Using Microsoft Excel
A | B | |
Initial Cost of Pipeline and Pump | 150,000 | 200,000 |
AOC | 1000 | 1500 |
Salvage Value | 5000 | 7000 |
Useful Life | 5 years | |
Interest | 7% |
Using Microsoft Excel A purchasing agent is considering the purchase of new equipment for the mailroom....
Question 1 A. Using Ms Excel, find out which alternative should be selected on the basis of the Present Worth method, if the rate of interest is 8% per year. • Alternative 1: Initial purchase price = $2500000, Annual operating cost $45000 at the end of 1st year and increasing by $3000 in the subsequent years till the end of useful life, Annual income = $120000, Salvage value = $550000, Useful life = 3 years. Alternative 2: Initial purchase price...
4. Using prese sing present worth analysis, choose the best alternative from the information below, assuming interest is 12%, and a 15 year useful life. Alternative Initial Cost Uniform Net Annual Benefit $75,000 $35,000 $55,000 Salvage Value $7,500 $ 6,000 $10,000 $20,000 $15,000 $40,000 NPWar NPWb= NPWC Best Alter 2. ཆར་བར་ དམ་ Solve for EUAW (A) i = 8% 1000 1500 2,000 2500
Analysis of cost for various pipe sizes is as follows:
Select the best alternative below using Present Worth analysis.
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Installed Cost of Pipeline and Pump Cost per hour for pumping А. 22000 1.2 B 23000 0.65 C 25000 0.5 D 30000 0.4 The pump will operate 2000 hours per year Interest is 7%/year and Life is infinite
Accrual Accounting Rate of Return and NPV Sally's Bar is considering purchasing a new cooler. Purchase price is $300,000. An additional $25,000 will be spent on working capital, which will be recovered at the end of the life of the cooler. The cooler is expected to last for three years, with a salvage value of $30,000 at the end of it's useful life. The machine is expected to create $125,000, $150,000 and $175,000 in cash savings in each of the...
Kermit is considering purchasing a new computer system. The purchase price is $148645. Kermit will borrow one-fourth of the purchase price from a bank at 10 percent per year compounded annually. The loan is to be repaid using equal annual payments over a 3 year period. The computer system is expected to last 5 years and has a salvage value of $8162 at that time. Over the 5-year period, Kermit expects to pay a technician $20,000 per year to maintain...
Michener Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $200,000 and has an estimated useful life of eight years with zero salvage value. Management estimates that the new bottling machine will provide net annual cash flows of $37,500. Management also believes that the new machine will save the company money because it is expected to be more reliable than other machines, and thus will reduce downtime. Assume a discount rate of 11%. Calculate the...
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For example.. I want it looks like that
6.38 A WiMAX wireless network integrated with a satellite network can provide connectivity to any location within 10 km of the base station. The number of sectors per base station can be varied to increase the bandwidth. An independent cable operator is considering the three bandwidth alter- natives shown below (monetary values in $1000 units). Assume a life of 20 years and a MARR of 25% per year to determine...
Z Instructions Question 1 10 pts Two industrial robots are being considered for automation purposes. Using a present worth analysis at 10% interest per year, determine the best alternative Robot X Robot Y 95,000 5000 in year 1 increasing by $1,000 per year 4,000 First Cost S$ 5,000 Annual Cost$/year 9,000 Salvage value, Useful Life, years Upload Choose a Filte 20 3
Kermit is considering purchasing a new computer system. The purchase price is $104403. Kermit will borrow one-fourth of the purchase price from a bank at 10 percent per year compounded annually. The loan is to be repaid using equal annual payments over a 3-year period. The computer system is expected to last 5 years and has a salvage value of $6409 at that time. Over the 5-year period, Kermit expects to pay a technician $20,000 per year to maintain the...
Kermit is considering purchasing a new computer system. The purchase price is $128663. Kermit will borrow one-fourth of the purchase price from a bank at 10 percent per year compounded annually. The loan is to be repaid using equal annual payments over a 3-year period. The computer system is expected to last 5 years and has a salvage value of $6897 at that time. Over the 5-year period, Kermit expects to pay a technician $20,000 per year to maintain the...