Q: Air-Conditioning System 1 Air-Conditioning System 2 -12.000 -8,000 er year -750 -125 alue, $ -100…
A: The annual worth is the net of the multitude of advantages and costs brought about more than a…
Q: You have an investment account that started with $4,000 10 years ago and which now has growh a. What…
A: a) Given that, Investment value at year 0 = $4000 value of investment at year10 = $110000 Annual…
Q: An investment proposal calls for a $417,805.55 payment now and a second $282,934.40 payment 9 years…
A: First Payment = 417,805.55 payment 9 years from now = 282,934.40 annual interest rate is 6%.
Q: As a shareholder of a Construction firm, it has been decided by the Board to purchase a new 18-…
A: Given the present purchase cost of truck = $60000Time = 12G = $400Annual expense = $18000Salvage…
Q: Patti's project has an IRR of 15 percent, first cost P, and annual savings A. She observed that the…
A: Given, First cost : P Annual Savings : A Salvage Value : Third of the First Cost =P/3 IRR : i = 15%…
Q: (LG 4.3) Savings of $5600 per year can be achieved through either a $14 000 machine (A) with a…
A: please find the detailed answer below.
Q: Iculate the total capital cost and the annual worth for the following cas w diagram (the time is…
A: According to the question, t = 5% One time payment = $50,000 , which mean that it is total capital…
Q: 4,000 For I-15%, Solve for the Equivalent Uniform Annual Cost (EUAC) in periods 1 thru 5. Provide…
A:
Q: 3. A machine with an initial price of $30,000 has an annual operating cost of $15,000 and a life of…
A: Using PW factor, PW of Machine 1 = 30000 - 15000(A/P, i, n) =…
Q: Measure of worth PW, ROR, B/C, ete. criterion
A: There are various ways in which alternatives could be evaluated on different criteria in order to…
Q: 4. Consider four mutually exclusive alternatives: A B D Initial Cost, $ $770.00 1406.30 2563.30…
A: The incremental internal rate of return calculates a financial return to an investor or business…
Q: what is the present worth (PW) for the following cash flow?. Use (i-6 Annual payment= $100 per year…
A: Given the number of years = 9 years Interest rate = 6% Annual payment = $100 First year return =…
Q: Perform a present worth analysis of equal service alternatives with the costs shown below, if the…
A: Here we calculate the present worth by using the MRR and conclude the final decision , so…
Q: Investment A costs dollar 10,000 today and payback 11,500 dollar two years from now. Investment b…
A: The cost of investment "A" = $10000 Payback amount after 2 years = $11500 The cost of investment…
Q: 5. For the cash flows shown below, use an annual worth comparison to determine which alternative is…
A: Given: The Rate of Interest = 12% To Find: The best alternative using annual worth comparison
Q: Consider the following two alternatives: Alternative Year B -$200.0 -$131.0 1 +77.6 +48.9 2 +77.6…
A: We are going to find the present worth for each project to answer this question.
Q: Calculate the present value PV (in dollars) of an investment that will be worth $1,000 at the stated…
A: Future Value = Present Value (1 + r / 100) ^ n FV = $1000 r = 4.7% / 4 = 1.175% (As it is compounded…
Q: Which is the answer? show steps with your formulas. Thank you
A: Present value is the current value of future sum of money in lump sum or installments with a stated…
Q: 01. Two alternatives have the following cash flows: alternative End of Year A B – $2000 + $800 +…
A: Present Values: Net present value of Alternative A = 800(P/A, 12%, 4) - 2000= 800…
Q: A new alloy can be produced by Process A, which costs $200,000 to implement. The operating cost will…
A: Interest rate=8% per year compounded quarterly means 2% per quarter Process A…
Q: Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life.…
A: Given Information in Question MARR (I) = 5%,Project Life (N) = 10 yearsInitial Cost = 28,000Annual…
Q: .ROR an additional investment 2. Annual cost method 3. The EUAC method 1.The present worth cost…
A: 1. A pace of return (RoR) is the net increase or loss of a venture throughout a predefined…
Q: Her cash flow at time period 0 i
A: Cash flow is a measure which calculates the net amount of cash which is being transferred into and…
Q: Consider the following cash flow profile and assume MARR is 10%/year. 1 2 3 4 EOY NCF -$100 $800…
A: IRR (internal rate of return ) is defined as the rate of return where the net present value of…
Q: 5.24 For the cash flows below, use an annual worth comparison to determine which alternative is best…
A: Calculating the Annual worth of each project. AW of Project X =…
Q: 04. For the cash flows shown, find the future worth in year 7 at i = 3% per year? Please show your…
