,00025,00025,000 USD the first year…
A: Annual operating cash flows Ref Particulars Year 0 Year 1 Year 2 Year 3…
Q: Teddy Co plans to buy a new machine to meet expected demand for a new product, Product T. This…
A: Answer- Part 1 - Calculation of NPV - Nominal discount rate using Fisher effect: 1.057 x 1.05 =…
Q: Heiko Company, a manufacturer of moderately priced timepieces, would like to introduce a new…
A: The correct option is option “a”.
Q: Portland Savings and Loan is considering new computersoftware, which, because of installation and…
A: Given information : Year Cash flow 1 $20,000.00 2 $ - 3 $30,000.00 4…
Q: A Pumpkin Pie Manufacturing Company pays on the tenth day after purchase. The average collection…
A: The question is related to Working Capital Management. The Cash Conversion cycle is calculated with…
Q: Sensotech, Inc., a maker of microelectromechanical systems, believes it can reduce product recalls…
A: MARR is return that an proposal must earn to qualify for investment. Investors or Manager have…
Q: A fashion label is considering inclusive sizing which would expand its offerings to plus size and…
A: The break-even no. of pieces will be that number for which the NPV is nil. NPV is net present value.
Q: A northern California consulting firm wants to start saving money for replacement of network…
A: The computation is done below: The amount available will be $26,751.81
Q: Econo-Cool air conditioners cost $345 to purchase, result in electricity bills of $159 per year, and…
A: Note: As per Bartleby guidelines, only 3 parts can be answered. a) Equivalent annual cost of…
Q: Management is considering buying a pump that costs $20,000 and could save them $7,500 per year over…
A: Solution:- The investment should be made or not will depend on the Net Present Value (NPV). If NPV…
Q: ex Unlimited is working upon the renovation of its factory upcoming year and for they expect an…
A: In BCR ratio analysis we can calculate the annual cost and annual benefits and find out the ratio of…
Q: A robot’s first cost is $40,000, and its market value declines by 20% annually. The operating and…
A: Equivalent Uniform Annual Cost (EUAC) refers to the annual cash flows generated in the form of…
Q: Red-Star Co. wants to sell an electrical generator for AED 165,000 in 2024. The price of this…
A: In order to evaluate whether the selling price by the company is correct or not according to market…
Q: A maker of mechanical systems can reduce product recalls by 25% if it purchases new packaging…
A: Given information : Reduction rate = 25% Expected cost = $40,000 Time period = 4 years Minimum…
Q: Suppose a machine has a current resale price of $6000 and an annual operating and maintenance cost…
A: The minimum reasonable return rate, also abbreviated as MARR, or hurdle rate, is the minimum return…
Q: The Wildwood Widget Company needs a milling machine for its new assembly line. The machine presently…
A: Present worth analysis is an analysis in which we convert all the cash flows to present worth using…
Q: 2. A piece of equipment now is use at a plant has a market value of $35,000. This market value is…
A: The Economic Service Life: The economic service life of an asset when the annual worth of net costs…
Q: A seaI firm Trodent’s customers expects to decrease downtime by 0.3 as a result of the new seal…
A: Annuity Factor:- It is simplifying the process of calculating the present value of cash flow and…
Q: A company plans to modernize its facilities in 8 years. They estimate saving $9,518 per month if…
A: To Find: Capital Availability
Q: RVC makes a control valve regulator. How much can the company afford to spend now on new equipment…
A: Present value means the actual amount is adjusted with the interest rate so as to get the present…
Q: You are looking at purchasing a new computer for online class. Computer A costs $4000 now, and you…
A: Computer A Computer B Cost of Purchase 4000 2500 Upgrade N.A at Year 2 End Upgrade Cost…
A stopwatch used for TMS has a selling price of P1,500. If its selling price is expected do decline at a rate of 10% per year due to obsolescence, what will be its selling price after 3 years using DBM?
