Please solve the following problem
First Cost = $43,000
Annual Cost = $8,000/year
Salvage Value = $2,700
Life = 5 years
Desired Rate of Return = 14%
Find: The Capital Recovery value
Round the answer to the nearest thousand.
Please solve the following problem First Cost = $43,000 Annual Cost = $8,000/year Salvage Value =...
Date Table 2 (MARR-10%) First cost, S Annual cost, S per year Salvage value, S Life, years -40,000 -25,000 20,000 10 -75,000 15,000 7,000 a) Conduct PW analysis b) Conduct AW analysis c) Calculate capitalized cost for N d) Calculate capital recovery for MN Date Table 2 (MARR-10%) First cost, S Annual cost, S per year Salvage value, S Life, years -40,000 -25,000 20,000 10 -75,000 15,000 7,000 a) Conduct PW analysis b) Conduct AW analysis c) Calculate capitalized cost...
I want solve it, by this way first cost , annual cost, salvage value , and i% law : AW AirExpress bought a used Boeing 757 plane 5 years ago for $35,000,000. At the time the plane was bought, it was estimated that it would have a service life of 10 years and its salvage value at the end of its service life would be $10,000,000. AirExpress's CFO has recently proposed to replace the old plane with a modern Boeing...
Problem 06.004 Annual Worth and Capital Recovery Calculations A delivery car had a first cost of $32,000, an annual operating cost of $13,000, and an estimated $7000 salvage value after its 6-year life. Due to an economic slowdown, the car will be retained for only 3 years and must be sold now as a used vehicle. At an interest rate of 8% per year, what must the market value of the used vehicle be in order for its AW value...
11.14 A piece of onboard equipment has a first cost of $600,000, an annual cost of $92,000, and a salvage value that decreases to zero by $150,000 each year of the equipment's maximum useful life of 5 years. Assume the company's MARR is 10% per year. (a) Determine the ESL by hand. (b) Use a spreadsheet with a graph indicating the capital recovery, AOC, and total AW per year to determine the ESL
A delivery car had a first cost of $32,000, an annual operating cost of $15,000, and an estimated $6000 salvage value after its 6-year life. Due to an economic slowdown, the car will be retained for only 2 years and must be sold now as a used vehicle. At an interest rate of 11% per year, what must the market value of the used vehicle be in order for its AW value to be the same as the AW if...
What is the capital recovery cost of the following asset? Interest rate = Purchase price = $30.000 Asset life in years = Annual operating costs = $5,000 Salvage value at the end of life = $8,000
5b) A Computer costs $8,000. After 5 years, the salvage or resale value is $1000. Annual maintenance cost of software, hardware and upgrades is $500. Annual benefits are $2000. If the interest rate is 12%, compute the annual worth of the computer system. 2
An asset has the estimated salvage values for various lives, shown in the table below. For each possible life from 1 to 6 by 1, determine the capital e overy cost for MARR of 8% year. EOY NCF Estimated SV $105,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $85,000 $65,000 $55,000 $45,000 $40,000 $37,000 $105,000 Capital recovery cost with 1-year life 210000 Capital recovery cost with 2 years life 50096 Capital recovery cost with 3 years life 45469 Capital recovery cost...
What is the annual worth of a machine with a first cost of $180,000, an annual operating cost of $14,500 per year, no overhaul cost, a salvage value of $16,000, a useful life of 10 years, and a cost rate of 4% per year?
Problem S7.34 Question Help The annual profit from an investment is $20,000 each year for 5 years and the cost of investment is $70,000 with a salvage value of $50,000. The cost of capital at this risk level is 14% Based on the given information, the net present value of the investment $1(round your response to the nearest whole number).