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- what is the EUAC corresponding to an overhaul cost of 4000 at year 3 for a machine with 7 years of useful life? use i=8%A fast-acting brake on a fast-turning lathe is estimated to save seven seconds per piece produced since the operator (paid at a rate of $15/hour) does not have to wait as long for the lathe to stop. 40,000 pieces are produced annually. Assuming a three-year life, no salvage value, and an 8% interest rate, what should be the maximum purchase price of the brake?A gold mine is projected to produce $15,000 each year during its first 4 years of operation, andthen produce $20,000 each year in years 5 through 10. If the effective annual interest rate is 6%,what is its present worth?
- An electric utility company is going to perform energy audits on homes that are at least 30 years old. The utility estimates that homeowners can save $5 per square foot annually as the result of weatherization, attic insulation, new ductwork, and high efficiency heat pumps. Fifteen years is the expected life of this weatherization incentive, and the annual interest rate is 8%. How much is justified to spend now on this project for a 1,500-square-foot home?Richard wants to ensure that at least some of his descendants are well educated in perpetuity. He is planning for 5 college students each generation at ₱125,000 each. He estimates that the generations will be spaced every 25 years, but the first generation will be in 10 years. If the trust will earn 6%, how much money should be deposited now? Solutions manual only, we don't need Microsoft Excel.You deposit $1000 today, $3000 one year from now and $4000 two years from now. If there are different interests as shown in the diagram below and if you have a $9000 at the end of year 3, what is the value of i? Select one: a. 4 b. 11 c. 13 d. 6 e. 8
- What is the future value of $4500 per year for 10 years invested at 5%? * a. $56,600 b. $7,330 c. $45,000 d. $38,908Brooke is evaluating two alternatives for improving the exterior appearance of her Victorian-style house that she is remodeling inside. She plans to keep this as her home for 20 more years. The house can be completely painted at a cost of $17,500. The paint is expected to remain attractive for 5 years, at which time repainting will be necessary. Every time the building is repainted (i.e., in years 5, 10, and 15), the cost will increase by 20% over the previous time. As an alternative, the exterior can be covered with a vintage-appearing vinyl-coated siding now and again 10 years from now at a cost 31% greater than the present cost of the siding. At a MARR of 10% per year, what is the maximum amount that Brooke should spend now on the siding alternative so that the two alternatives will just break even? Solve using factors. The maximum amount that Brooke should spend now on the siding alternative is $ Note:- Do not provide handwritten solution. Maintain accuracy and quality in your…A business invests $5000 and initially plans to achieve annual revenue of $1100/yr with $200/yr expenses (starting at the end of ar 1) for ten years. No market value if used for ten years. 1.If at the end of the sixth year, instead, the investment is sold for $1000, calculate the PW, FW and AW for a BTCF MARR of 12%. Is the investment a good one if used this way? Why?
- Asume you invest $3,500 today in an iveestment that promises to return $7,700 in exactly 10 years. a. Use the present value technique to estiate the IRR on this investment. b. if a minimum anual return of 9% is required would you recommed this investment.A micro-brewery is considering the installation of a newly designed boiler system that burns the dried, spent malt and barley grains from the brewing process. The boiler will produce process steam that powers the majority of the brewery’s energy operations, saving $450,000 per year over the boiler’s expected life of 10 years. If the interest rate is 12% per year, how much money can the brewery afford to invest in the new boiler system?A new machine can be purchased today for $450,000. The annual revenue from the machine is calculated to be $72,000, and the equipment will last 10 years. Expect the maintenance and operating costs to be $4500 a year and to increase $750 per year. The salvage value of the machine will be $35,000. What is the rate of return for this machine?