Question

please help

ill rate even if you only get 2/3 correct

Your company manactures widgets and you're about to starting a new type of widget the Super Wide Supreme. The new equipment manufacture the Super Widget Supreme cost $10.000, and you mate your expenses cach e $3.000. You plan to manufacture them for 20 years, which point you will be able to the equipment for $2.000 if your company's MARR 10% how much evene do you need to make each year on the sale of Super Widget Suomes for the worm of the project to be than 0 What is the value of the investment ound to the nearest contemplaces) include the negativen ) s s o und to the nearestent 2 decimal places) How much revenue do you need to make each year on the sale of Superwidget Supremes for the o und to the recent - 2 decimal places) s

your company manufaftjres widgets. the new widget will cost $10,000 and you estimate each year will cost $3,000. you plan to manufacture them for 20 years at which point you will sell the equipment for $2,000. the MARR is 10%, how much revenue do you need to make each year for the annual worth of the project to be greater than 0?

1. what isthe annualized value of the initial capital investment? include negative sign

2. what is the annualized value of the salvage value?

3. how much revenue do you need to make each year on the sale of the widget for the annual worth of the project to be greater than 0?

Answer 1

Year $ Initial cost Divided by: Annuity PV factor @ 10% for n = 20 Annualized value of the initial cost of new equipment 10,000 8.51356 1,174.60 $ $ Salvage value Multiply: PV factor @ 10% for 20 years Present value of salvage value Divided by: Annuity PV factor @ 10% for n = 20 Annualized value of the salvage value $ 2,000 0.14864 297.28 8.51356 34.92 $ PV factor @ 10% 0.90909 0.82645 0.75131 0.68301 0.62092 0.56447 0.51316 0.46651 0.42410 0.38554 0.35049 0.31863 0.28966 0.26333 0.23939 0.21763 0.19784 0.17986 0.16351 0.14864 8.51356 $ $ Annualized value of the initial cost of new equipment Add: Annual expenses Less: Annualized value of the salvage value Annual revenue needed 1,174.60 3,000.00 (34.92) 4,139.68 $ 18 Total