A. P1,000
B. P1,500
C. P150.50
D. P1,093.5
Step by step
Solved in 2 steps
- A seaI firm Trodent’s customers expects to decrease downtime by 0.3 as a result of the new seal design. If Iost production would have cost the company $110,000 per year for the next four years, how much could the company afford to spend now on the new seals, if it uses an interest rate of 0,1 2 per year?The unit price of personal computers, measured in constant dollars, is expected to decrease at an annual rate of 10%. However, the number of microcomputers purchased by the company is expected to increase over a5-year period at an annual rate of 30%. The unit price of a personal computer is currently $2,000. This year the company will purchase 100 microcomputers at the current price. Using a real interest rate of 8% and an inflation rate of 6%, determine the following: a. The yearly expenditures for personal computers over the 5-year period, measured in constant-worth dollars. b. The yearly expenditures for personal computers over the 5-year period, measured in then-current dollars. c. The single sum equivalent at the end of the current year of the expenditures on microcomputers over the 5-year period, measured in current dollars. d. The future worth equivalent of the expenditures on microcomputers at the end of the 5-year period, measured in then-current dollars.A product has sales of $7M this year, but sales are expected to decline at 10% per year until it is discontinued after year 5. If the firm’s interest rate is 15%, calculate the PW of the revenues.
- A small country is experiencing hyperinflation of 56% per month. A) By what percent have prices climbed after 5 months? B) If an item currently costs $14, how much will it cost after 1 year of such inflation? Text so i can copy ita. what is the EOQ for a firm that sells 5,000 units when the cost of placing an order is $5 and the carrying cost are $3.50 per unit? b. how long will the EOQ last? how many orders are placed annually? c. as a result of lower interest rates, the finnancial manager determines the carrying cost are now $1.80 per unit. what are the new EOQ and annual number of objects?The average cost of a certain model car was $22,000 ten years ago. This year the average cost is $35,000. (a) Calculate the average monthly inflation rate (fm) for this model. (b) Given the monthly rate fm, what is the effective annual rate, f, of inflation for this model? (c) Estimate what these will sell for 10 years from now, expressed in today’s dollars.
- You estimate that a planned project for your company has a 0.3 chance of tripling the investment in a year and a 0.7 chance of halving the investment in a year. What is the standard deviation of the return on this project? A.1.5625 B.1.3126 C.1.2247 D.1.1457The market volume for widgets is increasing by 15% per year from current profits of $300,000. Investing in a design change will allow the profit per widget to stay steady; otherwise profits will drop 3% per year. What is the present worth of the design change over the next 5 years? Ten years? The interest rate is 9%.A maker of mechanical systems can reduce product recalls by 25% if it purchases new packaging equipment. The cost of the new equipment is expected to be $40,000 four years from now. How much could the company afford to spend now, instead of 4 years from now, if it uses a minimum attractive rate of return of 12% per year?
- Determine the NPV for the following: An information system will cost $95,000 to implement over aone-year period and will produce no savings during that year. When the system goes online, the companywill save $30,000 during the first year of operation. For the next four years, the savings will be$20,000 per year. Assuming a 12% discount rate, what is the NPV of the system?The market for widgets is increasing by 15% per year from current profits of $2,000,000. Investing in a design change will allow the profit per widget to stay steady; otherwise the price will drop by 3% per year. If inflation in the economy is 4%, what is the present worth in Year-1 dollars of the savings over the next 5 years? 10 years? The interest rate is 10%.Hyperion, Inc. currently sells its latest high-speed color printer, the Hyper 500, for $350. It plans to lower the price to $300 next year. Its cost of goods sold for the Hyper 500 is $200 per unit, and thi year's sales are expected to be 20,000 units.a) Suppose that if Hyperion drops the price to $300 immediatley, it can increase this year's sales by 25% to 25,000 units. What would be the incremental impact on this eyar's EBIT of such a price drop?b) Suppose that for each printer sold, Hyperion expects additional sales of $75 per year on ink cartridges for the next years, and Hyperion has a gross profit margin of 70% on ink cartridges. What is the incremntal impact on EBIT for the next three years of a priced drop this year?
