The annual worth calculated for the first life cycle with i = 15% was obtained as $-731. What will be the annual worth ?calculated for the second life cycle %3D
Q: Find the capitalized cost of a bridge whose cost is P300M and life is 2o years at 6% interest, if…
A: A capitalized cost is a cost added to the expense premise of a fixed cost on an organization's…
Q: O $80,000 ي A = yr 10,000 اگ او A- د 30,000 د یا د
A: Given Cash flow Initial investment=80000 Annual revenue for 15 years=10000 per year From 16 years…
Q: A CNC mill was purchased 4 years ago for $60,000. Even though it is still a productive machine, a…
A:
Q: A construction firm is considering establishingan engineering computing center. The center will…
A: Given, cost of 3 engineering workstations= $45000 each. Service life =5 years Expected salvage…
Q: A new lock is being considered for a dam, and it will cost $650,000 to design and build. Every 10…
A: here we calculate the given by following method as follow;
Q: It costs P1000.00 for hand tools and P1.50 labor per unit to manufacture a product. Another…
A:
Q: Deere Construction just purchased a new track hoe attachment costing $12,500. The CFO, John, expects…
A: The purchase of new track = $12500 The useful life of track = 5 years Salvage value = $4000
Q: A chemical reactor, which will contain corrosive liquids, has been designed.The reactor may be made…
A: Given: The initial cost for a steel reactor is = P72,000 Years = 5 The cost for stainless steel is =…
Q: The initial cost of a pickup truck is $12,743 and will have a salvage value of $3,579 after five…
A: Find below the working:
Q: A chemical reactor, which will contain corrosive liquids, has been designed. The reactor may be made…
A:
Q: The mining company is considering purchasing a machine which costs $30000 and is expected to last 12…
A: The method through which analysis of cash flow is being done by discounting them to their current…
Q: An investment of $20,000 in new equipment will generate income of $7000 per year for 3 years, at…
A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…
Q: The purchasing price of the second-hand bulldozer is $150,000. It will have 8 years service life…
A: Purchase price of bulldozer = $150000 Life of bulldozer = 8 years Salvage value = $10000 First-year…
Q: Nico has a 20-year-old oil-fired hot air furnace in his house. He is considering replacing it with a…
A: Answers Net Investment Cost of new gas furnace $ 4,500 Add: Installation…
Q: An equipment costs 115,000 QAR and has an estimated salvage value of 10,000 QAR at the end of 5…
A: MACRS formula depreciation uses either a declining balance formula or a straight-line formula.…
Q: Hampton Industries had $46,000 in cash at year-end 2018 and $15,000 in cash at year-end 2019. The…
A: Cash flow refers to the quantity of cash or cash equivalents received or disbursed by the company in…
Q: An old machine cost P48,000.00 a year to maintain. What expenditures for a new machine is justified…
A: Given: Cost of old machine=P48000 For first 3 years=no maintenance For next 7 years=P12000 For a…
Q: Geothermal energy is a renewable, sustainable energy resource. Geothermal systems are available for…
A: Geothermal energy is renewable energy resource. For this Mr. Naz Metz wants to replace the current…
Q: Solar panels can be used to prewarm the water fed to a conventional home water heater. The solar…
A: The method of calculation of the rate of return of investment is known as the internal rate of…
Q: In replacement analysis, the "economic lifetime" of a capital equipment is A. the service life that…
A: The time value of money refers to the concept that cash received today has a higher value than cash…
Q: the capiladliz propert which requires P8,000,000.00 for original constructions; P150,000.00 at end…
A: A capitalized cost is an expense added to the cost basis of a fixed asset on a company's balance…
Q: QUESTION: To improve package tracking at a UPS transfer facility, conveyor equipment was upgraded…
A: Annual Worth is a widely used method to compare alternatives .
