Homework Answers
Calculation of amount of expense at the end of year 3:
800(1.06)(1.06)(1.06)(1.03)(1.03)(1.03)=$1041
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The estimated annual expense for a new machine, in year zero dollars, is $800. This annual...
Engineering Economics 4 The capital investment for a new machine is $900,000. The current estimated annual expense i...
Engineering Economics
4 The capital investment for a new machine is $900,000. The current estimated annual expense is $100,000.This expense is estimated to increase at the rate of 6 per year. Assume that f (inflation rate) -5, N-5 years, Mv at the end of year seven is 10% of the capital investment, and the after-tax MARR (inflation-free) is 10 per year. (259) .1 What uniform annual revenue would the machine need to generate to break even? 4.2 If the machine...
The price of one item is $ 600 in year 4 and the general price inflation...
The price of one item is $ 600 in year 4 and the general price inflation rate was expected to be 5%per year. What is its estimated value in year 2 dollars (2) Please only fill in the number of the calculated result and round to the nearest Integer
A company is considering buying a CNC machine. In today's dollars, it is estimated that the...
A company is considering buying a CNC machine. In today's dollars, it is estimated that the maintenance costs for the machine (paid at the end of each year) will be $33,000, $35,000, $38,000, $39,000, and $42,000 for years 1 to 5, respectively. The general inflation rate (T) is estimated to be 6% per year, and the company will receive 14% return (interest) per year on its invested funds during the inflationary period. The company wants to pay for maintenance expenses...
A firm has invested $800 in a new machine that is expected to generate cash flows...
A firm has invested $800 in a new machine that is expected to generate cash flows over the next 9 years. The machine will be depreciated on a straight line basis down to zero by the end of its life. The firm projects their annual cash inflows at $800 per year and annual cash outflows at 280 per year. Assuming the tax rate of 34%, determine the firm's cash flow next year. $
Yak Yarn Consolidated purchased a new spinning machine for $19,979. It is estimated that the machine will have annual e...
Yak Yarn Consolidated purchased a new spinning machine for $19,979. It is estimated that the machine will have annual expenses of $4,666, with a salvage value of $6,147 when it is replaced in 5 years. It will provide a benefit of $4,725 per year in saved utilities and labor. Assume an interest rate of 2% compounded annually. What is the present worth of this machine?
The Sisyphean Corporation is considering investing in a new cane manufacturing machine that has an estimated...
The Sisyphean Corporation is considering investing in a new cane manufacturing machine that has an estimated life of three years. The cost of the machine is $30,000 and the machine will be depreciated straight line over its threeminus−year life to a residual value of $0. The cane manufacturing machine will result in sales of 2000 canes in year 1. Sales are estimated to grow by 10% per year each year through year three. The price per cane that Sisyphean will...
6, A firm has invested $800 in a new machine that is expected to generate cash...
6, A firm has invested $800 in a new machine that is expected to generate cash flows over the next 4 years. The machine will be depreciated on a straight line basis down to zero by the end of its life. The firm projects their annual cash inflows at $650 per year and annual cash outflows at 280 per year. Assuming the tax rate of 33%, determine the firm's cash flow next year. $_____ 7, A distributor of computer software...
Problem 11-7 (algorithmic) Question Help A company is considering buying a CNC machine. In today's dollars,...
Problem 11-7 (algorithmic) Question Help A company is considering buying a CNC machine. In today's dollars, it is estimated that the maintenance costs for the machine (paid at the end of each year) will be $29,000, $31.000, $32,000, $33,000, and $36,000 for years 1 to 5, respectively. The general inflation rate() is estimated to be 4% per year, and the company will receive 16% return (interest) per year on its invested funds during the inflationary period. The company wants to...
3. Suppose that real GDP in 2017 was $250 million (measured in base year dollars) and...
3. Suppose that real GDP in 2017 was $250 million (measured in base year dollars) and nominal GDP in 2017 was $375 million (measured in current year dollars) in a small country. The money supply during this period was $125 million. a. Suppose that the money supply increased to $130 million in 2018. According to the Quantity Theory, what will the price level be in 2018 as a result of the money supply increase, all else equal? Also, what will...
Assume Corbins ,Inc purchased an automated machine 5 years ago that had an estimated economic life of 10 years. The Automated Machines originally cost $300,000 and has been fully depreciated, leaving...
Assume Corbins ,Inc purchased an automated machine 5 years ago that had an estimated economic life of 10 years. The Automated Machines originally cost $300,000 and has been fully depreciated, leaving a current book value of $0. The actual market value of this drill press is $80,000. The company is considering replacing the automated machine with a new one costing $380,000. Shipping and installation charges will add an additional $10,000 to the cost. Corbins., Inc also has paid a sunk...
Engineering Economics
4 The capital investment for a new machine is $900,000. The current estimated annual expense is $100,000.This expense is estimated to increase at the rate of 6 per year. Assume that f (inflation rate) -5, N-5 years, Mv at the end of year seven is 10% of the capital investment, and the after-tax MARR (inflation-free) is 10 per year. (259) .1 What uniform annual revenue would the machine need to generate to break even? 4.2 If the machine...
The price of one item is $ 600 in year 4 and the general price inflation rate was expected to be 5%per year. What is its estimated value in year 2 dollars (2) Please only fill in the number of the calculated result and round to the nearest Integer
A company is considering buying a CNC machine. In today's dollars, it is estimated that the maintenance costs for the machine (paid at the end of each year) will be $33,000, $35,000, $38,000, $39,000, and $42,000 for years 1 to 5, respectively. The general inflation rate (T) is estimated to be 6% per year, and the company will receive 14% return (interest) per year on its invested funds during the inflationary period. The company wants to pay for maintenance expenses...
Yak Yarn Consolidated purchased a new spinning machine for $19,979. It is estimated that the machine will have annual expenses of $4,666, with a salvage value of $6,147 when it is replaced in 5 years. It will provide a benefit of $4,725 per year in saved utilities and labor. Assume an interest rate of 2% compounded annually. What is the present worth of this machine?
Problem 11-7 (algorithmic) Question Help A company is considering buying a CNC machine. In today's dollars, it is estimated that the maintenance costs for the machine (paid at the end of each year) will be $29,000, $31.000, $32,000, $33,000, and $36,000 for years 1 to 5, respectively. The general inflation rate() is estimated to be 4% per year, and the company will receive 16% return (interest) per year on its invested funds during the inflationary period. The company wants to...
3. Suppose that real GDP in 2017 was $250 million (measured in base year dollars) and nominal GDP in 2017 was $375 million (measured in current year dollars) in a small country. The money supply during this period was $125 million. a. Suppose that the money supply increased to $130 million in 2018. According to the Quantity Theory, what will the price level be in 2018 as a result of the money supply increase, all else equal? Also, what will...
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