Zwane has a debt that will be R1000 in 11 months. He has 3 options to consider for his repayment. For each option, determine the single payment he will make to fully repay his debt if the cost of money is 15% per annum? (a) now (b) six months from now (c) in one year
Q: Maintenance cost for a new piece of manufacturing equipment is expected to be $5,000 in the first…
A: Given that; A = $5,000 G = $250 i = 10% n = 5 P = ?
Q: The National Highway Traffic Safety Administration raised the average fuel efficiency standard to…
A: Given The National Highway Traffic Safety Administration raised the average fuel efficiency…
Q: An alumni of Jamia Millia Islamia wanted to set up an endowment fund that would award scholarships…
A: Formula: Capitalised cost(CW) =Annual cost + (Annual cost / interest rate).
Q: Five years ago, Logocom made a $ million investment in a new high-temperature material. The product…
A: The Rate of return can be calculated as
Q: nd the capitalized cost at 15% interest, initial cost $200000, Annual operating cost $4000
A: Below is the given values: Interest rate = 15% Initial cost = $200000 Annual operating cost = $40000…
Q: A present cost of S 500,000 annual costs of $55,000, and periodic costs every 5 years of $85,000.…
A: Capitalized cost refers to the present value of cash flows that last indefinitely. The cash flow…
Q: 2. Personal Finances A certain U.S. government savings bond can be purchased for $7,500. This bond…
A: Present value (PV) = $7500 Future value (FV) = $10000 Maturity period (n) = 5 years FV = PV(1+r)5…
Q: A start-up company sets aside 1,100,000 now into an exigency fund, how much will have the company…
A: The term 'exigency' indicates urgency. Thus exigency fund indicates a fund kept for urgency…
Q: thods. Method A will have a first cost of RM 40,000, an annual operating cost of 00, and a service…
A: Because which method given in question do not have equal life. So first we, change in life into…
Q: The manager of a canned-food processing plant is trying to decide between two different labelling…
A: If a firm is confronted with two totally unrelated ventures, the determination of one of them keeps…
Q: Swagelok Enterprises is a manufacturer of miniature fittings and valves. Over a 5-year period, the…
A: The first cost is $30,000. Annual cost (AC) is $18,000. Annual revenue (AR) is $27,000. Salvage…
Q: Company A plans to replace with one of their current equipment with one of the three options shown…
A: The image below contains the formula behind the cells:
Q: A bulk materials hauler purchased a used dump truck for $50,000 two years ago. The operating costs…
A: Here, n is 24 months (2 years) Present value is $50,000. Since the monthly revenue is $7,500 and…
Q: Engineer Miranda ended his account in Smart postpaid having of cost of 800PhP for his last bill of…
A: To solve the above question firstly we find the number of months for which smart postpaid is paid…
Q: A consulting engineering firm is considering two models of SUVs for the company principals. A GM…
A: Summary of given information: GM Model Ford model First cost (FC) $36,000 $32000 Operating…
Q: You plan to make a lump-sum deposit of $5000 now into an investment account that pays 6% per year,…
A: The timeline for this question is drawn below:
Q: A wealthy businessman wants to start a permanent fund for supporting research directed toward…
A: Any expense that incurs when a fixed asset is bought or built is known as capitalized cost. These…
Q: A city is planning to build a new stadium. The new stadium will cost $250 million. The stadium will…
A: The initial cost (IC) is $250,000,000. Annual upkeep cost (AC) is $80,000. Replacement cost for…
Q: An electronics firm invested $50,000 in a precision inspection device. They spend $1500 each year to…
A:
Q: The annual worth of investing $50,000 now and $20,000 per year starting in year 16 and continuing…
A: Here we calculate the annual worth and choose the correct information by using the given information…
Q: Faro laser trackers are portable contact measurement systems that use laser technology to measure…
A: The annual income received from the investment made by the individual is referred to as rate of…
Q: Two alternatives are considered for a project that lasts for 3 years. Alternative A has an initial…
A: Project: It refers to any deal that helps a business grow. Any project needs investment due to which…
Q: Wilson Bryant Air Conditioning, a Middle Georgia HVAC company, wanted to build a web-based project…
A: Cash flow is a metric that shows how much money a company has brought in or spent over a certain…
Q: Arc-bot Technologies, manufacturers of six-axis, electric servo-driven robots, has experienced the…
A: a. Table 1 shows the cash flow:
Q: A consulting engineering firm is considering two models of SUVS for the company principals. A GM…
A: given that, GM model first cost $36000 GM model operating cost is $4000 GM model, salvage value…
Q: In order to build a new warehouse facility, the regional distributor for Valco Multi-position Valves…
A:
Q: A construction company borrow $30,000 to purchase a truck. The bank has offered the following choice…
A: People want to minimize expenditure.
