Rerform an EAC analysis and evaluate what decision to make regarding 2 challengers and 1 defender. Elaborate: a) Graphs b) EAC analysis c) Conclude the exercise and make a decision regarding the results Machine N1 (#1 challenger) useful life = 8 years Initial Cost $15,000 MARR 18% Year Operating costs Market value
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Rerform an EAC analysis and evaluate what decision to make regarding 2 challengers and 1 defender. Elaborate:
a) Graphs
b) EAC analysis
c) Conclude the exercise and make a decision regarding the results
Machine N1 (#1 challenger) | ||||
useful life = 8 years | ||||
Initial Cost $15,000 | MARR 18% | |||
Year | Operating costs | Market value | EAC | |
1 | $ 355.00 | $ 8,000.00 | ||
2 | $ 500.00 | $ 7,000.00 | ||
3 | $ 788.00 | $ 6,000.00 | ||
4 | $ 1,000.00 | $ 5,000.00 | ||
5 | $ 1,355.00 | $ 4,000.00 | ||
6 | $ 1,688.00 | $ 3,000.00 | ||
7 | $ 2,012.00 | $ 1,000.00 | ||
8 | $ 2,345.00 | $ 0.00 |
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- The following are data from a production, calculate; The Break-even point in terms of sales value and in . The production demand is at 20,000 units. What is the cw1ent production profit? If the management decides to lower dow11its selling price by 50% given the same demand, will this be a sound decision? Justify. Monthly Fixed Factory Overhead Cost = P600,000 Monthly Fixed Selling Overhead Cost = Pl20,000 Va1iable Manufacturing Cost per Unit = P220 Va1iable Selling Cost per Unit = P30 Variable Distribution Cost per Units = P50 Selling Price per limit = P400Canuck Oil Corporation is a Canadian crude oil producer. Today is July 15. Canuck’s estimated oil production level in three months’ time will be 100,000 barrels. The current spot price for crude oil is US$90.29 per barrel. Between January 15 and now, crude oil prices have fluctuated from a high of $110.82 to a low of $90.56. Due to the unstable nature of crude oil prices, Canuck Oil’s financial manager, Mr. Petro Stark would like to hedge the crude price risk using crude oil futures contracts. Petro found the following information on futures contracts expiring in September, October, and November: Delivery month Last Change Prior settlement Open High Low Volume September 90.79 –0.58 91.37 91.24 91.44 89.76 9067 October 92.18 –0.48 92.66 92.89 95.22 89.30 5229 November 90.13 –0.35 90.48 90.22 90.55 89.08 1685 Contract size: 1,000 barrels Contract currency: US dollar September expiry: September 16 October…I want you to provide me the Cash Flow diagram of the problem. Only cash flow diagram, the solution is already there. Thanks in advance! The annual estimated cash flow is $140,000. The salvage value will be 12% of the initial price after 5 years. The discount rate (r) is 18% Let us assume the initial price of the doughnut machine be X. PV of cash inflows=PV of cash outflows$140,000×PVAF4,18%+.12X×PVF5,18%=X$140,000×2.69006180465+.12X×0.43710921621=X$376,608.652651=X-0.05245310594$376,608.652651=0.94754689406XX=$397,456.479475 The maximum purchase price of the doughnut machine is $397,456.48.
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