Homework Answers
If cost are also equally splitted into annuity of 80 then the result can be achieved
Hence FV of cost in year 1 and 2 should be 200, if 80 is coming from year 2 then year 1 FV should be 200-80=120 and cashflow outflow of year 1 should be 80.
Hence 120=80*(1+r)
Or, 1+r=120/80
Or 1+r=1.5
Or, r=0.5
Hence rate should be 50%
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only question 2 please
Question 2 (6 pts): For the following cashflow diagram, compute the interest...
Question 1 0.15 pts Of the following equations, which will allow you to solve for the...
Question 1 0.15 pts Of the following equations, which will allow you to solve for the ROR of this cash flow? Year Cash Flow $-15,000 O 1 $2,500 2 $5,000 $7,500 4 $10,000 15,000 2500(P/A, i, 5) +2500 (P/G, i, 5) 0 15,000 2500(P/A, i, 5)+2500 (P/G, i, 5) 15,000 2500(P/G, i*, 5) 0 150002500(P/G, i, 5) 15,000 2500(P/A, i", 4) +2500 (P/G, i", 4) 0 15,000 2500(P/A, i, 4)+2500 (P/G, i, 4) = Ln Question 2 0.3 pts Petra's...
5.(20 pts) A special power tool for plastic products is classified $6,500, has a salvage value...
5.(20 pts) A special power tool for plastic products is classified $6,500, has a salvage value of $800 when sold at the end of 5 years, uniform annual end-of-ycar benefits (before tax) of $3,500 per year, and uniform annual operating and maintenance costs (before tax) of $1,200 per year. Compute the after-tax present worth (for an MARR of 10% ) , based on MACRS depreciation and a 34% corporate income tax rate. (MACRS percentages for a three-year property are 33.33%,...
Question 1 5 pts Draw the net cash flow diagram associated with the purchase, operation, and...
Question 1 5 pts Draw the net cash flow diagram associated with the purchase, operation, and disposition of a synthetic rubber-blending machine. At t 0 (now), purchase blender for $62,000. Att 0, install at cost of $8,000. At t 1, savings generated by blender is $10,000. Att 1, maintenance costs are $800. Att 2, savings generated by blender are $12,000. Att - 2, maintenance costs are $1,200. At t 3, savings generated by blender is $18,000. Att 3, maintenance costs...
No excel. 14. (4 pts) A special power tool for plastic products costs $400, has a...
No excel.
14. (4 pts) A special power tool for plastic products costs $400, has a four-year useful life, no salvage value, and uniform annual end-of-year benefits (before tax) of $200 per year. Compute the after-tax present worth (for an MARR of 10%), based on MACRS depreciation and a 21% corporate income tax rate. (MACRS percentages for a three-year property are 33.33%, 44.45%, 14.81%, and 7.41%, for years 1, 2, 3, and 4, respectively.)
5.(20 pts) A special power tool for plastic products is classified $6,500, has a salvage value...
5.(20 pts) A special power tool for plastic products is classified $6,500, has a salvage value of $800 when sold at the end of 5 years, uniform annual end-of-ycar benefits (before tax) of $3,500 per year, and uniform annual operating and maintenance costs (before tax) of $1,200 per year. Compute the after-tax present worth (for an MARR of 10% ) , based on MACRS depreciation and a 34% corporate income tax rate. (MACRS percentages for a three-year property are 33.33%,...
Question 2 Cecil's Manufacturing is considering producing a new product. The sales price would be $9.75...
Question 2 Cecil's Manufacturing is considering producing a new product. The sales price would be $9.75 per unit. The cost of the equipment is $115,000. Operating and maintenance costs are expected to be $3,100 annually. Based on a 7-year planning horizon and a MARR of 12%, determine the number of units that must be sold annually to achieve breakeven. units Carry all interim calculations to 5 decimal places and then round your final answer up to the nearest unit. The...
Question 2: Octavia Bakery is planning to purchase one of two ovens. The expected cash flows...
Question 2: Octavia Bakery is planning to purchase one of two ovens. The expected cash flows for each oven are shown below. MARR is 8 percent/year. Initial Investment Estimated Life End of Life Salvage Annual Income Annual Expense Model 127B $50,000 10 $10,000 $19,400 $10,000 Model 334A $80,000 5 $0 $26,000 $6,000 Based on a 10-vear planning horizon. what is the present worth of each investment? Which oven should Octavia purchase? Hint: - 245$, and 17707$
The management of Brawn Engineering is considering three alternatives to satisfy an OSHA requirement for safety...
The management of Brawn Engineering is considering three alternatives to satisfy an OSHA requirement for safety gates in the machine shop. Each gate will completely satisfy the requirement, so no combinations need to be considered. The first costs, operating costs, and salvage values over a 5-year planning horizon are shown below. End of Year Gate 1 Gate 2 Gate 3 0 -$19,000 -$24,000 -$15,000 -$6,500 -$5,600 -$4,000 N m -$6,500 -$5,600 -$6,500 -$5,600 -$6,500 -$5,600 -$6,500 + $0-$5,600 + $2,000...
2. [Theory] For the following questions, the present is Year 0, and the relevant interest rate...