Q: A professional mechanics who specializes in truck engines paid $50,000 for equipment that will have…
A:
Q: the first three years, it will prov of profit each year. For the n hual profit will be P35,000. For…
A: Given that, Investment is P250000 first, three-year profit is P20000. next four-year profit is…
Q: A man buys a corporate bond from a bond brokerage house for $875. The bond has a face value of $1000…
A: Rate of return(RoR) is the obtained gain or loss of an investment(I) over a particular time period.…
Q: How much should a new graduate pay in 15 equal annual payments, starting 3 years from now, in order…
A: The measure that depicts the current stream of income being discounted at a specified rate of return…
Q: Harley worked for many years to save enough money to start his own residential landscape design…
A: ERR or External rate of return"it is the rate of return on a project where any excess cash from a…
Q: Chemical engineers at a Coleman Industries plant in the Midwest have determined that a small amount…
A: Use the below formula: EPW = Initial Investment + Annual Cash Flow*(P/A,i,Years) + [Annual Cash…
Q: How much money could RTT Environmental Services borrow to finance a site reclamation project if it…
A: Given: i=0.1 , n= 5, expenses (E)=$90000, Revenue (R) = 280000
Q: For the cash flows shown, determine the incremental cash flow between machines B and A for (a) year…
A: Given: First Cost: A: -15000, B:-25000
Q: the nonconventional bet cash fnow series shown, the external rate of retum per year using the MIRR…
A: Solution given below,
Q: 1. The company consulted a roofing coating contractor who presented the company with two options.…
A: The net gain or loss of Associate in Nursing investment over a selected fundamental measure,…
Q: Eight energy corporations made plans to increase their combined spending on efficiency programs to…
A: Future Worth=A×(1+i)n-1i Where; A=Annual payment i= interest rate n= Number of years Here; A= $50…
Q: A 50m2 apartment is for sale for $50,000 down payment plus $100,000 at the end of 1 year. The seller…
A: Alternative 1: Down payment =$50,000 And $100,000 at the end of one year…
Q: A business owner is comparing between three alternatives (A, B, and C) for their new project. A Buy…
A: We are going to find the efficient alternative with respect to cost using future worth analysis to…
Q: Acompany that manufactures clear PVC pipes is investigating the production options of batch and…
A: We are going to find the present worth for both the options to answer this question.
