Q) The maintenance costs associated with a machine are $2000 per year for the first ten years and $1000 per year thereafter. The machine has an infinite life. If interest is 10% per year, what is the present worth of the annual disbursements?

Q: The cost of the machine will be?

A: Given that: Useful life of machine = 4 years Payback period = 2.855 years Annual Cash flow = $80000…

Q: A snow cone machine at an ice cream shop costs $15,000. The machine is expected to generate profits…

A: Given information: Initial cost of machine is $15,000, Cash flows for 10 years is $2,500

Q: A machine costing $25,000 to buy and $3,000 per year to operate will savemainly labor expenses in…

A: To determine the annual savings required to get return on investment of 12%. We use the PMT function…

Q: I have purchased a machine worth P1,715,787.00. And it needs maintenance at the end of every 6…

A: Time value of money: The time value of money is the idea that the value of money received today will…

Q: What is the capitalized cost of a calendering machine that costs ₱1231,000 upon purchase, requires…

A: Initial cost (X) = P 1231000 Annual cost (A) = P 412000 Replacement cost (R) = P 89000 every 5 years…

Q: I have purchased a machine worth P1,599,270.00. And it needs maintenance at the end of every 6…

A: Present value of annuity can be calculated from the present value factor and given six month cost.

Q: value aft

A: Service Output Method also known as Working Hours Method. The formula : Depreciation per hour as, =…

Q: ve purchased a machine worth P1,564,748.00. And it needs maintenance at the end of every 6 months…

A: Present value of the money can be found by the interest rate and period given by using the formula.

Q: A machine cost ₱100,000 with salvage value of ₱10,000 after 10 years. If the annual maintenance and…

A: A machine will be profitable if Net Present value (NPV) of machine is positive. NPV = Present value…

Q: The initial cost of a van is $22,800; its salvage value after 5 years will be $8500. Maintenance is…

A: The equivalent uniform annual cost is the annual cost of maintaining and operating assets calculated…

Q: 1) A manufacturing plant manager has purchased a new bologna slicing machine for $24,500. The new…

A: Present worth (PW) means the actual amount is adjusted with the interest rate so as to get the…

Q: “T.Z.Y. Life Fitness is considering installing a new process machine for the firm's manufacturing…

A: Capital budgeting techniques are the approaches to evaluate various investment proposals and…

Q: Shonda & Shonda is a company that does land surveys and engineering consulting. They have an…

A: Formula: Contribution margin = Sales price - variable cost.

Q: An industrial machine costing $10,000 will produce net cash savings of $4,000per year. The machine…

A: IRR is the discount rate where present value of the cashflow is equal to initial investment. AT IRR…

Q: Compute the present equivalent cost of a machine tool that costs $10,000 initially plus $500 for…

A: Present value is the today's value of the future money computed at a given specified discounted…

Q: DO IT IN EXCEL, AND SHOW THE FORMULAS If the company purchases the machine, its cost of $276,000…

A: Credit purchase is a system through which the purchaser can buy the asset without paying the value…

Q: An assembly operation at a software company now requires $100,000 per year in labor costs. A robot…

A: Capitalized cost can be defined as the present value of all future cashflows of a capital investment…

Q: company wants to buy a machine with a cash sale price of 750,000 TL. The machine is economical life…

A: Sales price =750000 Scrap value =100000 Annual depreciation =750000-10000/4 Annual depreciation…

Q: Consider a machine which costs $115,000 now and which has a useful life of seven years. This machine…

A: The following the information in the question: 1. Machine which costs $115,000 2. Useful life of…

Q: I have purchased a machine worth P1.862.585.00. And it needs maintenance at the end of every 6…

A: Purchase Price = 1,862,585 Maintenance Cost = 2% of Purchase Price = 2% * 1.862,585 = 37,251.70…

Q: A young mechanical engineer is considering establishing his own small comp nvestment of P400,000…

A: concept  IF the rate of return is greater than the expected return then the project is justified IF…

