From the data shown, determine the ESL of the equipment assuming MARR of 15%. Years Retained Market Value M&O Cost $28,000 $24,000 $22,000 $20,000 $15,000 -$48,000 $49,000 $50,000 -$51,000 3 O ESL = 1 year %3D O None of the above O ESL = 3 years O ESL = 4 years %3D ESL = 2 years %3D
Q: A CNC mill was purchased 4 years ago for $60,000. Even though it is still a productive machine, a…
A:
Q: 1. A piece of construction equipment was bought 3 years ago for $ 500,000, expected li: of 8 years…
A: PW stands for present worth. EAC stands for equivalent annual cost, it can be calculated by dividing…
Q: ABZ & Company purchased a factory machine of Php. 51,000 on January 1, 2015. The machine is expected…
A: Straight-line method:- A typical form of depreciation that reduces the worth of a fixed asset over…
Q: A small manufacturing firm is considering the purchase of a new machine to modernize one of its…
A: 1. There are four alternatives for the firm; to buy machine A or B and lease machine A or B. thus,…
Q: A net present worth equation is used to solve for a ROR by setting the net present worth equation…
A: a. Zero Rate of return (RoR): is a relative used percentage method in order to measures. with the…
Q: An investment of $20,000 in new equipment will generate income of $7000 per year for 3 years, at…
A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…
Q: A remotely situated fuel cell has an installed cost of $2,000 and will reduceexisting surveillance…
A: Salvage value can be calculated by using the following formula. Interest rate is denoted for MARR.
Q: Engineering economy - ENGR 3322 A new municipal refuse-collection truck can be purchased for…
A: Cost of Truck = 84,000 life = 6 MV = 0 Receipt less Expenses per year = 18,000 MARR = 19%
Q: Texas Popcorn Corporation is planning to fully automate it process. The company CEO is currently…
A: To find the best machine to choose from we will use the metric of present worth which is the…
Q: The First cost of a passenger bus is P800,000. Its estimated life is 4 years with no salvage value.…
A: Given: Day wise Yearly Days of operation 300 Tires 24000 Gasoline 900 270000 Oil 80…
Q: n initial investment of P530,000 is estimated to bring in yearly cash inflow of P52,000 for 6 years.…
A: The initial investment for the project is = $530,000 Expected cash inflow for the next 6 years =…
Q: When capital recovery (CR) is calculated, the annual operating maintenance (AOC) is: Select one: O a…
A: Disclaimer- “Since you have asked multiple question, we will solve the first question for you as per…
Q: FedEx has installed a new radio frequency packages that are incorrectly delivered. The capital…
A: Capital invested= $65000 MARR= 20% EOY Savings 1 $25000 2 $30000 3 $30000 4 $40000 5…
Q: A project is estimated to cost P110,000, last 8 years and have a P15,000 salvage value. The annual…
A: Dear Student as you have posted multiple sub-parts in a question but we are allowed to attempt only…
Q: A firm is considering the purchase of a new machine to increase the output of an existing production…
A: Production process: Consider the items you use on a daily basis: they were all made or manufactured…
Q: The LaGrange Corporation had the following budgeted sales for the first half of the current year…
A: Cash flow is the movement of money in and out of a company. Cash received signifies inflows, and…
Q: The Flynn manufacturing company is undergoing a review by the board of regents for expounding their…
A: Given: Time period=5 years MARR=15%
Q: A project has an initial cost of $50 000, net annual cash inflows of $20 000, and a $2 000 salvage…
A: Answer is given below
Q: What is the breakeven point (in units) for Press A? 10,657 11,111 12,432 14,286 What is the…
A: Answer: Given values: Size A: Fixed cost = $200,000 Variable cost = $6.00 Selling price =…
Q: Texas Popcorn Corporation is planning to fully automate it process. The company CEO is currently…
A: Salvage Value refers to the value that the owner of a certain machine or asset receives while…
Q: Which of the following statements is correct? O a. MARR is set higher than the WACC b. MARR is set…
A: Note: We will answer one question as the exact one was not specified. Please resubmit a new question…
Q: Consider the following cash flow profile and assume MARR is 10%/yr. Solve, a. Determine the ERR for…
A: (a) The formula to compute the economic rate of return is: ERR=Lower discount rate+NPV at lower…
