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- A grocery store is considering the purchase of a new refrigeration unit with an Initial Investment of $412,000, and the store expects a return of $100,000 in year one, $72000 in years two and three, $65,000 in years four and five, and $38,000 in year six and beyond, what is the payback period?Machine A costs $500,000 to purchase, result in electricity bills of $100,000 per year, and last for 12 years. Machine B costs $600,000 to purchase, result in electricity bills of $85,000 per year, and last for 15 years. The discount rate is 9%. What are the equivalent annual costs for two models? Which model is more cost-effective?Elijah Enterprises will need to upgrade the computer system in 5 years. They anticipate the upgrade to cost $98,900. If the discount rate is 15%, 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.
- Elijah Enterprises will need to upgrade the computer system in 6 years. They anticipate the upgrade to cost $95,300. If the discount rate is 15%, 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 / =Two 100 horsepower motors are being considered for use: If power costs $0.10 per kWh, and if the interest rate is 12%, how many hours of operation per year is required to justify the purchase of XYZ brand motor? (1 hp = 0.746 kW). Which motor would you select if the motor is expected to operate 2,000 hours per year? Explain why.An energy conservation option with a first cost of $10,000 is installed. It requires $600 per year maintenance and saves $ 5000 per year in utilities. If the maintenance costs escalate at 3%, utility costs escalate at 5% and the discount rate is 12%, what is the 3-year life cycle cost?
- An incandescent nightlight bulb costs only $.30, last three years and uses $1.00 of electricity each year. An LED lightbulb costs $4, lasts eleven years, and uses $0.10 of electricity a year. If the discount rate is 17%, which is the better choice?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?It is estimated that the maintenance cost on a new car will be $350 the first year. Each subsequent year, this cost is expected to increase by $250. How much would you need to set aside when you bought a new car to pay all future maintenance costs if you planned to keep the vehicle for 15 years? Assume interest is 6% per year.
- 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 have purchased an equipment costing $20,000. The equipment will be used for two years, and at the end of two years, its salvage value is expected to be $10,000. The equipment will be used 6,000 hours during the first year and 8,000 hours during the second year. The expected annual net savings will be $30,000 during the first year and $40,000 during the second year. If your interest rate is 10%, what would be the equivalent net savings per machine-hour?An energy-efficient motor may be purchased for $3,000 that will last for 5 years. It will save $800 in year one, and savings will increase by 8% annually, thereafter. It will cost $100 to maintain in year two, and increase by 10% thereafter. Given our company uses 10% as a rate of return, calculate the present worth. How much must the first annual cost increase for the motor to no longer be cost effective?