Based on the information below, please conduct a break even analysis Startup Costs License: $1,500 Permits: $1,000 Rental lease costs (rent advance/deposit): $25,000 Equipment/Capital Costs Purchase of business: $100,000 Start-up capital: $100,000 Food equipment: $150,000 Computer equipment: $5,000 Computer software: $25,000 Insurances: $30.000 Uniforms: $2,000 PPE: $3,000 Phones: $4,500 Flyers/Business Cards: $500 Total: $63,000 Security system: $6,000 Total: $390,500
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- A lessor made an investment of ₱550,000 in equipment with an expected life of 5 years. He determined that he will incur the following annual costs: Costs of sales₱120,000; Marketing, admin, and maintenance ₱150,000. Tax rate is 25%. Annual depreciation is ₱110,000. Cost of capital is 11%. The breakeven lease per year would be? ₱ 460,000 ₱ 503,717 ₱ 521,756 ₱ 468,203 ₱ 436,127 ₱ 324,846A lessor made an investment of ₱550,000 in equipment with an expected life of 5 years. He determined that he will incur the following annual costs: Costs of sales₱120,000; Marketing, admin, and maintenance ₱150,000. Tax rate is 25%. Annual depreciation is ₱110,000. Cost of capital is 11%. The breakeven lease per year would be?a. ₱ 460,000 b. ₱ 503,717 c. ₱ 521,756d. ₱ 468,203 e. ₱ 436,127 f. ₱ 324,846A special-purpose machine toolset would cost $30.000. 1l1e entire capitalexpenditure ($30.000) is 10 be borrowed with the stipulation that it be repaid by two equal end-of-year payments at 12% compounded annually. 11rn tool is expected to provide annual savings (in the material) of $45,000 for two years and is to be depreciated by the MACRS Three-year recovery period.111is special machine tool will require annual O&M costs in the amount of $12,000.111e salvage value at the end of two years is expected 10 be $9,000. Assuming a marginal tax rate of 40% and MARR of 15%. what is the net present worth of this project?
- sing ACM, determine hourly rate to charge for this scenario: Machine cost $350,000 (w/tires) Regular maintenance $20,000 per yr Tires replaced once after 3 years; cost $4,000 present and in future Major repair in year 3 for $10,000 Salvage for $90,000 after 6 years 1,800 hrs/yr MARR = 6%A firm can purchase a centrifugal separator (5-year MACRS property) for$17,000.The estimated salvage value is$3,000after a useful life of six years. Operating and maintenance (O&M) costs for the first year are expected to be$1,700.These O&M costs are projected to increase by$1,500per year each year thereafter. The income tax rate is23%and the MARR is12% after taxes. What must the uniform annual benefits be for the purchase of the centrifugal separator to be economical on an after-tax basis?Task: evaluate the payoffs from buying the asset versus using it on a lease arrangement. Given: The equipment costs €2000 000 Interest rate on debt 8%. Depreciation MARCS (Modified Accelerated Cost Recovery Sys): 35% first year; 40% second year, 15% third year; and 10% fourth year. Marginal tax rate = 30%. If the firms buys the equipment, there is a four year maintenance cost of €30 000 payable at the beginning of each year. If the equipment is leased: Firm could obtain a 4-year lease which includes maintenance. Rental payment would be €500,000 at the beginning of each year. Residual (salvage) value at t = 4: €200,000.
- An industrial firm can purchase a certain machine for $40.000. A down payment of S-1.000 is required. and the balance can be paid in five eq ual year-end installments at 7% interest on the unpaid balance. As an alternative. the machine can be purchased for $36,000 in cash. If the firm 's MARR is 10%, determine which alternative should be accepted using the annual- equivalence method.A special-purpose machine toolset would cost $30.000. 1l1e entire capitalexpenditure ($30.000) is 10 be borrowed with the stipulation that it be repaid by two equal end-of-year payments at 12% compounded annually. 11rn tool is expected to provide annual savings (in the material) of $45,000 for two years and is to be depreciated by the MACRS Three-year recovery period. This is a special machine tool will require annual O&M costs in the amount of $12,000.111e salvage value at the end of two years is expected 10 be $9,000. Assuming a marginal tax rate of 40% and MARR of 15%. what is the net present worth of this project?Evaluate the following project using PW method. The MARR is set to 12% per year Initial Investment - 13,000 Useful Life - 15 yrs Annual Operating Expenses - 1000 Overhaul cost EOY 5 - 200 Overhaul cost EOY 10 - 550
- An industrial firm can purchase a certain machine for $40.000. A down payment of $-1.000 is required. and the balance can be paid in five equal year-end installments at 7% interest on the unpaid balance. As an alternative. the machine can be purchased for $36,000 in cash. If the firm 's MARR is 10%, determine which alternative should be accepted using the annual-eq uivalence method.Roche Brothers is considering a capacity expansion of itssupermarket. The landowner will build the addition to suit inreturn for $200,000 upon completion and a 5-year lease. Theincrease in rent for the addition is $10,000 per month. Theannual sales projected through year 5 follow. The currenteffective capacity is equivalent to 500,000 customers per year.Assume a 2 percent pretax profit on sales.Year 1 2 3 4 5Customers 560,000 600,000 685,000 700,000 715,000Average Salesper Customer$50.00 $53.00 $56.00 $60.00 $64.00a. If Roche expands its capacity to serve 700,000 customers peryear now (end of year 0), what are the projected annual incre-mental pretax cash flows attributable to this expansion?b. If Roche expands its capacity to serve 700,000 customersper year at the end of year 2, the landowner will build thesame addition for $240,000 and a 3-year lease at $12,000 permonth. What are the projected annual incremental pretaxcash flows attributable to this expansion alternative?Valentino Yacht Supply has assets valued at $1.2 million and liabilities of $.98 million. The firm wants to obtain new equipment via a capital lease. The equipment costs $200,000 and the present value of the lease payments is $175,000. With the lease, the firm’s balance sheet will show assets of ____ and liabilities of ____.