A new computer network system is being considered for an organization. The initial cost of the...
A new computer network system is being considered for an organization. The initial cost of the system is $400,000. Annual maintenance and operating costs would be $25,000 per year. After 6 years, the system is expected to be worth $65,000. The desired ROI is 15% for it's projects. Determine the equivalent annual cost of the system.
Homework Answers
Answer
Annual cost=-initial cost*(A|P,i,n)-maintance cost+expected worth
*(A|F,i,n)
=-400000*(A|P,15%,6)-25000+65000*(A|F,15%,6)
=-400000*0.2642369-25000+65000*0.1142369
=-123269.361
the equivalent annual cost of the system is $123269
Add Answer to:
A new computer network system is being considered for an
organization. The initial cost of the...
Two incinerators are being considered by a waste management company. Design A has an initial cost of $2,825,000, has ann...
Two incinerators are being considered by a waste management company. Design A has an initial cost of $2,825,000, has annual operating and maintenance costs of $950,000, and requires overhauls every 5 years at a cost of $1,100,000. Design B is more sophisticated, including computer controls; it has an initial cost of $5,400,000, has annual operating and maintenance costs of $400,000, and requires overhauls every 10 years at a cost of $2,800,000. Using a 8.0 %/year interest rate, determine the capitalized...
Two incinerators are being considered by a waste management company. Design A has an initial cost...
Two incinerators are being considered by a waste management company. Design A has an initial cost of $2,500,000, has annual operating and maintenance costs of $800,000, and requires overhauls every 5 years at a cost of $1,250,000. Design B is more sophisticated, including computer controls; it has an initial cost of $5,750,000, has annual operating and maintenance costs of $600,000, and requires overhauls every 10 years at a cost of $3,000,000. Using a 5% per year interest year, design the...
Two incinerators are being considered by a waste management company. Design A has an initial cost of $2,525,000, has an...
Two incinerators are being considered by a waste management company. Design A has an initial cost of $2,525,000, has annual operating and maintenance costs of $900,000, and requires overhauls every 5 years at a cost of $1,250,000. Design B is more sophisticated, including computer controls; it has an initial cost of $5,350,000, has annual operating and maintenance costs of $450,000, and requires overhauls every 10 years at a cost of $3,325,000. Click here to access the TVM Factor Table Calculator...
Problem 15 Marita Lo desires to purchase a new front office computer system for her Lo...
Problem 15 Marita Lo desires to purchase a new front office computer system for her Lo Motel (LOMO) After considerable discussion with purveyors, she has narrowed her choices to systems sold by ABC Company and XYZ Computers. The system proposed by each company is expected to have a useful life of seven years. She believes the alternative systems are equivalent for providing services required by the LOMO; therefore, her focus is cost. The associated costs of each system are as...
A new registration system for the university is being considered. The acquisition (development) cost is $50,000....
A new registration system for the university is being considered. The acquisition (development) cost is $50,000. For the life of the system (5 years), the estimated operating costs are $10,000 per year and the estimated benefit is $5 per student per year. 2. Consider the acquisition cost as a sunk cost. How many students are required to register per year to pay the fixed operating costs? a. b. Calculate the break-even point, number of students per year to pay for...
Question 7 Two incinerators are being considered by a waste management company. Design A has an...
Question 7 Two incinerators are being considered by a waste management company. Design A has an initial cost of $2,150,000, has annual operating and maintenance costs of $700,000, and requires overhauls every 5 years at a cost of $1,200,000. Design B is more sophisticated, including computer controls; it has an initial cost of $5,550,000, has annual operating and maintenance costs of $400,000, and requires overhauls every 10 years at a cost of $2,550,000. Click here to access the TVM Factor...
Kermit is considering purchasing a new computer system.
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...
Kermit is considering purchasing a new computer system.
Question 7Kermit is considering purchasing a new computer system. The purchase price is $137160. 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 $8614 at that time. Over the 5-year period, Kermit expects to pay a technician $20,000 per year to maintain...
1. a. One tractor to be considered is an International Harvestor. It has an initial cost...
1. a. One tractor to be considered is an International Harvestor. It has an initial cost of $30,000 and an annual maintenance of 175 with a salvage value of $10,000. It's useful life in years is 18. What is the value/cost closest to the annual worth of the International Harvestor tractor using an interest rate of 10%? b. One tractor to be considered is an International Harvestor. It has an initial cost of $34,000 and an annual maintenance of 175...
