A new grape press was purchased for $150,000. The annual operating and maintenance costs for the...
A new grape press was purchased for $150,000. The annual operating and maintenance costs for the press are estimated to be $4,000 the first year. These costs are expected to increase by $5,000 each year after the first year. The market value is expected to decrease by $25,000 each year to a value of zero. (Hint: treat the market value as a salvage value.) Installation and removal of a press each cost $3,500. Using an interest rate of 9%, determine the economic life of the press. (13-13)
Homework Answers
Given,
First cost = $150000
Interest = 9%
Calculation of economic life:
Hence economic life of press is 9 years.
Add Answer to:
A new grape press was purchased for $150,000. The annual
operating and maintenance costs for the...
please do this in excel and show all the functions. A new grape press was purchased...
please do this in excel and show all the functions.
A new grape press was purchased for $150,000. The annual operating and maintenance costs for the press are estimated to be $4,000 the first year. These costs are expected to increase by $5,000 each year after the first year. The market value is expected to decrease by $25,000 each year to a value of zero. (Hint: treat the market value as a salvage value.) Installation and removal of a press...
Question 4 A special-purpose machine is to be purchased at a cost of $15,000. The following table shows the expected annual operating and maintenance cost and the salvage values for each year of the...
Question 4 A special-purpose machine is to be purchased at a cost of $15,000. The following table shows the expected annual operating and maintenance cost and the salvage values for each year of the machine's service: Year of Service O&M Costs $2,500 3,200 5,300 6,500 7.800 Market Value $12,800 8,100 5,200 3.500 0 If the interest rate is 10%, what is the economic service life for this machine?
Question 4 A special-purpose machine is to be purchased at a cost...
The purchase price of a new printing press is $16,000 with $3,800 in installation cost and...
The purchase price of a new printing press is $16,000 with $3,800 in installation cost and would have a salvage value that can be estimated using a declining balance approach with d=21%. Operating and maintenance costs will be $4,220 this year and will increase by $85 per year. If the company's MARR is 10%, what is the EAC if the press is kept for 6 years? Use a positive sign convension for your answer, i.e EAC will be >0 and...
A new manufacturing plant costs $5,500,000 to build. Operating and maintenance costs are estimated to be...
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1. A drill press was purchased 4 years ago for $40,000. Its estimated salvage value after...
1. A drill press was purchased 4 years ago for $40,000. Its estimated salvage value after 7 years was $5,000. The press can b sold for $15,000 today, or for $12000, $9000, or $6000 at the ends of each of the next 3 years. The annual operating and maintenance cost for the next 3 years will be $2700 for this year and then will increase by $800 per year. Using a MARR of 10%, what is the marginal cost for...
1. Consider a palletizer at a bottling plant that has a first cost of $150,000, operating...
1. Consider a palletizer at a bottling plant that has a first cost of $150,000, operating and maintenance costs of $17,500 per year, and an estimated net salvage value of $25,000 at the end of 30 years. Assume an interest rate of 8 percent. What is the annual equivalent cost of the investment if the planning horizon is 30 years? a. $29,760 c. $31,980 b. $30,600 d. $35,130 5 pointe-cha-
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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...
Adams Inc. purchased a new punch press on January 1, 2017. The company paid $900,000 for...
Adams Inc. purchased a new punch press on January 1, 2017. The company paid $900,000 for the equipment, and also paid ABC Transport $37,000 to ship the press to its facility. Once the press arrived, Adams incurred expenditures of $15,000 for installation and $3,500 to test that the equipment was operating properly. The company also estimates that over the equipment's life it will require additional power, which will cause utility costs to increase $80,000. Adams expects that the press will...
U 15% PowrUp Investment Annual and salvage maintenance Repair -300 NGOM 300 OWN 300 Lloyd's Investment...
U 15% PowrUp Investment Annual and salvage maintenance Repair -300 NGOM 300 OWN 300 Lloyd's Investment Annual Repair savings and salvage maintenance Savings 36,000 -800 25,000 35,000 -800 25,000 35,000 -800 25,000 300 35,000 -800 25,000 35,000 -800 25,000 -300 35,000 2.000 -800 25,000 -300 35,000 -300 35,000 -300 35,000 15 -300 35,000 16 -300 35,000 17 AW element -6,642 -800 25,000 -7,025 -300 35,000 18 Total AW $ 17,558 $ 27,675 Figure 6-9 Annual worth analysis of surge protector...
please do this in excel and show all the functions.
A new grape press was purchased for $150,000. The annual operating and maintenance costs for the press are estimated to be $4,000 the first year. These costs are expected to increase by $5,000 each year after the first year. The market value is expected to decrease by $25,000 each year to a value of zero. (Hint: treat the market value as a salvage value.) Installation and removal of a press...
Question 4 A special-purpose machine is to be purchased at a cost of $15,000. The following table shows the expected annual operating and maintenance cost and the salvage values for each year of the machine's service: Year of Service O&M Costs $2,500 3,200 5,300 6,500 7.800 Market Value $12,800 8,100 5,200 3.500 0 If the interest rate is 10%, what is the economic service life for this machine?
Question 4 A special-purpose machine is to be purchased at a cost...
The purchase price of a new printing press is $16,000 with $3,800 in installation cost and would have a salvage value that can be estimated using a declining balance approach with d=21%. Operating and maintenance costs will be $4,220 this year and will increase by $85 per year. If the company's MARR is 10%, what is the EAC if the press is kept for 6 years? Use a positive sign convension for your answer, i.e EAC will be >0 and...
1. A drill press was purchased 4 years ago for $40,000. Its estimated salvage value after 7 years was $5,000. The press can b sold for $15,000 today, or for $12000, $9000, or $6000 at the ends of each of the next 3 years. The annual operating and maintenance cost for the next 3 years will be $2700 for this year and then will increase by $800 per year. Using a MARR of 10%, what is the marginal cost for...
1. Consider a palletizer at a bottling plant that has a first cost of $150,000, operating and maintenance costs of $17,500 per year, and an estimated net salvage value of $25,000 at the end of 30 years. Assume an interest rate of 8 percent. What is the annual equivalent cost of the investment if the planning horizon is 30 years? a. $29,760 c. $31,980 b. $30,600 d. $35,130 5 pointe-cha-
Adams Inc. purchased a new punch press on January 1, 2017. The company paid $900,000 for the equipment, and also paid ABC Transport $37,000 to ship the press to its facility. Once the press arrived, Adams incurred expenditures of $15,000 for installation and $3,500 to test that the equipment was operating properly. The company also estimates that over the equipment's life it will require additional power, which will cause utility costs to increase $80,000. Adams expects that the press will...
U 15% PowrUp Investment Annual and salvage maintenance Repair -300 NGOM 300 OWN 300 Lloyd's Investment Annual Repair savings and salvage maintenance Savings 36,000 -800 25,000 35,000 -800 25,000 35,000 -800 25,000 300 35,000 -800 25,000 35,000 -800 25,000 -300 35,000 2.000 -800 25,000 -300 35,000 -300 35,000 -300 35,000 15 -300 35,000 16 -300 35,000 17 AW element -6,642 -800 25,000 -7,025 -300 35,000 18 Total AW $ 17,558 $ 27,675 Figure 6-9 Annual worth analysis of surge protector...
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