ompany universal testing machine for P1.22M, with estimates that this would result in quality control cost savings of P 188 000 per year for 12 years. Determine the IRR realized on this investment if the equipment has no salvage value at the end of 12 years.
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- Machine X has an initial cost of $14,000. It is expected to last 10 years, to cost $255 per year to maintain and to have a salvage value of $6,000 at the end of its useful life. The equivalent uniform annual cost of the machine at 7% interest is approximately _____________. A. $1385 B. $1763 C. $1547 D. $1814An injection-molding machine has a first cost of $1,050,000 and a salvage value of $225,000 in any year. The maintenance and operating cost is $235,000 with an annual gradient of $75,000. The MARR is 10%. What is the most economic life? 13-1 P Maint A Maint G (A/G, 10%, n) Salvage PV of S n EUAC-P EUAC-M EUAC-S EUAC Minimum? 1050000 235000 75000 225000 1 1050000 235000 75000 225000 2 1050000 235000 75000 225000 3 1050000 235000 75000 225000 4 1050000 235000 75000 225000 5 1050000 235000 75000 225000 6 1050000 235000 75000 225000 7 1050000 235000 75000 225000 8 Can you please teach how to calculate these number I don't know how to solve in excel I…A Machine costs ₱80,000 and an estimated life of 10 years with a salvage value of ₱5,000. What is the book value after 5 years using Double Declining Balance Method. Answer: BV5=₱26,214.40Show Solution
- uppose that you purchased a HVAC system five years ago for $75, 000. The O&Mcosts are $15, 000 this year and are expected to increase by $1, 000 each year for the next five yearsthen remain the same for the following years.The current salvage value of the system is $15, 000; salvage value after one year is estimated tobe $12, 000; after two years, $11, 000; after three years, $10, 000; after four years, $9, 000; and so on.A new industrial HVAC system is available for purchase at a price of $95, 000, including instal-lation. The market value of the new system will decrease at a rate of 15% each year. The O&Mcosts are expected to be $1, 000 in the first year, and will increase at a rate of 20% each year. Themaximum service life of the new system is 10 years. Assume that your company uses an interestrate of 10% for all project evaluations.(a) Find the remaining economic life of the currently owned asset.(b) What is the economic service life of the new system?(c) Use the…During a a company history of cash flow: Y1, Income $6850: costs $19333, Y2 $6404; costs $14498 Y3 income $17620; costs $2126 with a hurdle rate of 0.15, what is the NPV at year 3? Please solve clearly ASAP.urgent A firm can purchase a centrifugal separator (5-year MACRS property) for $17,000. The estimated salvage value is $4,000 after a useful life of six years. Operating and maintenance (O&M) costs for the first year are expected to be$1,700. These O&M costs are projected to increase by $500 per year each year thereafter. The income tax rate is 25% and the MARR is 13% after taxes. What must the uniform annual benefits be for the purchase of the centrifugal separator to be economical on an after-tax basis? The uniform annual benefits should be........... (Round to the nearest dollar.)
- A Machine costs ₱80,000 and an estimated life of 10 years with a salvage value of ₱5,000. What is the book value after 5 years using Sinking Fund Method if i=9% Answer: BV5=₱50,456.44Show SolutionA new machine costs $899,090 and falls in a 29.50% CCA class. The machine will have zero value after 5 years of use but will save $417,680 annually in operating costs before taxes in those five years. Assume a tax rate of 34.17%. Using a required return of 15.11%, what is the equivalent annual cost (EAC) of the machine purchase, considering the annual cash flow, initial purchase, and CCA tax shield? Options $59,682 $61,252 $62,823 $64,393 $65,9643. The Ajax Corporation has an overhead crane thathas an estimated remaining life of 10 years. The cranecan be sold now for $8,000. If the crane is kept in service,it must be overhauled immediately at a cost of $5,000.Operating and maintenance costs will be $3,000 peryear after the crane is overhauled. The overhauled cranewill have zero MV at the end of the 8-year study period.A new crane will cost $20,000, will last for 8 years,and will have a $4,000 MV at that time. Operating andmaintenance costs are $1,000 per year for the new crane.The company uses a before-tax interest rate of 10% peryear in evaluating investment alternatives. Should thecompany replace the old crane?
- Explain the annual-equivalent worth (AE) criterion?In the choice of mechanical equipment you are required to submit your recommendation as to which of the two steam shovels for earth excavation is better to buy. The basis is 20 year service and interest at 7%. Taxes and insurance are the same in each case: 5% & 1% respectively. Use Annual Cost to determine 50-ton shovel. 50-ton shovel 70 ton shovel First Cost P30k P38k Life 20 years 20 years Salvage value P2k P3k Annual Operation P15k P17k Annual Upkeep P1.5k P2k Annual Output 150k yards3 200k yards3 a. P21,803.002 b. P12,083.002 c. P21,083.002 d. P21,380.002XYZ company has been presented with an opportunity to invest in a project for 10 years. If management expects to make 10% on its investments before taxes, would you recommend this project? Use exact IRR The facts on the project are presented below Investment Required = $60,000,000 Annual Gross Income = $14,000,000 Annual Operating Costs = S 5,500,000 Salvage value after 10 years = 0 Find IRR = ?