Homework Answers
CapEx =(PURCHASE PRICE+INSTALLATION PRICE)*SALE TAX
OPTION 1=($735+$600)*8.5%=$1448.475
OPTION 2=($379+$500)*8.5%=$953.715
OPTION 3=($1163+$500)*8.5%=$1804.355
OPTION 4=($1286+$1300)*8.5%=$2805.810
OPTION 5=($898+$1300)*8.5%=$2384.830
NOTE= WE HAVE INCLUDED SALE TAX IN INSTALLTATION COST BECAUSE THERE WERE NO SEPARATE CONTRAT OF IT. IF THERE WAS THEN IT WOULD NOT INCLUDE SALE TAX OF INSTALLATION COST AND INSTALLATION IN CapEx.
Add Answer to:
What is the total CapEx for water heater options 1-5?
Purchase prices for 1-5 are:
1:...
1. Suppose you are going to purchase a new heater for your home. You have a...
1. Suppose you are going to purchase a new heater for your home. You have a choice of an electric heater or a natural gas heater. The cost of the electric heater is $4,000 and the natural gas heater is $6,000. The cost of electricity is $0.10/kwh and the cost of natural gas is $0.50/therm. Assume you use 10,000 kwh of electricity or 1,000 therms each year to heat your home. Each heater is expected to last 25 years. To...
Problem 5. (Decision Tree) company trying to purchase tickets for its employees to participate in a...
Problem 5. (Decision Tree) company trying to purchase tickets for its employees to participate in a business meeting There is a 7% of options, Opt $450 (but $410 only will be refunded, will cost $40 actually) chance that the meeting gets canceled. Delta airline provided two different types ion 1: a non-refundable $400 ticket or Option 2: a refundable ticket that costs Delta prices changes weekly and the company can postpone the purchase of the ticket to the next week....
Please show all your calculations clearly. 1. Assume that the best investment alternative you have earns...
Please show all your calculations clearly. 1. Assume that the best investment alternative you have earns you a return of 10% per year. Suppose you invest $20000 now, what will be the value of your investment after a. One year? b. Two years? C. Three years? d. Ten years? 2. Your grandpa wants to present you with a small apartment on your 30th birthday. The apartment is expected to cost $500,000 then. He wants to invest in a 10 year...
Terminal cash flow- Various lives and sale prices Looner Industries is currently analyzing the purchase of...
Terminal cash flow- Various lives and sale prices Looner Industries is currently analyzing the purchase of a new machine that costs $155.000 and requires 519,700 in installation costs. Purchase of this machine is expected to result in an increase in networking capital of 529,600 to support the expanded level of operations. The firm plans to depreciate the machine under MACRS using a 5-year recovery period (see the table for the applicable depreciation percentages) and expects to sell the machine to...
Terminal cash flow—Various lives and sale prices Looner Industries is currently analyzing the purchase of a...
Terminal cash flow—Various lives and sale prices Looner Industries is currently analyzing the purchase of a new machine that costs $160,000 and requires $20,000 in installation costs. Purchase of this machine is expected to result in an increase in net working capital of $30,000 to support the expanded level of operations. The firm plans to depreciate the machine under MACRS using a 5-year recovery period (see the table for the applicable depreciation percentages) and expects to sell the machine to...
Chap 12- Handout 1 12.2 Analysis of an Expansion Project Fxed Asset Purchase + Investment in...
Chap 12- Handout 1 12.2 Analysis of an Expansion Project Fxed Asset Purchase + Investment in NOWC SALES COGS DEP EBIT SALES COGS DEP SALES Opportunity Cost Total Initial Outiay NOPAT-EBIT NOPAT . EBIT(1M NOPAT-EBTan NOPAT DEP OCF NOPAT + DEP OCF NOPAT + DEP OCF Cthr OCF Recoup NOwc +ATSV Total Teminal CF FCF Timeline Terminal Year FCFs Total Terminal CF FCFo Total initial 0. You are to evaluate an expansion project for your firm. Last year, the firm...
On January 1, 2017, Ranger Manufacturing Company purchased equipment that makes sustainable water bottles. The purchase...
On January 1, 2017, Ranger Manufacturing Company purchased equipment that makes sustainable water bottles. The purchase price of the equipment was $300,000. In addition, Ranger paid $24,000 in sales tax, $1,000 in freight costs to have the equipment delivered, $2,000 for installation and testing, and $1,000 for an annual insurance policy to insure against potential casualty losses. The equipment is expected to have a 7-year useful life and salvage value of $40,000. Ranger uses the STRAIGHT LINE method of depreciation....
In June 2008, when gasoline prices were at an all-time high (more than $3.81 per gallon),...
In June 2008, when gasoline prices were at an all-time high (more than $3.81 per gallon), Chrysler Motor Company promoted its Jeep vehicle with the offer of either $4,250 off the price of the vehicle or the guarantee that the buyer would not pay more than $2.75 per gallon of gas for the next 3 years (the details of the guarantee could vary by dealer). Required: 1. Assume that the Jeep vehicle you are interested in gets 15 mpg combined...
Question 5 Which of the following is a taxable benefit? Question 5 options: 1) Subsidized meals...
