The cost for manufacturing a component used in intelligent interface converters was $23,000 the first year. The company expects the cost to increase by 2% each year. Calculate the present worth of this cost over a five-year period at an interest rate of 10% per year.

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Q: Your firm is thinking about investing $200,000 in the overhaul of a manufacturing cell in a lean…

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Q: A company is considering the purchase of a new machine for $61000. Management predicts that the…

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A: a. The calculation of old VNC is: The formulae image is:

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A:

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A: Equivalent annual cost is yearly cost of operating, maintaining and owing asset over its full life.

Q: EXCEL, an equipment costing $100,000 has a useful life of 6 years. It has a resale value of $8,000.…

A: given information equipment costing = $100,000 useful life= 6 years resale value = 8000 annual cost…

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A: a) Computation: Hence, the payback period at 0% interest rate is 5 years.

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A: First quarter cost = $ 80 Increase in cost per quarter = $ 2 Number of quarters in 3 Years = 3*4 =…

Q: and what will be the cost per unit.

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Q: The cost to manufacture a component used in intelligent interface was $22,000 the first year. The…

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Q: A company is considering the purchase of a new machine for $54,000. Management predicts that the…

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Q: A company plans to spend $ 153703 to install a new machine. Annual maintenance cost is$ 11339.…

A: An initial investment of new machine = $153703 Annual maintenance cost = $11339 Annual income =…

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A:

Q: A company expects the cost of equipment maintenance to be $5,000 in year one, $5,500 in year two,…

A: Answer -  Given,  Maintenance Cost = $5000 Gradient G = $500 I = 5%

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A: Equivalent Annual Cost (EAC) : It is a capital budgeting method, it is used where only annual cost…

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A: Information Provided Machine first cost = $20,000 Savings in the first year = $1500 Increment in…

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A: Equivalent annual worth is the technique which is used for investment proposal assessment. It can be…

Q: Metalfab Pump and Filter, Inc. estimates that the cost of steel bodies for pressure valves will…

A:

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A: Payback Period: The payback period is the simple method of capital investment evaluation. It counts…

Q: A machine costing $150 000 has a useful life of eight years, after which time its estimated resale…

A: Answer  Cost = $150,000  Useful life  = 8 year  Discounting rate = 20% PVAIF @20% for 8 year = 3.838

Q: Pittsburgh Custom Products (PCP) purchased a new machine for ram cambering large I beams. PCP…

A: The question is based on the concept of calculation of present value of expected future revenue .…

Q: ny expects the cost of equipment maintenance to be $5,000 in year one, $5,500 in year two, and…

A: The given problem can be solved using NPV function in excel.

Q: The cost to manufacture a component used in intelligent interface was $22,000 the first year. The…

A: Present value method of calculation is used to know the value of future money at present date. The…

Q: A company expects the cost of equipment maintenance to be $5,000 in year one, $5,500 in year two,…

A: The worth of a predicted revenue stream assessed as of the date of valuation is known as present…

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A: Uniform annual payment can be calculated by using this equation P =PW*r1-1(1+r)n where P=uniform…

Q: A company that makes self-clinching fasteners expects to purchase new production-line equipment in 3…

A:

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.