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- A computerized wood lathe, costing P25,000, will be used to make ornamental parts for sale. Receipts are estimated at P60,000 per year with costs running P55,000 per year. The salvage value is P9,000 at the end of 10 years. If the MARR is 12%, what is the present worth of this investment? a) P 7,877.89 b) P 6,148.87 c) P 50,353.36 d) P 56,148.87Calculate the capitalized cost of a project that has an initial cost of P3,500,000 and an additional cost of P1500, 000 at the end of every 10 yrs. The annual operating costs will be P150, 000 at the end of every year for the first 5 years and P180, 000 thereafter. In addition, there is expected to be recurring major rework cost of P400, 000 every 13 yrs. Assume i =18% a.Php 4,467,564.367 b.Php 5,673.467.567 c.Php 5,534,673.123 d.Php 4,813,109.563Consider palletizer at a bottling plant that has a first cost of $140,855, has operating and maintenance costs of $13,484 per year, and an estimated net salvage value of $70,966 at the end of 30 years. Assume an interest rate of 8%. What is the future worth of this project?
- Please answer as quickly as possible A project is currently under review. An initial investment of $87,000 would be necessary for equipment. The profit is expected to be $21,000 each year, over the 6 year project period. The salvage value of the equipment at the end of the project period is projected to be 17,000. Assume a MARR of 9%. Find an ERR for this project (exact value or smallish interval). (Be careful with +/- signs) (if your approach requires a starting point, use 12%)A remotely situated fuel cell has an installed cost of $2,000 and will reduceexisting surveillance expenses by $350 per year for eight years. The border security agency’s MARR is 10% per year. Solve, a. What is the minimum salvage (market) value after eight years that makes the fuel cell worth purchasing? b. What is the fuel cell’s IRR if the salvage value is negligible?DRAW CASH FLOW DIAGRAM Calculate the capitalized cost of a project that has an initial cost of P8,000,000 and an additional cost of P250,000 at the end of every 8 years. The annual operating costs will be P150,000 at the end of every year for the first 5 years and P200,000 thereafter. In addition there is expected to be recurring major rework cost of P500,000 every 13 years. Assume i=12%
- Calculate the capitalized cost of a project that has an initial cost of P3500000 and an additional investment cost of P950000 at the end of every 8 years. The annual operating cost will be P120000 at the end of every year for the first 5 years and P150000 thereafter. In addition there is expected to be a replacement cost of P350000 every 12 years. The interest rate is 12%. Also show the cash flow diagram.Quick Computing currently sells 10 million computer chips each year at a price of $20 per chip. It is about to introduce a new chip, and it forecasts annual sales of 12 million of these improved chips at a price of $25 each. However, demand for the old chip will decrease, and sales of the old chip are expected to fall to 3 million per year. The old chips cost $6 each to manufacture, and the new ones will cost $8 each. What is the proper cash flow to use to evaluate the present value of the introduction of the new chip? Note: Enter your answer in millions.Giving the following information on machine A and machine B and assuming an 8.6% MARR, which mutually exclusive alternative should be selected?
- A recent graduate who wants to start an excavation/earth-moving business is trying todetermine which size of used dump truck to buy. As the bed size increases, new incomeincreases; however, the graduate is uncertain whether the incremental expenditure requiredfor larger truck is justified. The cash flows associated with each size truck are estimated below.The contractor has established a MARR of 18% per year, and all trucks are expected to have aremaining economic life of 5 years. Using a Do Nothing (DN) option, using SPREADSHEET only,a. Determine which size truck should be purchased.b. If two trucks are to be purchased, what should be size of the second truck?Compute the capitalized cost of a new car worth P800,000.00 if it is estimated that it requires P20,000.00 per year to maintain and must be replaced at the same amount with a salvage value of P300,000.00 after 5 years if the interest rate is 12% per annum. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Capital recovery (CR) is the equivalent annual amount that an asset, process, or system must earn each year to just recover the first cost and a stated rate of return over its expected life. Salvage value is considered when calculating CR. True False