Q: A factory manager bought a rare machine for $10 million. of the machine The sales value at the end…
A: Economic life is the life of an asset till the time it can be used. Here, the machine is the asset.…
Q: QUESTION 1 A new production system for a factory is to be purchased and installed for $163,086. This…
A: Present value is the concept that states an amount of money today is worth more than that same…
Q: An investment of P270,270 is needed for a Korean Mart that will produce a uniform annual revenue.…
A: Given, Investment : P270,270Operating daily for 5 yearsSalvage Value : 10% of InvestmentOperation…
Q: An investment of $20.000 in new equipment will generate income of $7000 per year for 3 years, at…
A: Approximate IRR using trial-and-error method is computed using interpolation: IRR = RL + [NPVL /…
Q: Stritch operates a fleet of vans and is considering whether to replace the vehicles on a L or 2 year…
A: *Hi there , as you have posted multiple questions following our guidelines we can only solve one…
Q: A special purpose machine is to be acquired by paying a P15,000 initial cash payment plus a debt…
A:
Q: A plant erected to manufactured socks has a first cost of P10, 000,000 with an estimated Salvage…
A:
Q: If saving function is given as: S=-110 +0.7(Y), then MPC is O 0.7 0.4 None of these 0.3
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: What does the annual-equivalent worth (AE) criterion provide?
A: The investment expenditure is an important component of the aggregate demand in the economy. It is…
Q: Describe the Annual-Equivalent Worth Criterion?
A: The AE (annual equivalent worth) is the annual value of an asset of owning, operating, maintain over…
Q: Five machines were originally estimated to have useful life of twelve years. If sold now, each can…
A: Cost / benefits of the five machine analysis Machine Sold @P5, 500 = P5500 × 5…
Q: An in place machine has an equivalent annual worth of $-100000 for each year of its maximum…
A: Given, Annual worth of $-100000 Interest rate of 17.255609824% Time 3 years
Q: Who doesn't love food trucks? Imagine you are being offered to invest in a food truck as part of a…
A: Given information First cost=$100000 Salvage value=$5000 O& M cost =$5000 Overhaul cost=$20000…
Q: The Moller Skycar M400 is a flying car known as a personal air vehicle (PAV) that is expected to be…
A: * SOLUTION :-
Q: A wastewater treatment facility is planning to purchase a new sludge dryer equipment to replace its…
A: Rate of return for a project or the internal rate of return for a project, denoted as IRR, is…
Q: A machine was purchased with an amount of P375,000.00 and a modification cost of P100,000.0C after…
A: Capitalized Cost of a machine is calculated by computing the present value of all the cash outflows…
Q: TEI incorporated is considering the use of concrete electric pole in the expansion of its power…
A: The life of each option is different so either we can use the AW method or repeat method in PW
Q: A company is looking to install a new automated system to increase its revenues by $24,000 per year…
A: Given Information Present Value = $80,000Number of periods (n) = 5 yearsAnnual revenues =…
Q: IL will yleld an annual net income of P225000 for ars and will have a salvage value of P32000. The…
A: FV = the future worth of cash. PV = the current worth. I = the loan fee or other return that can be…
Q: An existing machine in a factory has an annual maintenance cost of P40,000. new and more efficient…
A: Given:- Maintenance cost=P40,000 Investment=P90,000 Salvage value=P30,000 Time=8 years Upkeep…
Q: Determine the future worth of the following series of cash flows, given i = 15%: CFO = -$10 000, CF1…
A: Year Cash Flow 0 -10,000 1 5000 2 5000 3 5000 4 5000 5 -2000 6 3000
Q: A 2-ton hydraulic press is needed to add to production. This equipment has an initial purchase and…
A: Annual profit includes all benefits/profits, for example, working benefits, production for own…
Q: If LRTC is 200+5q-2(q)(q)+(q)(q)(q) the MC is..
A: The marginal cost (MC) of production is the difference in total production costs that results from…
Q: A new production system for a factory is to be purchased and installed for $151.910. This system…
A: In economics and finance, present value, also known as present discounted value, is the value of an…
Q: Who doesn't love food trucks? Imagine you are being offered to invest in a food truck as part of a…
A: Given information First cost=$100000 Salvage value=$5000 O& M cost =$5000 Overhaul cost=$20000…
Solve
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Corrosive liquids are transported through pipes in a factory . Ordinary pipes will have an installedcost of P30,000 and their useful life is 3 years . Stainless steel pipes are higly resistant to the corrosive effectof the liquids and are being considered as an alternative . These pipes are estimated to have an installed costof P55,000 . Salvage value is zero in each case . If money is worth 8% and assuming replacement costs to be thesame as the original prices , what should be the useful life of the stainless steel pipes to have equal capitalizedcost as the ordinary pipes? A) 5.3 years C) 5.9 yearsB) 5.6 years D) 6.2 yearsWhat does the annual-equivalent worth (AE) criterion provide?A company is trying to consider buying an equipment with an initial cost of $80,000. The salvage value is expected to be $20,000 after 20 years. A fund is set up to replace it at the end of 20 years. What is the uniform annual deposit that should be made to the fund? Money is worth 10% per annum.
