What is breakeven point for each parameter if initial investment is £.30k, yearly revenue £20k, Yearly expenditure £5k, market value £1k while useful life is 5 years and MARR is 8%.
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What is breakeven point for each parameter if initial investment is £.30k, yearly revenue £20k, Yearly expenditure £5k, market value £1k while useful life is 5 years and MARR is 8%.
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- What is breakeven point for each parameter if initial investment is £30K, yearly revenue £20K, Yearly expenditure £5K, market value £1k while useful life is 5 years and MARR is 8%. Also find n at breakeven point.There are three alternatives X,Y,Z. With 10% MARR, which alternative should be chosen based on following conditions and why? For X, initial cost is $10k, yearly revenue is $6K, Salvage is $1k and useful life is calculated as 2yrs. For Y, initial cost is $15k, yearly revenue is $10K, Salvage is -$2k and useful life is calculated as 3yrs. For Z, initial cost is $12k, yearly revenue is $5K, Salvage is $3k and useful life is calculated as 4yrs.The required investment cost of a new, large shopping center is $50 million. The salvage value of the project is estimated to be $22 million (the value of the land). Theproject's life is 17 years and the annual operating expenses are estimated to be $18 million. The MARR for such projects is 15% per year. What must the minimum annual revenue be to make the shopping center a worth whileventure?
- After you have conducted a future worth comparison of alternatives, what do you multiply the FW values by in order to obtain the AW values of the alternatives?An equipment costing $57,500 is being considered for a production process at Dewey Chemicals. The expected benefits per year is $4,500 and estimated salvage value is $10,000. Determine the rate of return the company can get in this equipment proposal. Equipment life = 15 years.Present Worth and Capitalized CostA restaurant owner is trying to decide between two different garbage disposals. A regular steel (RS) disposal has an initial cost of P3500, a life of 4 years and a maintenance cost of P100 at the end of the second year. The alternative is a corrosion-resistant disposal constructed primarily of stainless steel (SS). The initial cost of SS disposal is P6000, but it is expected to last for 6 years. Because the SS disposal has a slightly larger motor, it is expected to cost about P200 per year to operate. The salvage value of SS disposal is expected to be P500 at the end of 6 years. If the interest rate is 15% per year compounded quarterly. (a.) Draw the cash flow diagram. (b.) Which disposal should be selected?
- You purchased a building five years ago for $200,000. Its annual maintenance expense has been $15,000 per year. At the end of three years, you spent $55,000 on roof repairs. At the end of five years (now), you sell the building for $250,000. During the period of ownership, you rented out the building for $60,000 per year paid at the beginning of each year. If your MARR is 8% per year. a) Use the PW and AW methods to evaluate this investment. b) Calculate IRR and ERR(( Ԑ=MARR). (Upload the picture of your complete solutions including the correct cash flow diagram and your conclusion.)You purchased a building five years ago for $200,000. Its annual maintenance expense has been $15,000 per year. At the end of three years, you spent $55,000 on roof repairs. At the end of five years (now), you sell the building for $250,000. During the period of ownership, you rented out the building for $60,000 per year paid at the beginning of each year. If your MARR is 8% per year. a) Use the PW and AW methods to evaluate this investment. b) Calculate IRR and ERR(( Ԑ=MARR). include the cash flow diagram and conclusionThe first cost of a certain piece of equipment is Php50,000. It will have an annual operating cost of Php20,000 and Php5,000 salvage value after its 5 year life. At an interest rate of 10% per year, the capitalized cost of the equipment is,,, ANSWER WITH COMPLETE ANSWER
- To choose the best alternative among the given alternatives in the annual cash flow analysis method, it is necessary to compute the EUAW for each alternative over a period of one cycle only. True / FalseA proposal is being considered to improve an existing roadway condition by resurfacing the road to reduce transportation costs. The cost of the project is $1,505,000. Present annual transportation cost for all traffic amounts to $1,955,000 per year and would continue if no improvement is made. After the improvement, annual transportation costs are estimated to be $1,700,000. Assume the life of the pavement design is 20 years and the minimum attractive rate of return (MARR) is 10.5 %. Evaluate this proposal by using the net present worth, benefit-to-cost ratio, and internal rate of return methods. Assume costs appear at the beginning of each year while benefits appear at the end of each year.Don't use excel or any tables, compute by a conventional method. Completely solve to fill in Blank 1, Blank 2, and Blank 3. Box the final answers. Write legibly or typewrite the solutions. A piece of production equipment is to be replaced immediately because it no longer meets quality requirements for the end product. The two best alternatives are a used piece of equipment (E1) and a new automated model (E2). The economic estimates for each are shown in the accompanying table. The MARR is 15% per year. Which alternative is preferred based on the: (c) repeatability assumption. Use FW method. FW (E1) = $_____? FW (E2) = $_____? The best alternative is E_____?