The initial cost of the oil rig is P 20M while the book value after a year is P18M. If the total oil deposits in the oil is 200Giga gallons, what is the production rate of oil in that year in Megabarrels?

Q: A machine worth Php50,000 is expected to last for 3 years. During its operation, a maintenance cost…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: The Bread Company is planning to purchase a new machine that it will depreciate on straight-line…

A: The Accounting rate of retrun is calculated with the help of following formula ARR = Average Annual…

Q: In an investment project, the initial cost of investment is $400,000. The annual revenues are…

A: Payback period:  The payback period (PBP) is an investment assessment approach that determines how…

Q: An iron ore of 50x10^6 ton was produced during 15 years and has been sold for $100 per ton Estimate…

A: The Net Present Value: The net of the present values of cash inflows and outflows of a project over…

Q: Consider palletizer at a bottling plant that has a first cost of $134,338, has operating and…

A: Given data, Initial investment = $134,338 Operating and maintenance cots= $17,980 Net salvage value…

Q: Determine Annual worth values

A: Annual worth (AW) method is for evaluating the alternatives or investment proposals. It is the…

Q: Compute the equivalent annual cost to own equipment with an initial investment of $54,000, yearly…

A: Equivalent annual cost (EAC) is the total annual cost of owning, operating, and maintaining an asset…

Q: A certain machine costs GH¢25000 and lasts 6 years, after which time it has a scrap value of…

A: A capitalized cost of an asset is the cost incurred on an asset to put it to use. Capitalized cost…

Q: how would i find the payback period

A:

Q: $500,000 is invested in equipment having a salvage value equal to $500,000(0.80n) after n years of…

A: The frequency of replacements that will minimize EUAC is the optimum replacement interval .  Minimum…

Q: The Chum Company is considering the production of a new product line which will require an…

A: The return on investment is a comparable tool that is used to measure the particular investment and…

Q: The Janna Company is planning to purchase a new machine. The payback period will be six years. The…

A: The payback period is the time taken by the investment to recover its cost. The payback does not…

Q: An investment of $875,000 in equipment will produce annual profits of $175,000 for eight years. The…

A: Investment amount = $ 875000 Annual profit = $ 175000 Residual value = $ 40000 Period = 8 Years

Q: An investment of P270,000 can be made in a project that will produce a uniform annual revenue of…

A: NPV It is a capital budgeting tool to decide on whether the capital project should be considered or…

Q: It is estimated that a timber tract will yield an annual profit of P100,000 for 6 years, at the end…

A: The value of an asset purchased should be on par with its future profits and expected return. Thus,…

Q: compute the NPV (Evaluate the project only for 4 years)

A: Assuming N is 4 years, equipment is depreciated over 6 year period. Initial Investment =…

Q: The operating cost for a pulverized coal cyclone furnace is expected to be $80,000 per year. The…

A: The cost for a year of possessing and operating an asset for its whole lifespan is known as the…

Q: Jones Company’s new truck has a cost of $20,000, and it will produce end-of-year net cash inflows of…

A: The modified internal rate of return (MIRR) is a financial indicator of the attractiveness of an…

Q: An investment of P200,000 can be made in a project that will produce a uniform annual revenue of…

A: As per the honor code, we’ll answer only one question at a time, we have answered the first question…

Q: A new alloy can be produced by Process A, which costs $200,000 to implement. The operating cost will…

A: A method of capital budgeting that helps to evaluate the present worth of cash flow and a series of…

Q: Consider a palletizer at a bottling plant that has a first cost of $150,000, has operating and…

A: The future value equivalent cost is the future value of the costs associated with the investment at…

Q: An investment project requires an initial expenditure of $160 000.00 with a salvage value of $30…

A: Calculate NPV of the project to determine whether project should be undertaken or not.

Q: An equipment is expected to cost 200,000$ to be used for 3 years, and to have an annual operating…

A: Annual worth of a project means the amount which is going to be generated by the project on an…

Q: Hashim Sdn. Bhd. plan to introduce a new product line with an initial investment of RM 1.5 million…

A: The payback period is the method of determining the ability of a project to recover its initial…

Q: A new machine for your company has a first cost of $80,000 and an estimated net salvage value of…

A: Net present value describes the amount of cash flows that need to be calculated at the present…

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 =…

Q: The NUBD Co. is planning to purchase a new machine for P300,000. The payback period is expected to…

A:

Q: An investment of $23,500 in new equipment will generate income of $6,500 per year for 10 years. What…

A: PV of cash outflow=$23,500 Income per year=$6,500 Duration(n)=10 years   As per the equation of IRR,…

Q: 1. A company wants to buy a drilling machine that will go down to 300 meters. When this drilling…

A: The computation is done below:

Q: A printing press machine has a cash equivalent of P250,000. For the first three years, it will…

A: Initial cost (C) = P 250000 Profit in year 1 (A1) = P 20000 A2 = P 20000 A3 = P 20000 A4 = P 35000…

Q: The operating cost of a pulverized coal cyclone furnace is expected to be $80,000 per year. The…

A: Formulas:

Q: Calculate the annual worth of a machine that has an initial cost of $35,000, a life of 10 years, and…

A: Interest Rate = 15% per year Initial Cost = 35000 Time Period (N) = 10 years Cash Flows: Year…

Q: The initial investment cost of machine A is 9,000 TL, the useful life of the machine is 6 years and…

A: Time value tells that money received today is of more value than that of receiving exact value later…

Q: The NUBD Co. is planning to purchase a new machine. The payback period will be 6 years. The cash…

A: Payback period means the time period or time duration, it takes for recovering the investment cost.…

Q: A project requires an investment of $17,000 and is expected to generate annual cash flows of $8,500…

A: Capital budgeting is a method with the help of which the capital projects and investments are…

Q: Packaging equipment for Xi Cling Wrap costs $60,000 and is expected to result in end-of-year net…

A: MARR is used as a hurdle rate in the capital budgeting projects. It is that minimum rate which an…

Q: a. Internal Rate of Return (IRR) b. Payback Period (PBP) c. Benefit-Cost Ratio (BCR)

A: Capital budgeting decisions are usually divided into two categories such as screening decision and…

Q: The company will invest for a 2-year project. The first year, return of the investment is 240.000…

A: Formula for calculating PV: PV=FV×11+rn where FV=Future value r=interest rate n=number of years…

Q: The initial cost of a pulverized coal cyclone furnace is $800,000. If the operating cost is $90,000…

A: Given information: Initial cost is $800,000 Operating cost in year 1 is $90,000 Operating cost in…

Q: A new machine will cost P17000 and will have an estimated salvage value of P11000 in five years.…

A: Total first cost (C) = P 17000 + P 5000 = P 22000 Total salvage value (S) = P 11000 + P 2500 = P…

Q: Improvements will be made in an assembly line with an initial investment cost of 67 000 TL, annual…

A: Present value (PV) measures how much money is need to be invested now in order to finance upcoming…

Q: One oil company is considering 5 pipe sizes for a new pipeline. The costs for each of them are given…

A: The question is based on the concept of capital budgeting for decision making. Here  present value…

Q: A conveyor system costs $110,000 to install. The salvage value of the conveyor system decreases by…

A: The EUAC and ORI is Computed by finding out the Present value and the EUAC for each of the year. The…

Q: ABC Corporation is considering starting to manufacture a new product where an equipment costing…

A: When the company will sell the Break even units, the company will sell the number of units to cover…

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.