04.05-PR002 Video Solution Video Solution Two incinerators are being considered by a waste management company. Design...
04.05-PR002 Video Solution Video Solution Two incinerators are being considered by a waste management company. Design A has an initial cost of $2,500,000, has annual operating and maintenance costs of $800,000, and requires overhauls every 5 years at a cost of $1,250,000. Design B is more sophisticated, including computer controls; it has an initial cost of $5,750,000, has annual operating and maintenance costs of $600,000, and requires overhauls every 10 years at a cost of $3,000,000. Using a 5%/year interest...
Two incinerators are being considered by a waste management company. Design A has an initial cost of $2,525,000, has annual operating and maintenance costs of $900,000, and requires overhauls every 5 years at a cost of $1,250,000. Design B is more sophisticated, including computer controls; it has an initial cost of $5,350,000, has annual operating and maintenance costs of $450,000, and requires overhauls every 10 years at a cost of $3,325,000. Click here to access the TVM Factor Table Calculator...
Problem 15 Marita Lo desires to purchase a new front office computer system for her Lo Motel (LOMO) After considerable discussion with purveyors, she has narrowed her choices to systems sold by ABC Company and XYZ Computers. The system proposed by each company is expected to have a useful life of seven years. She believes the alternative systems are equivalent for providing services required by the LOMO; therefore, her focus is cost. The associated costs of each system are as...
A new registration system for the university is being considered. The acquisition (development) cost is $50,000. For the life of the system (5 years), the estimated operating costs are $10,000 per year and the estimated benefit is $5 per student per year. 2. Consider the acquisition cost as a sunk cost. How many students are required to register per year to pay the fixed operating costs? a. b. Calculate the break-even point, number of students per year to pay for...
Question 7 Two incinerators are being considered by a waste management company. Design A has an initial cost of $2,150,000, has annual operating and maintenance costs of $700,000, and requires overhauls every 5 years at a cost of $1,200,000. Design B is more sophisticated, including computer controls; it has an initial cost of $5,550,000, has annual operating and maintenance costs of $400,000, and requires overhauls every 10 years at a cost of $2,550,000. Click here to access the TVM Factor...
04.05-PR002 Video Solution Video Solution Two incinerators are being considered by a waste management company. Design A has an initial cost of $2,500,000, has annual operating and maintenance costs of $800,000, and requires overhauls every 5 years at a cost of $1,250,000. Design B is more sophisticated, including computer controls; it has an initial cost of $5,750,000, has annual operating and maintenance costs of $600,000, and requires overhauls every 10 years at a cost of $3,000,000. Using a 5%/year interest...
Most questions answered within 3 hours.
-
Computer Programming II CS141(Java)
Mention the appropriate relationship between following
classes:
HOD–StaffMember
Car–Ferrari
Student-Address
BankAccount–FixedAccount
House-Building...
asked 1 hour ago -
Assume one of your finals has 50 questions on it, and
lucky for you, it's all...
asked 3 hours ago -
Rice Products in Bangladesh
Business behavior is derived in large part from the basic cultural
environment...
asked 4 hours ago -
The following base sequence is found for a mRNA fragment from
wild-type E. coli: 5'- UAUCAGUAGAUAAUGUAACC-3'...
asked 4 hours ago -
For this exercise, round all regression parameters to three
decimal places.
One of the two tables...
asked 5 hours ago -
What is the 5% level of significance for mean = 3.60, standard
deviation = 0.94, and...
asked 5 hours ago -
Prior to beginning work on this discussion, please read the
article by Hayley Peterson, 15 Companies...
asked 5 hours ago -
Which pair of aqueous solutions, when mixed, will form a
precipitate?
A) NaNO3 and AgC2H3O2
B)...
asked 6 hours ago -
1-Write an algorithm to get two numbers from the user (as
inputs) and calculate the sum...
asked 9 hours ago -
Define white-collar crime. What is the difference between
offender and offense-based definitions of white-collar crime? What...
asked 10 hours ago -
Consider a reaction which is 1st order with respect to A and 1st
order with respect...
asked 10 hours ago -
c++
The length of the hypotenuse of a right-angled triangle is the
square root of the...
asked 10 hours ago