Yes we purchase the machine , because the Net Present value is Possitive
Net Present Value = 0
that means, the investment earns the same rate of return as the required rate (investment earns same return)
Net Present Value = + Positive
indicate that the investment earns higher rate of return than the required rate (investment earns more return)
Net Present Value = - Negative
Indicate that the investment earns lesser rate of return than the required rate (investment earns less return)
NPV = + , than accept the project
NPV = - , than reject the project
Question 1 3 pts A machine costs $98,000 to purchase and will provide $20,000 a year...
solve by hand A machine costs $1,000,000 to purchase and will produce $311,750 per year in additional revenue. Additionally, labor and maintenance costs will be $120,250 per year. The company plans to use the machine for 10 years and then sell it for scrap for which it expects to receive $24,300. MARR interest rate is 12.0%. Compute the net present worth to determine whether or not the machine should be purchased?
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...
Question 14 5 pts RHPS Company is considering the purchase of a new machine. The new machine falls into the MACRS 3-year class, has an estimated life of 3 years, it costs $100,000 and RHPS plans to sell the machine at the end of the third year for $20,000. The new machine is expected to generate new sales of $30,000 per year and added costs of $10,000 per year. In addition, the company will need to decrease inventory by $10,000...
Question 12 5 pts Elsinore Tech is considering the purchase of a new brewing machine to replace an existing one. The old machine was purchases 3 years ago at a cost of $30,000, and was being depreciated using straight-line depreciation over six years to a SV of 0. The current market value of the old machine is $20,000. The new machine falls into the MACRS 5-year class, has an estimated life of 5 years, it costs $100,000, and Tech plans...
Use excel 10 pts DQuestion 1 Kohler is considering a molding machine for its production expansion project. The company has a MARR-12%, DetermineThe cost data are compiled as Machine X Initial Cost,$ 160,000 Annual Operating 4500 Cost, $ Annual Benefit, $90,000 Salvage Value, $ 20,000 Life 10 years Using the Rate of Return Analysis, what is your recommendation? Please submit your excel file named as Lastname Q7.xlsx) Upload Choose a File
Choose a File Question 2 5 pts • For the following compounds... 1. Provide molecular formula 2. Provide IUPAC name 3. Show addition of hydrogen reaction, draw structures of the products and provide IUPAC name for the products. a) b) O I • Upload your answer for this assignment. Upload Choose file
Question 14 5 pts Elsinore Tech is considering the purchase of a new brewing machine to replace an existing one. The old machine was purchases 3 years ago at a cost of $30,000, and was being depreciated using straight-line depreciation over six years to a SV of O. The current market value of the old machine is $20,000. The new machine falls into the MACRS 5-year class, has an estimated life of 5 years, it costs $100,000, and Tech plans...
20 pts Question 3 Design a two's complement circuit using inverters and 1-bit Full Adders. Perform the two's complement of 1210 with your circuit and provide your answer in base 10 and base 2 Upload Choose a File 20 pts Question 3 Design a two's complement circuit using inverters and 1-bit Full Adders. Perform the two's complement of 1210 with your circuit and provide your answer in base 10 and base 2 Upload Choose a File
Salalah Mills Ltd. purchases machinery which costs RO 20,000. The useful life of the machine is 9 years and the annual rate of depreciation is 6% per annum, depreciation being calculated on WDV method. After 9 years, the existing machine has to be replaced by a new one which will cost 250% more than the book value of the existing machine at that time. a) If company sells existing machine at scrap value, What is the extra amount the company...
Question 8 25 pts The initial cost of a machine is $10,000. The selling company has to maintain the machine for the next years, and the maintenance cost for years are as below and paid at the year. It increases every year because the machine gets old every year. What is the net investment cost of the machine including the maintenance cost for the 7 years? Nominal interest rate 9% [SUBMIT/UPLOAD YOUR WORK Draw the cash flow diagram, too. Year...