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5 It is estimated that a certain piece of equipment saves Rs.260000 PLO-2 6 per year...
must draw cash flow diagram 5 It is estimated that a certain piece of equipment saves...
must draw cash flow diagram
5 It is estimated that a certain piece of equipment saves Rs.260000 PLO-2 6 per year in labour and material costs. The equipment has an njk expected life of 8 years and a market value of Rs.80000. If the company must earn a 15% annual return on such investment, how much is justified now for the purchase of this equipment. Draw a cash-flow diagram from the company's view point.
ANSWER THE FOLLOWING QUESTIONS:- It is estimated that a certain piece of equipment can save $22,000 per year in labor (...
ANSWER THE FOLLOWING QUESTIONS:-
It is estimated that a certain piece of equipment can save $22,000 per year in labor (a) and materials costs. The equipment has an expected life of five years and no market value. If the company must earn a 15% annual return on such investments, estimate how much money could be justified now for the purchase of this piece of equipment? Draw a cash-flow diagram from the company's viewpoint 73,747 $2.31 per gallon. In 1993, the...
Question 6 An investment in a robotic welder can save $1,000,000 per year in labor costs. The equipment has an expe...
Question 6 An investment in a robotic welder can save $1,000,000 per year in labor costs. The equipment has an expected life of five years and no market value. 1. Draw a cash-flow diagram from the company's viewpoint. 2. If the company must earn a 15% annual return on such investments, how much could be justified for the purchase of this piece of equipment? 3. If the company must earn a 20% annual return on this investment, how much could...
a) A piece of equipment costing K10,000 has an expected life of 5 years. It is...
a) A piece of equipment costing K10,000 has an expected life of 5 years. It is estimated that the cash now resulting from the use of this machine will be K4, 000 per year. The rate of return expected from the capital of this type is fifteen percent. Required: Calculate the following: i. ii. iii. The payback period. The net present value The internal rate of return 2 marks 5 marks 5 marks b) A firm is faced with two...
Lukow Products is investigating the purchase of a piece of automated equipment that will save $120,000 each year in direct labor and inventory carrying costs
Lukow Products is investigating the purchase of a piece of automated equipment that will save $120,000 each year in direct labor and inventory carrying costs. This equipment costs $910,000 and is expected to have a 11-year useful life with no salvage value. The company's required rate of return is 10% on all equipment purchases. Management anticipates that this equipment will provide intangible benefits such as greater flexibility and higher-quality output that will result in additional future cash inflows. Click here to...
Case study 5: A piece of automated production equipment has a first cost of $120,000. The...
Case study 5: A piece of automated production equipment has a first cost of $120,000. The service life is 6 years, the anticipated salvage value is $10,000, and the annual maintenance costs are $4000. The equipment will produce at the rate of 10 units/h, each unit worth $2.20 in added revenue. One operator is required full time to tend the machine at a rate of $14.00/h. Assume that no overhead rates are applicable. Raw material costs equal $0.3/unit. Use a...
Lukow Products is investigating the purchase of a piece of automated equipment that will save $130,000 each year in direct labor and inventory carrying costs
Lukow Products is investigating the purchase of a piece of automated equipment that will save $130,000 each year in direct labor and inventory carrying costs. This equipment costs $920,000 and is expected to have a 6-year useful life with no salvage value. The company's required rate of return is 11% on all equipment purchases. Management anticipates that this equipment will provide intangible benefits such as greater flexibility and higher-quality output that will result in additional future cash inflows. Click here to...
There have four questions！ 6. Omega plc purchased a piece of equipment at a cost of...
There have four questions！
6. Omega plc purchased a piece of equipment at a cost of £125,000. It is expected to have a useful economic life of 5 years and a scrap value of £25,000 at the end of its life. Omega uses straight line depreciation and a full year of depreciation is charged in the year of purchase. What would be the annual depreciation charge and the net book value (NBV) of the equipment at the end of the...
