By purchasing training software for $5,000, you can eliminate other training costs of $3,200 each year for the next 10 years. What is the NPV of the software? Use a discount rate of 10.2%. O $13,582 O $15,411 O $14,494 O $15,081 O $15,776
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- Your company is looking at purchasing a front-end loader at a cost of $120,000. The loader can be billed out at $107.00 per hour. It costs $30.00 per hour to operate the front-end loader and $37.00 per hour for the operator. The useful life of the equipment is five years. Using 1,200 billable hours per year and a MARR of 10%, determine the payback period with interest for the front-end loader. 2.89 4.15 4.52 3.74 3.02 Please write to text formet but don't copy pasteyou are asked to approve or deny a request to purchase a new printer which costs 34,000 now but will increase efficiency and save $6500 cash/year for the next 6 years and can be sold after 6 years for $2,000. The discount rate is 12% Approve Deny (Show why using Net Present Value) What would be the cash payback period. Round to one decimal point. show all workYou can purchase an equipment for $4,000. The equipment will provide benefits worth $900 a year. The expected life of the equipment is 8 years. It is expected that the price of the equipment will decrease by 15% per year. If the discount rate is 12%, would you buy the equipment today or will wait to purchase? When is the best time to purchase it? give excel file solution
- Your company is considering a purchase of a $580,000 computer-based order entry system. The system will be depreciated straight line to zero over its 5-year life. It will be worth $69,000 at the end of that time. You will save $178,000 before taxes per year in order processing costs, and you will be able to reduce the working capital by $84,000 (a one time reduction). a) If the tax rate is 21%, what is the IRR?After spending $ 9 comma 100 on client-development, you have just been offered a big production contract by a new client. The contract will add $ 199 comma 000 to your revenues for each of the next five years and it will cost you $ 104 comma 000 per year to make the additional product. You will have to use some existing equipment and buy new equipment as well. The existing equipment is fully depreciated, but could be sold for $ 53 comma 000 now. If you use it in the project, it will be worthless at the end of the project. You will buy new equipment valued at $ 27 comma 000 and use the 5-year MACRS schedule to depreciate it. It will be worthless at the end of the project. Your current production manager earns $ 79 comma 000 per year. Since she is busy with ongoing projects, you are planning to hire an assistant at $ 42 comma 000 per year to help with the expansion. You will have to immediately increase your inventory from $ 20 comma 000 to $ 30 comma 000. It will return to $ 20…a new process for a manufacturing process will have a first cost of $45,000 with annual costs of $38,000. Extra income associated with the new process is expected to be $62,000 per year. What is the discounted payback period at i=12% per year? Options: 2.48 3.23 2.25 4.52
- Max is planning to buy an equipment. Model X cost $300 to purchases and result is a costing savings of $150 per year, and last for 5 years. Model Z cost $450, result in costs savings of $130 per year, and last for 10 years. The discount rate is 20%. Required: c. Calculate the Payback period for both the models.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 initial cost needed to set up your freelancing engineering design service is $50,000. The salvage value of the equipment you purchased is $2,500 after five years. You estimated that each hour of design would cost you $75 per day. If you offered your services online with a price of $310 per day, how many days per year must you work to break even if the interest rate is 10% per year?
- camber crporation has to decide if they can finance purchasing 10 new machines for all their manufacturering site.the machine cost 1.73 million each ,and the supplier agreed to the following payment terms ,40%upfront and the remainder to be paid over 4 years at an annual rate of 12% Executives review their budgets and discover that they can pay supplier 40% now but their budgets only allow them to pay 4 million per year for the next four years ,will that be enough to make the purchase and critically discuss the effect of the increasing amount paid upfront when corporation make capital purchase focusing on the benefits and drawbacks , should show each step in calculationsYou are thinking of opening a small copy shop. It costs $5500 to rent a copier for a year, and it costs $0.03 per copy to operate the copier. Other fixed costs of running the store will amount to $450 per month. You plan to charge an average of $0.10 per copy, and the store will be open 365 days per year. Each copier can make up to 100,000 copies per year. a) For a charge per copy between $0.07 to $0.11 and daily demands of 500, 1000, 1500, and 2000 copies per day, find annual profit. That is, find annual profit for eachof these combinations of charge per copy and daily demand. b) If you charge 0.09 per copy, what daily demand for copies will allow you to break even? c) Graph profit as a function for a charge per copy (between $0.07 to $0.11) for a daily demand of 500 copies; for a daily demand of 2000 copies. Interpret your graphs and label your graphs properlyElijah Enterprises will need to upgrade the computer system in 4 years. They anticipate the upgrade to cost $105,300. If the discount rate is 13%, what will be the required yearly investment needed to obtain the money for the upgrade?Round your (1+R)^n value to 2 decimal places and use that number for your final amount required rounded to the nearest dollar. Future Value / (1+R)^n = Amount Required / = What would be required if the discount rate was 8%? Future Value / (1+R)^n = Amount Required / =