Question 5 Which of the following is a taxable benefit? Question 5 options: 1) Subsidized meals offered to all employees of the company assuming the price is approximately equal to the cost. 2) Payment of the tuition for an employee completing a degree that will benefit the employer. 3) A 20% discount on the cost of a newly constructed house. 4) A Christmas gift to an employee from the employer valued at $450. Question 6 Which of the following statements...
5) Mandy Manufacturing purchased a machine on August 1, 2014, and it was installed and ready...
5) Mandy Manufacturing purchased a machine on August 1, 2014, and it was installed and ready to run on January 1, 2015. The following costs were incurred in the purchase and installation of the machine. Invoice price $ 1,300,000 Freight costs 7.000 Purchase discount 2.500 Installation costs 66,000 Electrical and power connections 32,000 Repairs to correct damage incurred during uncrating 12.000 Adjustment costs 36,000 Spare parts for future use 25,000 Provincial sales tas 91.000 Fines incurred during the transport and...
Problem 5. (Decision Tree) company trying to purchase tickets for its employees to participate in a business meeting There is a 7% of options, Opt $450 (but $410 only will be refunded, will cost $40 actually) chance that the meeting gets canceled. Delta airline provided two different types ion 1: a non-refundable $400 ticket or Option 2: a refundable ticket that costs Delta prices changes weekly and the company can postpone the purchase of the ticket to the next week....
Please show all your calculations clearly. 1. Assume that the best investment alternative you have earns you a return of 10% per year. Suppose you invest $20000 now, what will be the value of your investment after a. One year? b. Two years? C. Three years? d. Ten years? 2. Your grandpa wants to present you with a small apartment on your 30th birthday. The apartment is expected to cost $500,000 then. He wants to invest in a 10 year...
Terminal cash flow- Various lives and sale prices Looner Industries is currently analyzing the purchase of a new machine that costs $155.000 and requires 519,700 in installation costs. Purchase of this machine is expected to result in an increase in networking capital of 529,600 to support the expanded level of operations. The firm plans to depreciate the machine under MACRS using a 5-year recovery period (see the table for the applicable depreciation percentages) and expects to sell the machine to...
Terminal cash flow—Various lives and sale prices Looner Industries is currently analyzing the purchase of a new machine that costs $160,000 and requires $20,000 in installation costs. Purchase of this machine is expected to result in an increase in net working capital of $30,000 to support the expanded level of operations. The firm plans to depreciate the machine under MACRS using a 5-year recovery period (see the table for the applicable depreciation percentages) and expects to sell the machine to...
Chap 12- Handout 1 12.2 Analysis of an Expansion Project Fxed Asset Purchase + Investment in NOWC SALES COGS DEP EBIT SALES COGS DEP SALES Opportunity Cost Total Initial Outiay NOPAT-EBIT NOPAT . EBIT(1M NOPAT-EBTan NOPAT DEP OCF NOPAT + DEP OCF NOPAT + DEP OCF Cthr OCF Recoup NOwc +ATSV Total Teminal CF FCF Timeline Terminal Year FCFs Total Terminal CF FCFo Total initial 0. You are to evaluate an expansion project for your firm. Last year, the firm...
In June 2008, when gasoline prices were at an all-time high (more than $3.81 per gallon), Chrysler Motor Company promoted its Jeep vehicle with the offer of either $4,250 off the price of the vehicle or the guarantee that the buyer would not pay more than $2.75 per gallon of gas for the next 3 years (the details of the guarantee could vary by dealer). Required: 1. Assume that the Jeep vehicle you are interested in gets 15 mpg combined...
5) Mandy Manufacturing purchased a machine on August 1, 2014, and it was installed and ready to run on January 1, 2015. The following costs were incurred in the purchase and installation of the machine. Invoice price $ 1,300,000 Freight costs 7.000 Purchase discount 2.500 Installation costs 66,000 Electrical and power connections 32,000 Repairs to correct damage incurred during uncrating 12.000 Adjustment costs 36,000 Spare parts for future use 25,000 Provincial sales tas 91.000 Fines incurred during the transport and...
Most questions answered within 3 hours.
-
In C++ Programming, Try using loops only.
This lab demonstrates the use of the While Loop...
asked 4 minutes ago -
Effect of DCMU and sodium azide on Chlamydomonas? We did an
experiment where we had Chlamydomonas...
asked 43 minutes ago -
1a) According to the ideal gas law, _______________.
a. a gas has infinite volume at absolute...
asked 2 hours ago -
Oakdale Fashions, Inc. had $245,000 in 2018 taxable income.
Using the tax schedule in Table 2.3...
asked 2 hours ago -
The marketing class at CSUS had an average score of 150. An
educational analyst determined that...
asked 3 hours ago -
Justin Case has purchased a $250 000 home by putting 20 % down
and taking out...
asked 4 hours ago -
1. In a labor market, marginal cost for a firm is
____________.
a. recruiting cost
b....
asked 4 hours ago -
On January 1, 2019, ABC Company issued $60,000,000 of 20-year,
10.5% bonds when the market rate...
asked 5 hours ago -
39.4% of US homes continue to use a landline in addition to cell
phone service. 3...
asked 5 hours ago -
Starting with benzene, synthesize 1-phenyl-1-butyne.
Show intermediates and reagents.
asked 6 hours ago -
Create a 32-run crossed array design with six control factors
and two noise factors such that...
asked 7 hours ago -
A 500g sample of sand from source A has the following amounts
retained on each sieve....
asked 7 hours ago