Q: Use Excel® to solve the following problem. An eight-year life project has an initial capital…
A: Given, An eight year life project Initial Capital expenditure= $450,000 Annual Income=$300,000 at…
Q: A machine was purchased and installed 6 years ago for $50000 with a useful life of 10 years. The…
A: Given: installed 6 years ago Initial Cost = $50000 Machine life = 10 years salvage value now =…
Q: An investment of P 250,000 can be made in a project that will produce a uniform annual revenue of P…
A: Given that, First cost =P 250,000 Operation and maintenance=P 72,000 per year Taxes and insurance…
Q: the project' s net cash flow is listed as follows. Please calculate its simple payback period and…
A: a. payback period=period prior to full recovery+unrecovered cashflowcashflow during full recovery…
Q: The Flynn manufacturing company is undergoing a review by the board of regents for expounding their…
A: The best alternative approach for calculating the dynamic calculations of an investment is the net…
Q: Milliken uses a digitally controlled dyer for placing intricate and integrated patterns on…
A: To find the Present worth , Annual Worth & Internal Rate of Return we first compute the After…
Q: The city of Oak Ridge is considering the construction of a four kilometer (km) greenway walking…
A: Initial cost =4 km × $1000 = $4000Maintenance cost = 4×300=$1200Number of years, n= 20 yearsInterest…
Q: A project is estimated to cost P100,000, lasts 8 years, and have a P10,000 salvage value. The annual…
A: Cash flow: Income is the net measure of money and money reciprocals being moved into and out of a…
Q: Texas Popcorn Corporation is planning to fully automate it process. The company CEO is currently…
A: We have given the three alternatives, summarize below Alternative A B C Initial cost 450,000…
Q: CASH FLOW DIAGRAM Calculate the capitalized cost of a project that has an initial cost of P8,000,000…
A: Solution given below,
Q: Question (1): Mark "True" for the correct phrases and "False" for the incorrect phrases * True False…
A: PLEASE BE NOTED THAT AS PER THE BARTLEBY GUIDELINES I HAVE SOLVED THE FIRST THREE SUB-PARTS. PLEASE…
Q: it is correct to say CR capital recovery cost is the annual equivalent of a capital cost. 2a True Ob…
A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…
Q: Texas Popcorn Corporation is planning to fully automate it process. The company CEO is currently…
A: To solve for above problem we take repeatability assumption , which implies the repurchase of the…
Q: Milliken uses a digitally controlled dyer for placing intricate and integrated patterns on…
A: To find the Present worth , Annual Worth & Internal Rate of Return we first compute the After…
Q: Calculate the capitalized cost of a project that has an initial cost of P3,500,000 and an additional…
A: Capitalised cost of any project is calculated when analysis period is considered to be infinite.
Q: TEI incorporated is considering the use of concrete electric pole in the expansion of its power…
A: The life of each option is different so either we can use the AW method or repeat method in PW
Q: False True As long as the net worth of all cash flows at any time point is greater than zero , then…
A:
Q: A person considers an inversion that saves 100,000 a year. annual taxes equal to 2% of its value per…
A: *Hi there , as you have posted multiple question as per our guidelines we will only solve the first…
Q: estment of ₱9,000,000 is required for a proposed manufacturing plant and an estimated working…
A: Investment 90,00,000 Working Capital 20,00,000 Annaul depreciation 900000 Annual Revenue…
Q: factory purchased new heavy-duty equipment and intended to be used for 4 years. The information is…
A: Below is the given values: Initial cost = -275000 Annual cost = 5000 Salvage value = 125000 Time = 4…
Q: A manufacturing company is evaluating an investment plan to produce a new product based on the…
A: Here we calculate the break-even sales value of product by using the break even analysis and choose…
Q: A power plant is being considered in the dead sea location. For an initial investment of $X1…
A: Payback period is the number of years that an investment takes to recover its purchase value.…
Q: DelRay Foods must purchase a new gumdrop machine. Two machines are available. Machine 7745 has a…
A: The correct answer is given in the second step.