2. CI has a poor record of compliance and they must invest in equipment to reduce...
2. CI has a poor record of compliance and they must invest in equipment to reduce hazardous waste emissions or face EPA fines of $20,500 per year (This is avoided cost if a Filter is purchased, thus a benefit). A Reduction filter will cost $72,500 and have an expected life of 6 years. CI's MARR (hurdle rate) is 11% Draw the cash flow diagram (7points) b. Solve for IRR of this investment (30 points) Hint: Start with double digit %'s....
You are required to prepare the cash budget for the second quarter of the year for DMA for the mo...
You are required to prepare the cash budget for the second
quarter of the year
for DMA for the months of April, May, and June; including the cash
collections
schedule and cash disbursements schedule. Grades will be awarded as
follows:
i. Cash Collections Schedule for the second quarter.
ii. Cash Disbursements Schedule for the second quarter.
iii. Cash Budget for the second quarter.
Sales Forecasts for 2020 in S July 3000 000 August3 000 000 March1 800 000 September3 200...
must draw cash flow diagram
5 It is estimated that a certain piece of equipment saves Rs.260000 PLO-2 6 per year in labour and material costs. The equipment has an njk expected life of 8 years and a market value of Rs.80000. If the company must earn a 15% annual return on such investment, how much is justified now for the purchase of this equipment. Draw a cash-flow diagram from the company's view point.
ANSWER THE FOLLOWING QUESTIONS:-
It is estimated that a certain piece of equipment can save $22,000 per year in labor (a) and materials costs. The equipment has an expected life of five years and no market value. If the company must earn a 15% annual return on such investments, estimate how much money could be justified now for the purchase of this piece of equipment? Draw a cash-flow diagram from the company's viewpoint 73,747 $2.31 per gallon. In 1993, the...
Question 6 An investment in a robotic welder can save $1,000,000 per year in labor costs. The equipment has an expected life of five years and no market value. 1. Draw a cash-flow diagram from the company's viewpoint. 2. If the company must earn a 15% annual return on such investments, how much could be justified for the purchase of this piece of equipment? 3. If the company must earn a 20% annual return on this investment, how much could...
a) A piece of equipment costing K10,000 has an expected life of 5 years. It is estimated that the cash now resulting from the use of this machine will be K4, 000 per year. The rate of return expected from the capital of this type is fifteen percent. Required: Calculate the following: i. ii. iii. The payback period. The net present value The internal rate of return 2 marks 5 marks 5 marks b) A firm is faced with two...
Case study 5: A piece of automated production equipment has a first cost of $120,000. The service life is 6 years, the anticipated salvage value is $10,000, and the annual maintenance costs are $4000. The equipment will produce at the rate of 10 units/h, each unit worth $2.20 in added revenue. One operator is required full time to tend the machine at a rate of $14.00/h. Assume that no overhead rates are applicable. Raw material costs equal $0.3/unit. Use a...
There have four questions！
6. Omega plc purchased a piece of equipment at a cost of £125,000. It is expected to have a useful economic life of 5 years and a scrap value of £25,000 at the end of its life. Omega uses straight line depreciation and a full year of depreciation is charged in the year of purchase. What would be the annual depreciation charge and the net book value (NBV) of the equipment at the end of the...
2. CI has a poor record of compliance and they must invest in equipment to reduce hazardous waste emissions or face EPA fines of $20,500 per year (This is avoided cost if a Filter is purchased, thus a benefit). A Reduction filter will cost $72,500 and have an expected life of 6 years. CI's MARR (hurdle rate) is 11% Draw the cash flow diagram (7points) b. Solve for IRR of this investment (30 points) Hint: Start with double digit %'s....
You are required to prepare the cash budget for the second
quarter of the year
for DMA for the months of April, May, and June; including the cash
collections
schedule and cash disbursements schedule. Grades will be awarded as
follows:
i. Cash Collections Schedule for the second quarter.
ii. Cash Disbursements Schedule for the second quarter.
iii. Cash Budget for the second quarter.
Sales Forecasts for 2020 in S July 3000 000 August3 000 000 March1 800 000 September3 200...
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