A: For, Year 2=700Year 3=1.03 x 650=669.5Year 4=(1.03)2 x 600=636.54Year 5=(1.03)3 x 550=600.99Year…
Q: A firm is considering which of twodevices to install to reduce costs. Both devices have useful lives…
A: Annual Worth is described as the identical standardized yearly benefit over a project’s life cycle…
Q: What is the Future worth for the following cash flow diagram? If the MARR is 10%, is this a good…
A: here we calculate the future worth of the given cashflow and select the correct option so the…
Q: Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life.…
A: First cost =$28 000 $5000 per year over its 10-year life. salvage value of $3000 at the end of 10…
Q: 4. X generator has a first cost of $20,000, AOC of $15,000, and S of $5000 after 4 years. Y…
A: Disclaimer- “Since you have asked multiple question, we will solve the first question for you as per…
Q: An investment proposal calls for $321,164.4 payment now and a second $298,165.23 7 years from now.…
A: Investment Proposal = 321,164.4 2nd Payment = 298,165.23 Interest rate
Q: A pump is needed for 10 years at a remote location. The pump can be driven by an electric motor if a…
A: As the life of the Gasoline is only 5 years it has to be repeated once. The PW of Gasoline =…
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A: GIVEN First Cost $300,000 $615,000 Maintenace & Operating cost…
Q: A company must invest in one of two alternatives. Alternative A Alternative B Initial Cost $712,623…
A:
Q: A plant is interested in acquiring a machine to produce a new product. Three altematives, A. B. and…
A: A B C Investment Cost 20800 34000 16000 Annual cash flows 10000 9200 10900 Salvage value…
Q: 9. Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year…
A: Project cost = $28000 Per year returns = $5000 Time = 10 years Interest rate = 15% Salvage value =…
Q: , if PW= $ 1581.48, compounded annually. Explain the results. End of Year 2| 3 4 Cash Flow, $1000…
A:
Q: Present Worth Method. Show your complete solution and box your answers. A company that manufactures…
A: Present worth is the current value of money that we are expecting in the future.
Q: A salesman earns 1000P on the 1st month, 1500P on the 2nd month, 2000P on the 3rd month and so on.…
A: Monthly Payment = 1000 and increasing by 500 every month n = 10 r = 12%
Q: he first cost of a certain equipment is P350.000 and a salvage value of P48,000 at the end of its…
A: A capitalized cost is a cost that is incurred from the purchase of a fixed asset that is expected to…
Q: Choose the most economical alternative in disposing non-hazardous chemical sludge using (a) PW…
A: i=12%
Q: Compare the machines below based on their annual worth at a 14% interest rate yearly. (Include cash…
A: Formula used: Annual Worth = PW/PVAF PVAF = [(1−(1+i)^−n)/i]
Q: 4. X generator has a first cost of $20,000, AOC of $15,000, and S of $5000 after 4 years. Y…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If you…
Q: Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life.…
A: If the Annual Worth is positive, then it is profitable to undertake the project, else not
Q: Q2: A warehouse can be built with an initial cost of $60000, which may last for 20 years with annual…
A: A Rate of Return (ROR) is the gain or loss of an investment over a certain period of time Here we…
Q: You deposit $5000 into an account that will grow to $14,930 in 6 years. Your rate of return on this…
A: Answer: Given, Deposit value = $5000 Final value = $14,930 Years = 6 Formula to be used: Final…
Calculate future worth with MARR 20%
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- Your company is determing whether or not it should invest in a new pallet wrapping station. The station would cost $6,500 and your company's MARR is 13%. You estimate the purchasing a pallet wrapper would save you $2,000 in labor annually, and at the end of 3 years you would realize a salvage value of $400. How would you calculate the present worth of this investment in Excel?Compute for the Annual Worth of MEA1 and explain. Compute using the Annual Worth formula and WITHOUT using Excel sheets. Thank you. MARR = 12%Mustang Auto Parts, Inc. is considering one oftwo forklift trucks for its assembly plant.• Truck A costs $15,000 and requires $3,000 annually in operating expenses. It will have a $5,000salvage value at the end of its three-year servicelife.• Truck B costs $20,000, but requires only $2,000annually in operating expenses; its service life isfour years, at which time its expected salvage valuewill be $8,000.The firm’s MARR is 12%. Assuming that the trucksare needed for 12 years and that no significantchanges are expected in the future price and functional capacity of each truck, select the most economical truck on the basis of AE analysis.