2. [Theory] For the following questions, the present is Year 0, and the relevant interest rate is 10% per year. Round your answers to the nearest cent. Show your work, or you will not receive marks. There’s a formula sheet at the end of the assignment. a. (2 marks) Use (P/F,i,N) to find the present value (Year 0 value) of $1,000 in Year 10. Present Value: $ _______________ b. (4 marks) Maintenance costs for a machine are $100 in Year...
QUESTION 6 Data for two mutually exclusive alternatives are given below. Alternatives B $4,000 $800 А...
QUESTION 6 Data for two mutually exclusive alternatives are given below. Alternatives B $4,000 $800 А Initial Cost $5,000 Annual Benefits (beginning at end of $1,500 year 1) Annual Costs (beginning at end of year $500 1) Salvage Value $500 Useful Life (years) 5 $200 $0 10 Compute the net present worth for each alternative and choose the better alternative. MARR = 8%
Question 1 0.15 pts Of the following equations, which will allow you to solve for the ROR of this cash flow? Year Cash Flow $-15,000 O 1 $2,500 2 $5,000 $7,500 4 $10,000 15,000 2500(P/A, i, 5) +2500 (P/G, i, 5) 0 15,000 2500(P/A, i, 5)+2500 (P/G, i, 5) 15,000 2500(P/G, i*, 5) 0 150002500(P/G, i, 5) 15,000 2500(P/A, i", 4) +2500 (P/G, i", 4) 0 15,000 2500(P/A, i, 4)+2500 (P/G, i, 4) = Ln Question 2 0.3 pts Petra's...
5.(20 pts) A special power tool for plastic products is classified $6,500, has a salvage value of $800 when sold at the end of 5 years, uniform annual end-of-ycar benefits (before tax) of $3,500 per year, and uniform annual operating and maintenance costs (before tax) of $1,200 per year. Compute the after-tax present worth (for an MARR of 10% ) , based on MACRS depreciation and a 34% corporate income tax rate. (MACRS percentages for a three-year property are 33.33%,...
Question 1 5 pts Draw the net cash flow diagram associated with the purchase, operation, and disposition of a synthetic rubber-blending machine. At t 0 (now), purchase blender for $62,000. Att 0, install at cost of $8,000. At t 1, savings generated by blender is $10,000. Att 1, maintenance costs are $800. Att 2, savings generated by blender are $12,000. Att - 2, maintenance costs are $1,200. At t 3, savings generated by blender is $18,000. Att 3, maintenance costs...
No excel.
14. (4 pts) A special power tool for plastic products costs $400, has a four-year useful life, no salvage value, and uniform annual end-of-year benefits (before tax) of $200 per year. Compute the after-tax present worth (for an MARR of 10%), based on MACRS depreciation and a 21% corporate income tax rate. (MACRS percentages for a three-year property are 33.33%, 44.45%, 14.81%, and 7.41%, for years 1, 2, 3, and 4, respectively.)
5.(20 pts) A special power tool for plastic products is classified $6,500, has a salvage value of $800 when sold at the end of 5 years, uniform annual end-of-ycar benefits (before tax) of $3,500 per year, and uniform annual operating and maintenance costs (before tax) of $1,200 per year. Compute the after-tax present worth (for an MARR of 10% ) , based on MACRS depreciation and a 34% corporate income tax rate. (MACRS percentages for a three-year property are 33.33%,...
Question 2 Cecil's Manufacturing is considering producing a new product. The sales price would be $9.75 per unit. The cost of the equipment is $115,000. Operating and maintenance costs are expected to be $3,100 annually. Based on a 7-year planning horizon and a MARR of 12%, determine the number of units that must be sold annually to achieve breakeven. units Carry all interim calculations to 5 decimal places and then round your final answer up to the nearest unit. The...
Question 2: Octavia Bakery is planning to purchase one of two ovens. The expected cash flows for each oven are shown below. MARR is 8 percent/year. Initial Investment Estimated Life End of Life Salvage Annual Income Annual Expense Model 127B $50,000 10 $10,000 $19,400 $10,000 Model 334A $80,000 5 $0 $26,000 $6,000 Based on a 10-vear planning horizon. what is the present worth of each investment? Which oven should Octavia purchase? Hint: - 245$, and 17707$
The management of Brawn Engineering is considering three alternatives to satisfy an OSHA requirement for safety gates in the machine shop. Each gate will completely satisfy the requirement, so no combinations need to be considered. The first costs, operating costs, and salvage values over a 5-year planning horizon are shown below. End of Year Gate 1 Gate 2 Gate 3 0 -$19,000 -$24,000 -$15,000 -$6,500 -$5,600 -$4,000 N m -$6,500 -$5,600 -$6,500 -$5,600 -$6,500 -$5,600 -$6,500 + $0-$5,600 + $2,000...
QUESTION 6 Data for two mutually exclusive alternatives are given below. Alternatives B $4,000 $800 А Initial Cost $5,000 Annual Benefits (beginning at end of $1,500 year 1) Annual Costs (beginning at end of year $500 1) Salvage Value $500 Useful Life (years) 5 $200 $0 10 Compute the net present worth for each alternative and choose the better alternative. MARR = 8%
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