(CLO-51 An airways company plans to invest now in order to be able replace aging airorat that will be delivered S years from w. much wi tha compeny et to tn the cost of replacing the aging aireraft is 130 milion and the company's interest rate is o per yeart Os3736.500 O537.365.000 O SI626.000 O sU6.260,000
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- A firm is considering purchasing equipment to manufacture a new product. The equipment will cost $3M, and expected net cash inflowsare $0.35M indefinitely. If market demand for theproduct is low, then over the next five years thefirm will have the option of discarding the equipment on a secondary market for $2.2M. Assume thatMARR = 12%, s = 50%, and r = 6%. What isthe value of this investment opportunity for the firm?The annual cost to maintain a cemetery plot is $75. If interest is 6% how much must be set asideto pay for perpetual maintenance?a. $1,150b. $1,200c. $1,250d. $1,300Consider a palletizer at a bottling plant that has a first cost of $150,000, operating and maintenance costs of $17,500 per year, and an estimated net salvage value of $25,000 at the end of 30 years. Assume an interest rate of 8%. What is the present equivalent cost of the investment if the planning horizon is 30 years? a. $335,000. b. $344,500. c. $360,000. d. $395,500.
- 14.28 A new toll bridge is to be constructed over the Green River at a cost of $120M. The bridge requires maintenance costing $4000 annually over its 50-year life. Every 10 years, the bridge will require repainting at a cost of $1M. The value to motorists using this bridge is estimated to be $1.60 per trip. If the interest rate is 10% and 25,000 vehicles per day travel over the bridge, how much toll should be charged for each crossing? Rounding that toll up to the nearest nickel, what is the consumers’ surplus? 14.29 A dam may be built at a cost of $10M to elimi- nate the periodic flooding that Lowville experi- ences. That flooding averages a cost of $300K per year. Additional expenses can be incurred to divert water to another area for irrigation, to add electric power generation, and to permit recre- ation. Which alternative is best? Since political support is crucial, allocate the costs to the uses. The…A businessman is considering the purchase of a machine that is expected to be obsolete in 5years. The machine is worthP100,000. The prevailing rate of interest is 15%. His estimate of the annual gross incomes fromthe use of the machine isas follows:Year Income1 20,0002 25,0003 35,0004 30,0005 28,000Total = P138 999Should the businessman purchase the machine?Annual maintenance for a machine are P 1,500.00 this year and are estimated to increase 10% each year every year. What is the present worth of themaintenance costs for six years if a.) i = 18%, b.) i = 10%, c.) i = 12%. (I want answer with formulas and process not excel)
- A five-year project has an initial fixed asset investment of $613,600, an initial net working capital investment of $22,200. The project will have an annual operating cash flow (OCF) of (-$76,540). The fixed asset is fully depreciated over the life of the project and has no salvage value. The net working capital will be recovered when the project ends. The required return is 11.7 percent. What is the project's equivalent annual cost, or EAC? O-$248,052.76 O-$182,309.18 O-$147,884.01 O $242,212.221. A machine cost P10M and will have scrap value of 10% of the first cost at theend of 10 years. If money is worth 12%. Find the annual investment and thecapitalized cost of the machine.9_relations among projects that cover all possibilities could be: Select one:a. independentb. mutually exclusivec. related and not mutually exclusived. all of the above 10_The amount you have to deposit in order to get $600 in the next 9 years at i=16% is: Select one:a. $4050b. $2527c. $3145d. $2763,9 Solve both please otherwise skip, I know bartleby policy 1 st 3 mcq solve compulsory.
- Consider a project that will bring in upfront cash inflows for the first two yearsbut require paying some money to close the project in the third year. A0 A1 A2 $6500 $4500 $13000 This is a simple borrowing project. Determine the borrowing rate of returnA Veterans Administration (VA) hospital isto decide which type of boiler fuel system will mostefficiently provide the required steam energy outputfor heating, laundry, and sterilization purposes. Thecurrent boilers were installed in the early 1950s andare now obsolete. Much of the auxiliary equipmentis also old and in need of repair. Because of thesegeneral conditions, an engineering recommendationwas made to replace the entire plant with a new boilerplant building that would house modern equipment.The cost of demolishing the old boiler plant wouldbe almost a complete loss, as the salvage value of thescrap steel and used brick was estimated to be onlyabout $1,000. The VA hospital’s engineer finallyselected two alternative proposals as being worthyof more intensive analysis. The hospital’s annualenergy requirement, measured in terms of steam output, is approximately 145,000,000 pounds of steam.As a rule of thumb for analysis, 1 pound of steam isapproximately 1,000 Btu, and 1 cubic foot…which process line should be built for a new chemical? the expected market for the chemical is 16 years. an 18% rate is used to evaluate new process facilities, which are compared with present worth. how much does the better choice save? First cost O &M cost/year salvage life A $14 M $2.5 M $2 M 8 years B 22 M 3 M 7.5 M 16 years