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- 3. GuRL Corp. is considering selling its old popcorn machine and replacing it with a newer one. The old machine has a book value of P5,000, and its remaining useful life is five years. Annual costs are P4,000. A high school is willing to buy it for P2,000. New equipment would cost P18,000 with annual operating costs of P1,500. The new machine has an estimated useful life of five years. Should the machine be replaced? Prepare a differential analysis report to support your answer.Joe needs a new HVAC system for his home. He is comparing these three models. One Temp Happier Home Super D-Luxe 1st Cost $7000 $11,000 $20,000 Annual Energy $1500 $1100 $2000 Useful Life 7 years 10 years 15 years Salvage Value $500+50*5 $1000+40*5 $2000+60*5 Martha’s family plans to live in this house indefinitely. With a 8% interest rate, based on cost, which HVAC system would you recommend? Justify your answer.7 years ago, you bought an empty lot for $410893. Your plans have changed so you are thinking about selling it. You received an offer to purchase the lot for $613821. If you sell it at this price, what is the implied return? Answer:
- give me the right answer only ASAP Suppose we are thinking about replacing an old computer with a new one. The old one cost us $1.4 million; the new one will cost $1.7 million. The new machine will be depreciated straight-line to zero over its five-year life. It will probably be worth about $325,000 after five years. The old computer is being depreciated at a rate of $281,000 per year. It will be completely written off in three years. If we don’t replace it now, we will have to replace it in two years. We can sell it now for $450,000; in two years, it will probably be worth $130,000. The new machine will save us $315,000 per year in operating costs. The tax rate is 22 percent, and the discount rate is 12 percent. a-1. Calculate the EAC for the old and the new computer. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) a-2. What is the NPV of the decision to…H5. Builtrite is considering purchasing a new machine that would cost $60,000 and the machine would be depreciated (straight line) down to $0 over its five-year life. At the end of five years, it is believed that the machine could be sold for $15,000. The current machine being used was purchased 2 years ago at a cost of $40,000 and it is being depreciated down to zero over its 5-year life. The current machine's salvage value now is $18,000. Also, a higher level of inventory would be needed in the amount of $4000 for the new machine. The new machine would increase EBDT by $48,000 annually. Builtrite's marginal tax rate is 34%. What is the Initial Investment associated with the purchase of this machine? O $43,960 O $53,360 O $48,040 • $50,640Can i get help with this question please 4a1) Peter is considering the purchase of one of two machines used in his industrial plant. Machine PP has a life of two years, costs $52 initially, and then $60 per year in maintenance costs. Machine QQ has a life of three years, costs $82 initially, and requires $50 in annual maintenance costs. Either machine must be replaced at the end of its life. Which is the better machine for the firm? Explain. The discount rate is 12% and the tax rate is zero.
- Economics Margaret has a project with a £ 24,000 first cost that returns £ 4,900 per year over its 10-year life. It has salvage value of £ 3,200 at the end of 10 years. If the MARR is 6 %, (Use 5 significant figures for your calculations, and round your answers to the nearest dollar. Indicate losses as a negative value.) (a) What is the present worth of this project? (b) What is the annual worth of this project? (c) What is the future worth of this project after 10 years?Your friend Harold is trying to decide whether to buy or lease his next vehicle. He has gathered information about each option but is not sure how to compare the alternatives. Purchasing a new vehicle will cost $27,500, and Harold expects to spend about $600 per year in maintenance costs. He would keep the vehicle for five years and estimates that the salvage value will be $10,900. Alternatively, Harold could lease the same vehicle for five years at a cost of $3,575 per year, including maintenance. Assume a discount rate of 12 percent. Required: Calculate the net present value of Harold’s options. (Future Value of $1,Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Advise Harold about which option he should choose.You purchased a house for $785000 cash 5 years ago. You can sell it today for $1050000. What rate of return did you earn on this investment? Round your answer to the nearest tenth of a percent. Group of answer choices a. none of the choices b. 133.8% c. 6.8% d. 33.8%
- A company is considering replacing a machine (defender) that was boughtsix years ago for $50,000 and has now malfunctioned. The machine can be repaired toextend its life by Öve more years. If repaired, the machine will require an operating costof $10,000 per year. If it is replaced, the new machine (challenger) will cost $44,000, willlast for six years, and will have operating expenses of $5,000 per year. The challengerwill have zero salvage value at the end of its six year life. The malfunctioned defendercan be sold at a current market value of $15,000. If MARR is 12% per year, what isthe maximum amount that the company should spend to repair the existing machineinstead of switching to the challenger? Use the outsider viewpoint method. (Note: Allvalues are before taxes, not tax calculations are necessary). please dont use excellThe Valentine Company has decided to buy a machine costing $20,000. Estimated cash savings from using the new machine amount to $5,000 per year. The machine will have no salvage value at the end of its useful life of six years. The machine's internal rate of return is closest to: (Ignore income taxes.)a.11%b.12%c.13%d.14%Suppose you plan on spending $100/ac on restoring a forest on bare land you plan to buy. The project is projected to yield a harvest worth $2500/ac in 30 years. After which you sell the land for $400/ac. If you want to earn at least 6% rate of return, what is your willingness to pay for the land? Assume no other costs and revenues and that all values are in real terms. Show your work solving the problems a.) $490.28 b.) $265.63 C.) $636.27 d.) $404.92 e.) none of the above