Q: A consulting engineering firm is considering two models of SUVs for the company principals. A GM…
A: The annual worth is the sum of all the advantages and expenses over the course of a year. We…
Q: A sum of $5000 is deposited in a project account and leftover to earn interest for 15 years. If the…
A: Amount deposited in a project account = $5000 The interest rate on the amount = 12% Time duration =…
Q: A professional mechanics who specializes in truck engines paid $46,000 for equipment that will have…
A: Simply we can understand that the break even point is known to be as that point where there exist no…
Q: he first cost of a certain equipment is P350.000 and a salvage value of P48,000 at the end of its…
A: A capitalized cost is a cost that is incurred from the purchase of a fixed asset that is expected to…
Q: A new office building was constructed 5 years ago by a consulting engineering firm. At that time the…
A: A loan is the lending of cash to other persons, companies, and so on from one or more persons,…
Q: An engineering alternative has a first cost of $12700, and is expected to have ne receipts of $1650…
A: Given that, An engineering alternative has a First cost = $12700 Expected to have net annual…
Q: A sum of dollar 5000 is deposited in a project account and left there to earn interest for 15 years.…
A: The amount deposited in the project account = 5000 dollars Interest earned for the duration = 15…
Q: The incomes for a business for 5 years are as follows: $8250, $12,600, $9,750, $11,400, and $14,500.…
A: Income for a business for 5 years are= $8250, $12600, $9750, $11400, $14500 Value of money= 8% So,…
Step by step
Solved in 2 steps
- The first cost of a fairly large flood control dam is expected to be $5 million. The maintenance cost will be $60,000 per year, and a $100,000 outlay will be required every 5 years. At interest of 10%, find the EUAC of the dam project.Buying Equipment 1 from XYZ company and company ABC will give the production similar productivity input of 400,000.00 per year. The equipment from company XYZ has a purchase price of 200,000.00, annual maintenance of 5,000.00, and production life of 10 years, while the equipment from company ABC has a purchase price of 100,000.00, annual maintenance of 2,000.00, and production life of 12. Using present worth method, what is the total present worth of each alternatives? Use MARR of 20%2. Personal Finances A certain U.S. government savings bond can be purchased for $7,500. This bond will be worth $10,000 when it matures in 5 years. As an alternative, a 60-month certificate of deposit (CD) can be purchased for $7,500 from a local bank, and the CD yields 6.25% per year. Which is the better investment if your personal MARR is 5% per year?
- Maintenance cost for a new piece of manufacturing equipment is expected to be $5,000 in the first year and increase $250 per year for every year thereafter. If the cost of funds is 10%, what is the present worth cost of maintenance for the next 5 years?A man buys a corporate bond from a bond brokerage house for $875. The bond has a face value of $1000 and a 4% coupon rate paid semiannually. If the bond will be paid off at the end of 12 years, what rate of return will the man receive?A new alloy can be produced by Process A, which costs $200,000 to implement. The operating cost will be $10,000 per quarter with a salvage value of $25,000 after its 2-year life. Process B will have a first cost of $250,000, an operating cost of $15,000 per quarter, and a $40,000 salvage value after its 4-year life. The interest rate is 8% per year compounded quarterly. Using present value analysis which process should be selected.
- Buying Equipment 1 from XYZ company and company ABC will give the production similar productivity input of 400,000.00 per year. The equipment from company XYZ has a purchase price of 200,000.00, annual maintenance of 5,000.00, and production life of 10 years, while the equipment from company ABC has a purchase price of 100,000.00, annual maintenance of 2,000.00, and production life of 12. Using present worth method, what is the present values of their purchase profit? Use MARR of 20%A construction company borrow $30,000 to purchase a truck. The bank has offered the following choice of payment plans. If the interest rate is 15%, which plan the company should choose? Use present worth analysis. Plan A: $5010 per year for 5 years Plan B:No payment for first 2 years, then $9048 per year for rest of 3 years.An electronics firm invested $50,000 in a precision inspection device. They spend $1500 each year to operate and maintain it. An additional $750 is spent in years 2 and 4 for software updates. At the end of 5 years, the firm changed their inspection procedure, eliminating the need for the device. The purchasing agent was very fortunate to sell the inspection device for $40,000, the original price. Compute the equivalent uniform annual cost during the 5 years the device was used. Assume interest at 10% per year.
- A project your firm is considering for implementation has these estimated costs and revenues: an investment cost of $50,000; maintenance costs that start at $5,000 at the end of year (EOY) 1 and increase by $500 each year until year 10 ; savings of $20,000 per year (EOY 1–10); and finally a resale value of $35,000 at the EOY 10. If the project has a 10-year life and the firm’s MARR is 10% per year a) what is the present worth of the project? PW = $___ b) What is the Future Worth of this project? FW = $___ c) What is IRR ? IRR = ___ % d) Is it a sound investment opportunity? YES or NO e) Determine the Discounted Payback? ____ 5 yearsin 5 years, $18000 will be needed to pay for a building renovation. in order to generate this sum, a sinking fund consisting of three annual payments is established now. no further payments will be made after the third year. what payyments are most nearly necessary if money is worth 15% per year?A spare parts supplier they have a contract that involves purchasesfor $ 240,000 per year, the first purchase It would be done today and other similar ones would follow for the next five years. Determine the present value of the contract, with a rate interest of 10% per year.