- Abbott wants to increase their marketing for Pedialyte leading up to St. Patrick's Day this year. They launch a Superbowl ad on 2/13/2022, costing them $5,000,000, and they launch a secondary campaign in early March (3/6) costing $800,000. They expect to see sales starting at $500,000 on 2/20, increasing by 20% every week for 6 weeks. Assuming a MARR of 12%, what is the present value of this project at the start of the campaign if they stop attributing sales to this on 4/3/2022?O. $602,449O. $597437O. $563,446O. $321,998Abbott wants to increase their marketing for Pedialyte leading up to St. Patrick's Day this year. They launch a Superbowl ad on 2/13/2022, costing them $5,000,000, and they launch a secondary campaign in early March (3/6) costing $800,000. They expect to see sales starting at $500,000 on 2/20, increasing by 20% every week for 6 weeks. Assuming a MARR of 12%, what is the present value of this project at the start of the campaign if they stop attributing sales to this on 4/3/2022? Group of answer choices $563,446 $602,449 $321,998 $597,437Activity 3 mid1. Consider Option A and Option BFill-up the table Below for the Future Value and the Present value?Assume an initial Value of 15,000 pesos. a) Option A (FV) 5YRS 10YRS 25YRS 30YRS 1% 5% 10% 20% b) Option B (PV) 5YRS 10YRS 25YRS 30YRS 1% 5% 10% 20%
- 1. (Short Answer) A new office building is expected to produce the initial net operating income (NOI) of $10 at time 1. The NOI is expected to grow 5% per year, and the investor expects an annual IRR of 15%. If the construction cost is $90, what is the land value at time 0?is considering a new 3- year - long project that would involve using specialized scanning software to scansubmitted screenshots in low resolution and convert them into high resolution text documents that there's currently astrong market for. Course Hero requires a 17 percent annual return on this uncertain project, high enough tocompensate for the underlying uncertainty of future cash inflows. A decision to accept the project would be followed byan immediate investment of $5.8 million into purchasing the software. At the end of the project Course Hero is hoping tobe able to find a different company in similar line of business that would be willing to pay $449, 400 for the software andits future ownership.other similar software, its value will be dropping over its economic life according to the 3- yearMACRS depreciation schedule. (See this MACRS Table) Course Hero pays taxes on its annual income and other taxablecash flows according to a 32 % tax rate. Course Hero estimates $5, 136, 000…Determine the net present worth (NPW) of the cash flows given in table below for an investment opportunity being presented to a company. MARR =12% Year 0 1-10 11-15 16-25 26-30 Cash Flow -$100K 10K 20K -5K 30K Group of answer choices $90,030 $80,914 $72,916 $112,200
- Which equation below gives at10% interest the total EUAC of an asset with an initial cost of $30,000, an estimated salvage value of $12,000 after its 7 -year service lile a, O&M costs of $25,000 per year? EUAC=($30,000−12,000)(A/P,10%,7)+($12,000)(A/F,1006,7)+$25,000 EUAC=($30,000−12,000)(A/P,10%,7)+($12,000)(0.10)+$25,000(A/F,10%,7) EUAC=($30,000−12,000)(A/R,10%,7)+($12,000)(0.10)+$25,000 EUAC=($30,000−12,000)(A/P,10%,7)+$25,000A man is considering putting up his own enterprise, where an investment of 800,000Php will be required and will take 15 years to recoup . He estimates his annual sales at 800,000Php along with the following operating costs. Materials ............................. 160,000Php/ yearLabor ............................. 280,000Php/ yearOverhead ............................. (40,000 + 10% of sales) Php/ yearSelling Expense............................. 60,000Php/ yearThe man will give up his regular job paying 216,000 Php per year and devote all his time to the operation of his business, this will result in decreasing his labor cost by 40,000Php per year, material cost by 28,000Php per year and overhead cost by 32,000 Php per year. If the man expects to earn at least 20% of his capital, should he invest? solve in the present worth cost methodAn electric cooperative is considering the use of a conicrete electric pole in the expansion of its power distribution lines A concrete pole costs 18.0o0 each and will last 20 years The company is presently using creosoted wooden poles which cost 12.000 per pole and will last 10 years. If money is worth 12 percent, which pole shoulcd be used? Assurne annual taxes amount to1 percerit of first cost and zero salvage value in both cases a) Use rate of return method b) if the maximum retum on investment is 20% what is the justifiable arnount that can be paid for concrete electric pole?