Q: You are considering a manufacturing equipment that has a cost of $100,000. The equipment is expected…

A: Equivalent Savings per hour refers to amount of saving adjusted with time value factor is saved by…

Q: A computer platform requires $160,000 initial investment and additional $80,000 after 10 years. The…

A: A project or asset is to be capitalized at the present value. To calculate the capitalized value of…

Q: 2. Lorna Products, Inc., can purchase a new copier that will save P5,000 per year in copying costs.…

A: Given information: The maximum purchase price that Lorna products would be wiling to pay is the…

Q: A machine, costing $30,000 to buy and $2.500 per year to operate. will save mainly labor expenses in…

A: a) The point at which NPV is zero gives annual savings. Computation:

Q: An annual maintenance cost of a machine is 500 this year. It is expected to increase 50 pesos per…

A: The time value of money is the idea that the value of money received today will be more worthy than…

Q: "T.Z.Y. Life Fitness is considering installing a new process machine for the firm's manufacturing…

A: Internal Rate of Return (IRR) is the rate where net present value of the project is zero. It is the…

Q: A company purchased a small equipment for $70000. Annual maintenance costs are expected to be $1850,…

A: Net present value (NPV) is the value of all the cash flow of the investment (positive and negative)…

Q: DO IT IN EXCEL, AND SHOW THE FORMULAS If the company purchases the machine, its cost of $276,000…

A: Principal is a value which is borrowed from external sources. It can be done in the form of cash or…

Q: You are promised an 8-year streams of income from buying a new technology at the initial amount of P…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A certain engine lathe can be purchased for $150,000 and depreciated over three years to a zero…

A: Actual Dollar & Constant Dollar are two values that are used to perform project analysis. In…

Q: I have purchased a machine worth P1,877,187.00. And it needs maintenance at the end of every 6…

A: First we need to calculate present value of all maintenances by using this formula PV =pmt1-1(1+i)ni…

Q: A machine with a purchase price of R1 200 000 is estimated to eliminate manual operations by R400…

A:

Q: A manufacturing plant manager has purchased a new bologna slicing machine for $24,500. The new…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: 6. A large automobile manufacturer is considering the installation of a high-tech material handling…

A: Net annual benefit = Annual benefit from the handling system – Annual cost from the handling system…

Q: Annual maintenance costs for a particular section of highway pavement are $2500. The placement of a…

A: Annual maintenance costs= $2500 Reduction in the annual maintenance cost for the first 3 years= $500…

Q: rest rate earned on money

A: We need to compute the future price of machine after 8 years and then shall compute the amount to be…

Q: A machine costs $25,000; it is expected to generate annual cash revenues of $8,000 and annual cash…

A: Present value is calculated by using the rate of return required by the investor. It is one of the…

Q: A machine has an investment cost of $50000. It costs 20000 for shipping, insurance and site…

A: Interest Rate = 15% per year Costs: Year Cost Reference 0 -70000 Investment Cost + Shipping,…

Q: Assume that a money manager is considering the buy of a $35,000 machine and that he appraises that…

A: The question is to take a decision to buy a machine based on expected interest rate earing and…

Q: A certain company has the following maintenance cost for all of its machine. On the first 5 years,…

A: The amount the company will pay today can be found using the present value concept.  By discounting…

Q: 3. A piece of machinery has an initial cost of P40,000 and results in an increase in annual…

A: To find the years the machinery will take to pay for itself if compounding is considered, we need to…

Q: I have purchased a machine worth P1,897,363.00. And it needs maintenance at the end of every 6…

A: Whenever repeated payments are made at the end of a specific period it is called an annuity. This…

Q: A machine has a first cost of $50,000. Its market value declines by 25% annually. The operating and…

A: Minimum acceptable rate is the minimum profit of an investor anticipate to create from an…

Q: A machine costs £16,000 and has a 5-year life. The required rate of return is 10%. By how much can…

A: Depreciation= 30%* Opening value

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.