Giving the following information on machine A and machine B and assuming an 8.6% MARR, which mutually exclusive alternative should be selected?

Q: At 20% cpd. monthly., find the capitalized cost of a bridge whose cost is P673777 with a life of 22…

A: Capitalized cost = Initial Cost + (Rehabilitation Cost-Salvage Value)/((1+i)^n-1)

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: In a replacement analysis problem, the following information is available Initial cost : 12.000 YTL…

A: Replacement analysis problem: The decision challenges regarding the replacement of existing old or…

Q: A new municipal refuse-collection truck can be purchased for $84,000. Its expected useful life is…

A: (Q) A new municipal refuse-collection truck can be purchased for $84,000. Its expected useful life…

Q: A used cleaning vehicle will cost $85,000 and have a $20,000 salvage value at the end of its five…

A: There are two alternatives available   First the used system and another is the new system Present…

Q: You plan to purchase new machines that will allow your company to manufacture at a much quicker…

A: Cost = 15,000 Revenue = 2000 MARR = 4%

Q: Estimates for a process update are as follows: initial cost of $ 40,000, annual revenue of $ 10,000,…

A: Initial Cost = $40,000 Annual Revenue = $10,000 Annual Cost = $5,000 Market Value: Falls by $20,000…

Q: A company is planning to install a new automated plastic- molding press. Two different presses are…

A: Given Data,  Producing = 120,000 units per year.  Non defective units are sold for $0.345/unit.…

Q: Calculate the capitalized cost of a project th- has an initial cost of P3,000,000 and an addition…

A: Given informations: Initial cost = P3,000,000 Additional cost at every 10 years = 1,000,000…

Q: For each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear…

A: Defender   Challenger   Current MV $38,000 Purchase Price $51,000 Required Upgrade…

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: You purchased a building five years ago for $100,000. Its annual maintenance expense has been $5,000…

A: Option B is correct

Q: in year two. Project B costs $120,000 and is expected to generate $64,000 in year one, $67,000 in…

A: A rate of return (RoR) is the net gain or loss of an investment over a specified time period,…

Q: Two alternative structures are being considered for a specific service. Compare the present worth of…

A: Present value or present worth is the current value of future cash flow streams using a given…

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) P[N2 = 4] b) P [N2 < 1] ol

A: The correct answer is; c) P[5&lt;=N2&lt;8]

Q: The project's economic study predicts annual investments of R$300,000,000.00 during three years of…

A: The difference between the current value of cash inflows and withdrawals over a period of time is…

Q: A plant erected to manufacture socks has a first cost of 10,000,000 with an estimated salvage value…

A: The periodic contribution can be calculated with the following formula   P = Depreciating amount x…

Q: Assume no residual market value for the plant. (X1= $100 and X2=8%) a. What is the simple payback…

A: The payback period is a simple calculation of time for the initial investment to return. · It…

Q: The International Parcel Service has installed a new radio frequency identification system to help…

A:

Q: Calculate the capitalized cost of an equipment maintained at a rate of 6% every year for P10,000,…

A: The present value of an item's annual sales over an indefinite period is its capitalization cost.

Q: Two mutually exclusive alternatives are being considered for the environmental protection equipment…

A: The analysis of the equivalent worth of all the disbursements and receipts that are being estimated…

Q: For FW Method, if FW (i = MARR) = −30, then the project is economically _____________. justified…

A: In the financial and economy analysis, when talking about future worth, it is the analysis of the…

Q: . A project requires an initial investment of BD 75,000, has a salvage value of BD 15,000 after 4…

A: The concept that depicts a decline in value of an asset due to obsolescence, wear and tear or usage…

Q: The capitalized cost method is a present analysis in which the economic life of an asset or venture…

A: Capitalize cost is the cost that identified over the period time of the production through…

Q: The independent projects must have positive and negative cash flows to obtain a PW value that can…

A: The independent projects must have positive and negative cash flows to obtain a pw value that can…

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: If a company must choose between two projects, it should proceed with the one that generates a…

A: In capital budgeting, IRR is a tool that is used to measure the profitability of an investment.…

Q: The Kasibu Cooperative has invested a 145,000 new mechanical grading/sorter system which is…

A: Given that, The Kasibu Cooperative has invested a 145,000 Revenue increase by 14,000 Number of…

Q: City of Manila contemplates to increase the capacity of its existing water transmission line. Two…

A: In simple Present value is that value in present of some amount of money in the future. For…

Q: What is the capitalized cost of a structure that requires an initial investment of P1,500,000.00 and…

A: The application of economic ideas to the evaluation of engineering design and the selection of…

Q: Determine the capitalized cost of a research laboratory which requires P5,000,000 for original…

A: Capitalized cost is the cost or expenses added on a fixed assets in a company and this cost is not…

Q: The company uses a 10% discount rate and the total-cost approach to capital budgeting analysis. The…

A: Capital budgeting entails selecting projects that increase a company's worth. The capital budgeting…

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: Question 8  Canada's Wonderland has decided to carry out an analysis to determine when one of its…

A: First Cost = 715000  Study period = 5 years  MARR = 10%

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: The town council of Cato Springs is considering two alternative investments to upgrade and expand…

A: Given,  Two Alternatives : A and B to upgrade and expand the spring fed recreational area Time…

Q: Required information Three alternatives are being evaluated based on 7 different attributes, all of…

A: Attributes are the varied factors that are a part of higher cognitive process when chief needs to…

Q: Consider palletizer at a bottling plant that has a first cost of $129,745, has operating and…

A: Here we calculate the future worth of the project by using the given information , so the…

Q: A company is considering constructing a plant to manufacture a proposed new product. The land costs…

A: Given that Land cost=P300000 Building Cost =P600000 Equipment Cost= P250,000  Additional working…

Q: The Consolidated Oil Company must install antipollution equipment in a new refinery to meet federal…

A: Given the 4 alternatives , first we will use PW method as shown : Alternative D1 PW 10%…

Q: A small feed mill company is evaluating two alternatives: the purchase of an automatic feed machine…

A: Given: Auto feed machine: Initial cost=Php 23000 Salvage value=Php 4000 Life=10 years Operation of…

Q: Determine the capitalized cost of a research laboratory which requires P5,000,000 for original…

A: The calculation of present value of operating expenses has been made as follows: Present value of…

Q: Problem 4: How long would it take to recover an investment of $250,000 in enhanced CNC controls that…

A: Answer a) Following information is given: Initial investment (P) = $250,000   Annual income =…

Q: company CEO is currentl

A: *Answer:  Let us find the PW of all three machines for their respective lives - Machine 1 PW =…

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…

Q: Rincon, LLC is considering a project that will require an initial investment of $750,000 with…

A: a. The initial investment (IN) is $750,000. Net income (NY) is $135,000 per year. Time period (n) is…