Q: Texas Popcorn Corporation is planning to fully automate it process. The company CEO is currently…
A: Annual worth analysis is a financial assessment that calculates the present value of a stream of…
Q: A fixed capital investment of ₱87,000,000 is required for a proposed manufacturing plant and an…
A: Investment 87000000 Working Capital 3000000 Annual depreciation 9570000 Annual Revenue 2778000
Q: Determine the capitalized cost of a machine that was purchased for P100, 000 and requires annual…
A: Capitalized cost in case of infinite period. Capitalized cost is the present worth of a constant…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Maxx International is considering one of two forklifts trucks for its assembly plant. Truck A costs $15,000 and requires $3,000 monthly in operating expenses. It will have a salvage value of $5,000 at the end of its three-year service life. Tuck B costs $20,000 but requires only $2,000 annually in operating expenses; its service life is 4 years; at which time, its expected salvage value will be $8,000. The MARR is 10%. Assuming that the trucks are needed for 12 years and that no significant changes are expected in the future price and functional capacity each truck, select the most economical truck based on AE analysis. Fill in the blanks: Costs of ownership for truck A Operating costs for truck A ........................................ Total annual costs for truck A ....................A small manufacturing firm is considering the purchase of a new machine to modernize one of its current production lines. Two types of machines are available on the market. The lives of machine A and machine B are 4 years and 6 years, respectively, but the firm does not expect to need the service of either machine for more than 5 years. The machines have the following expected receipts and disbursements. Item Machine A (USD) Machine B(USD) First cost 325k 425k Service life 4 years 6 years Estimated Salvage Value 30k 50k Annual Opertaing & Maintenance Costs 40k 26k Oil Filter Change every other year 5k NONE Enginer Overhaul 10k every 3 years 14k every 4 years The firm always has another option: To lease a machine at 150k a year, fully maintained by the leasing company. After four years of use, the salvage value for machine B will remain at 50k. How many decision alternatives are there?…Two lathes are being considered in the manufacture of certain machine parts. Data is given below, all cost in peso: REQUIRED:a. Determine the number of machine parts/year that could be produced so that 2 lathes will be equally economical ifthe MARR is 18%. Use AWMb. If the number of parts is 10,000 units, which lathe will you recommend? Use RORc. If the number of parts is 10,000 units, which lathe will you recommend? Use PWM
- : A machine was purchased and installed 6 years ago for $50000 with a useful life of 10 years. The salvage value is now $5500 and decreasing at a rate of $500 per year. The machine has a maintenance cost of $2000 per year. Assuming a 12.4% MARR, should the company replace the machine this year with a potential new machine that has a EUAC of $3000 per year? (show your work)n Project A Project B 0 -$7,000 -$5,000 1 -$2,500 -$2,000 2 -$2,000 -$2,000 3 -$1,500 -$2,000 4 -$1,500 -$2,000 5 -$1,500 -$2,000 6 -$1,500 -$2,000 7 - -$2,000 8 - - Suppose projects A and B are mutually exclusive. The required service period is 8 years and comparable equipment will be leased for $3,000 per year payable at the end of each year for the remaining years of the required service period. Which project is a better choice at 15%? Use PW(15%) criterion and show your equation with numbers plugged into factors and your numerical result for each option.The equivalent uniform annual worth (EUAW) may be determined from net future worth NFW from using the equation, EUAW = FW( A/P, i, n). True / False
- A small company purchased now for $23,000 will lose $1,200 each year for the first 4 years. An additional $8,000 invested in the company during the fourth year will result in a profit of $5,500 each year from the fifth to the fifteenth year. At the end of 15 years, the company can be sold for $33,000.a. Determine the IRRb. Calculate the FW if MARR = 12%c. Calculate the ERR when є = 12%.A remotely situated fuel cell has an installed cost of $2,000 and will reduceexisting surveillance expenses by $350 per year for eight years. The border security agency’s MARR is 10% per year. Solve, a. What is the minimum salvage (market) value after eight years that makes the fuel cell worth purchasing? b. What is the fuel cell’s IRR if the salvage value is negligible?(Show the cashflow diagram if needed) A project is estimated to cost P100,000, lasts 8 years, and have a P10,000 salvage value. The annual gross income is expected to average P24,000 and annual expenses, excluding depreciation, will total P6,000. If capital is earning 10% before income taxes, determine if this is a desirable investment using PWM and FWM.
- Five machines were originally estimated to have useful life of twelve years. If sold now, each can be sold for P5,500. The annual operating costs for each are one operator at P22.00 a day, 300 days a year; a yearly energy utilization is 6,000 kw-hr at P0.50 per kw-hr; upkeep including spare parts are estimated P700 a year. Taxes and insurance are 7% of first cost. The machine has the same capacity as the fivbe machines and is now available at an estimated first cost including installation of P80, 000. Sinking fund method is used at 15% in computation od depreciation. Will you recommend replacementif money is worth 20% to a company?Your company is considering the introduction of a new product line. The initial investment required for this project is $500,000, and annual maintenance costs are anticipated to be $45,000. Annual operating costs will be directly proportional to the level of production at $8.50 per unit, and each unit of product can be sold for $65. If the MARR is 15% and the project has a life of 5 years, what is the minimum annual production level for which the project is economically viable? The equipment can be sold for $80,000 at the end of five years.In a $ 80,000 investment project, it is estimated that annual after-tax net cash flows of $ 20,000 will be received over 5 years. Estimate the range of the Internal Rate of Return for this project Here are the options: - It has no IRR - [0,5%) - Greater than 10% - [5%,10%)