- Economics A commercial 3D printer is purchased for $310,000. The salvage value of the printer decreases by 45% each year that it is held. The cost to operate and maintain the machine the first year it is used is $12,000; these costs increase by $5,500 each year. What is the optimal replacement interval and minimum EUAC for the printer, assuming a MARR of 11% is used? ORI: years EUAC*: $An in place machine has an equivalent annual worth of $-100000 for each year of its maximum remaining useful life of two years. A suitable replacement is determined to have equivalent annual worth values of $-175000, $-125000, and $-150000 per year if kept for 1,2, or 3 years, respectively. When should the company replace the machine, if it uses a fixed 3-year planning horizon? Use an interest rate of 17.255609824% per year compounded semiannualy.To maintain its newly acquired equipment, the company needs P40,000 peryear for the first five years. And P60,000 per year for the next five years. Inaddition, an amount of P140,000 would also be needed at the end of the fifthand eight years. At 6%, what is the present worth of these costs?
- Five machines were originally estimated to have useful life of twelve years. If sold now, each can be sold for P5,500. The annual operating costs for each are one operator at P22.00 a day, 300 days a year; a yearly energy utilization is 6,000 kw-hr at P0.50 per kw-hr; upkeep including spare parts are estimated P700 a year. Taxes and insurance are 7% of first cost. The machine has the same capacity as the fivbe machines and is now available at an estimated first cost including installation of P80, 000. Sinking fund method is used at 15% in computation od depreciation. Will you recommend replacementif money is worth 20% to a company?Matchim's Paving is investing in a new wider paving machine that will cost $131000, which is expected to return $22500 per year of the next 12 years. At the end of the 12 years the paving machine is expected to have a salvage value of $20000. Assuming the cash flow is at the end of the year, what is the Pay Back Period, in years, for the project?You bought a new car which you intend to use as a public utility vehicle for P950,000. The expected life of the car is ten (10) years for its intended use. Your driver and you agreed that for the first five (5) years , your “boundary” is P1,500.00 per day and P1,000.00 per day for the rest of its economic life. You also expected a repair and maintenance costs of P30,000 every six (6) months from year one (1) to five (5) and P50,000 from year six (6) to ten (10). At the end of 10 years you can sell the car for P100,000. If your MARR on invested capital is 15% every (6) months, determine whether this is a good investment. show the cash flow diagram?
- You bought a new car which you intend to use as a public utility vehicle for P950,000. The expected life of the car is ten (10) years for its intended use. Your driver and you agreed that for the first five (5) years , your “boundary” is P1,500.00 per day and P1,000.00 per day for the rest of its economic life. You also expected a repair and maintenance costs of P30,000 every six (6) months from year one (1) to five (5) and P50,000 from year six (6) to ten (10). At the end of 10 years you can sell the car for P100,000. If your MARR on invested capital is 15% every (6) months, determine whether this is a good investment. Use the Anual Worth method in your solution. Indicate all other assumptions you use in your analysis.Use manually solve and don't use excel.You bought a new car which you intend to use as a public utility vehicle for P950,000. The expected life of the car is ten (10) years for its intended use. Your driver and you agreed that for the first five (5) years , your “boundary” is P1,500.00 per day and P1,000.00 per day for the rest of its economic life. You also expected a repair and maintenance costs of P30,000 every six (6) months from year one (1) to five (5) and P50,000 from year six (6) to ten (10). At the end of 10 years you can sell the car for P100,000. If your MARR on invested capital is 15% every (6) months, determine whether this is a good investment. Use the Future Worth method in your solution. Indicate all other assumptions you use in your analysis.Use manually solve and don't use excel.A pole for an electric distribution cost P10k and is expected to last for 7 years before replacement. If this pole is treated it is expected to last for 15 yrs before replacement but will cost P18k. Assuming the cost of renewal is to be the same compute the saving with the use of the more economical pole at i = 18% compounded annually. a. P14,575.666b. P5064.612c. P19,640.278d. P28,115.276