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solve this one with capital investment 400000 plz
Your company is considering investing in a new...
A company is considering two investment alternatives. Alternative A is a new machine that costs $50,000...
A company is considering two investment alternatives. Alternative A is a new machine that costs $50,000 and will last for ten years with no salvage value. It will save the company $5479 per year and the savings will increase by $2050 each year. Alternative B is a is a machine that will cost $75,000 and last 10 years. The salvage value at the end of 10 years is $25,000. It will save $11352 per year. Find the present worth of...
A company is considering two investment alternatives Alternative A is a new machine that costs $50,000...
A company is considering two investment alternatives Alternative A is a new machine that costs $50,000 and will last for ten years with no salvage value. It will save the company $9445 per year. Alternative B is a is a machine that will cost $75,000 and last 10 years. The salvage value at the end of 10 years is $25,000. It will save $12390 per year Find the Annual worth of each alternative if the company as a MARR of...
2.11 A company is considering investing in a new machine for its production line. Management has...
2.11 A company is considering investing in a new machine for its production line. Management has specified that $150,000 is available to invest in the machine. This money will be invested in a fund that earns 8% annually, compounded quarterly, to pay for the machine, its operation cost, and main- tenance costs. A machine has been identified that has a uniform annual operation cost of $1250. The maintenance cost of the machine is zero in the first year, $200 in...
Your company is considering a $500,000 investment, today, in a new production facility. Production would commence...
Your company is considering a $500,000 investment, today, in a new production facility. Production would commence two years from today and initial revenues would be realized at the end of the first year of production. Revenues are estimated to be $300,000 for the first production year, but are expected to fall $30,000 each year thereafter because of a forecasted decline in demand. Meanwhile, operating expenses are incurred at the beginning of each production year and are estimated to be $80,000...
Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
Masters Machine Shop is considering a four-year project to
improve its production efficiency. Buying a new machine press for
$796800 is estimated to result in $265600 in annual pretax cost
savings. The press falls in the MACRS (MACRS Table) five-year class
and it will have a salvage value at the end of the project of
$116200. The press also requires an initial investment in spare
parts inventory of $33200, along with an additional $4980 in
inventory for each succeeding year...
My Not A company is considering two investment alternatives. Alternative A is a new machine that...
My Not A company is considering two investment alternatives. Alternative A is a new machine that costs $50,000 and will last for ten years with no salvage value. It will save the company $8445 per year. Alternative B is a is a machine that will cost $75,000 and last 10 years. The salvage value at the end of 10 years is $25,000. It will save $11743 per year Find the Annual worth of each alternative if the company as a...
You are considering investing $72,000 in new equipment. You estimate that the net cash flows will...
You are considering investing $72,000 in new equipment. You estimate that the net cash flows will be $11,00 during the first year, but will increase by $1,700 per year the next year and each year thereafter. The equipment is estimated to have a 7-year service life and a net salvage value of $6,000 at that time. Assume an interest rate of 9%. (a) Determine the annual capital cost (ownership cost) for the equipment. The annual capital cost is $______. (Round...
Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $400,000 is estimated to result in $154,000 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $54,000. The press also requires an initial investment in spare parts inventory of $23,000, along with an additional $3,250 in inventory for each succeeding year of the...
Monterey company is considering investing in two new vans that are expected to generate combined cash...
Monterey company is considering investing in two new vans that
are expected to generate combined cash inflows of $30,000 per year.
The vans combined purchase price is $93,000. The expected life and
salvage value of each or four years and $23,000, respectively.
Monterey has an average cost of capital of 7%.
a. calculate the net present value of the investment
opportunity.
b. indicate whether the investment opportunity is expected to
earn a return that is above or below the cost...
CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $399,000 is estimated to result in $146,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Table) and it will have a salvage value at the end of the project of $47,000. The press also requires an initial investment in spare parts inventory of $15,200, along with an additional $2,200 in inventory for each succeeding year...
A company is considering two investment alternatives Alternative A is a new machine that costs $50,000 and will last for ten years with no salvage value. It will save the company $9445 per year. Alternative B is a is a machine that will cost $75,000 and last 10 years. The salvage value at the end of 10 years is $25,000. It will save $12390 per year Find the Annual worth of each alternative if the company as a MARR of...
2.11 A company is considering investing in a new machine for its production line. Management has specified that $150,000 is available to invest in the machine. This money will be invested in a fund that earns 8% annually, compounded quarterly, to pay for the machine, its operation cost, and main- tenance costs. A machine has been identified that has a uniform annual operation cost of $1250. The maintenance cost of the machine is zero in the first year, $200 in...
Your company is considering a $500,000 investment, today, in a new production facility. Production would commence two years from today and initial revenues would be realized at the end of the first year of production. Revenues are estimated to be $300,000 for the first production year, but are expected to fall $30,000 each year thereafter because of a forecasted decline in demand. Meanwhile, operating expenses are incurred at the beginning of each production year and are estimated to be $80,000...
Masters Machine Shop is considering a four-year project to
improve its production efficiency. Buying a new machine press for
$796800 is estimated to result in $265600 in annual pretax cost
savings. The press falls in the MACRS (MACRS Table) five-year class
and it will have a salvage value at the end of the project of
$116200. The press also requires an initial investment in spare
parts inventory of $33200, along with an additional $4980 in
inventory for each succeeding year...
My Not A company is considering two investment alternatives. Alternative A is a new machine that costs $50,000 and will last for ten years with no salvage value. It will save the company $8445 per year. Alternative B is a is a machine that will cost $75,000 and last 10 years. The salvage value at the end of 10 years is $25,000. It will save $11743 per year Find the Annual worth of each alternative if the company as a...
Monterey company is considering investing in two new vans that
are expected to generate combined cash inflows of $30,000 per year.
The vans combined purchase price is $93,000. The expected life and
salvage value of each or four years and $23,000, respectively.
Monterey has an average cost of capital of 7%.
a. calculate the net present value of the investment
opportunity.
b. indicate whether the investment opportunity is expected to
earn a return that is above or below the cost...
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