Please solve this question. Option A: Life = 6 years, Initial cost = $28,000, Annual operating...
Please solve this question.
Option A: Life = 6 years, Initial cost = $28,000, Annual operating cost = $2,000
Option B: Life = 3 years, Initial cost = $23,000, Annual operating cost = $3000
MARR = 9%
n=3 years
How much is saved by choosing investment B in this case?
Enter a whole number to the nearest hundred. Do include a comma, do not include $.
Answer exactly in the form: X,Y00
Homework Answers
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Please solve this question.
Option A: Life = 6 years, Initial cost = $28,000, Annual
operating...
Purchase $320.000 Lease Alternative Initial Cost Lease Annual Operating costs Salvage Value Life, years $40 000...
Purchase $320.000 Lease Alternative Initial Cost Lease Annual Operating costs Salvage Value Life, years $40 000 $7.000 $8500 $ 80.000 5 5 c. PW of Purchase Option a. PW of the lease Option 0. Salvage value of purchase Option Decision to Purchase or Lease 567.942 9-193,337 C5-309 5515 5-49,072 5-319.327 * Lease You are given the following is about two machine with 10% Com First costs 30 000 Antal maintenance con 111000 Persodi me cost every years Salvare values 6000...
solve only 2.24 .... 2.23 The Automated Assembly Company is considering three different methods for assembly...
solve only 2.24 ....
2.23 The Automated Assembly Company is considering three different methods for assembly of parts in a production line. Method 1 has an initial cost of $40,000, an annual cost of $9,000, and a two-year life. Method 2 has an initial cost of $80,000, with a 4-year life and an annual operating cost of $6,000. Method 3 is a longer-life alternative, lasting 8 years with an initial cost of $160,000 and annual operating costs of $2,000. Methods...
5. The data for new and used machines are shown below: Initial cost($) Annual operating cost...
5. The data for new and used machines are shown below: Initial cost($) Annual operating cost ($/year) Salvage value (5) Life (years) Used machine 15,000 8,000 5,000 New machine 40,000 2,000 10,000 Use an interest rate of 7% per year. a) Find the present worth of the new machine b) Compare the PW of the used machine to the new c) If each machine were to be funded using an annual payment load at 8%, how much would the annual...
please solve the question with steps please What is the equivalent annual cost in years 1...
please solve the question with steps please
What is the equivalent annual cost in years 1 through 10 of a contract that has a first cost of $76,000 in year O and annual costs of $18,000 in years 3 through 10? Use an interest rate of 9% per year. The equivalent annual cost is determined to be $ 73476.634 x
I want solve it, by this way first cost , annual cost, salvage value , and i% law : AW
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...
11-3. Office equipment whose initial cost is $100,000 has an estimated actual life of 6 years,...
11-3. Office equipment whose initial cost is $100,000 has an estimated actual life of 6 years, with an estimated salvage value of $10,000. Prepare tables listing the annual costs of depreciation and the book value at the end of each 6 years, based on straight-line and MACRS depreciation.
11-3. Office equipment whose initial cost is $100,000 has an estimated actual life of 6 years,...
11-3. Office equipment whose initial cost is $100,000 has an estimated actual life of 6 years, with an estimated salvage value of $10,000. Prepare tables listing the annual costs of depreciation and the book value at the end of each 6 years, based on straight-line and MACRS depreciation.
Problem 3 (25 points) A machine which can be use to produce an aircraft part from titanium has an initial cost of S140000 (initial investment at year 0) with annual operating cost of $25,000 and...
Problem 3 (25 points) A machine which can be use to produce an aircraft part from titanium has an initial cost of S140000 (initial investment at year 0) with annual operating cost of $25,000 and revenue of 75,000 per year starting 3 years from now. In year 4, $8000 was given to the company by Environmental Protection Agency as credit for its environmental compliance. What is the payback period at a)0% b) 12% Given the two guesses for x number...
5) Evaluate the following 3 alternatives. $1,500 initial cost $1,848 $3,048 annual benefit $1,400 $1,500 $1,200 useful life 2 years 6 years 3 years salvage value $1,000 1,000 $1,500 Identical rep...
5) Evaluate the following 3 alternatives. $1,500 initial cost $1,848 $3,048 annual benefit $1,400 $1,500 $1,200 useful life 2 years 6 years 3 years salvage value $1,000 1,000 $1,500 Identical replacements will be made for A and C at the end of useful lifes. What is the best choice? (i-10%/yr) a) C b)A c)B d) doing nothing
5) Evaluate the following 3 alternatives. $1,500 initial cost $1,848 $3,048 annual benefit $1,400 $1,500 $1,200 useful life 2 years 6 years 3...
Really short question! Please help me to solve, thank you! 5. The following estimates have been...
Really short question! Please help me to solve, thank
you!
5. The following estimates have been made for an investment project: Initial investment: $450,000 Unit price: $40 Product life: 5 years Sales volumes (in units): ye Unit cost of a commodity: $20 Cost ofcapital: 790 year 2 year 3 year 4 year 5 3000 6000 7000 8000 7000 Calculate the sensitivity (i.e. maximum tolerable unfavorable change as a percentage of the original estimated value) in (a) sales price, (b) unit...
Purchase $320.000 Lease Alternative Initial Cost Lease Annual Operating costs Salvage Value Life, years $40 000 $7.000 $8500 $ 80.000 5 5 c. PW of Purchase Option a. PW of the lease Option 0. Salvage value of purchase Option Decision to Purchase or Lease 567.942 9-193,337 C5-309 5515 5-49,072 5-319.327 * Lease You are given the following is about two machine with 10% Com First costs 30 000 Antal maintenance con 111000 Persodi me cost every years Salvare values 6000...
solve only 2.24 ....
2.23 The Automated Assembly Company is considering three different methods for assembly of parts in a production line. Method 1 has an initial cost of $40,000, an annual cost of $9,000, and a two-year life. Method 2 has an initial cost of $80,000, with a 4-year life and an annual operating cost of $6,000. Method 3 is a longer-life alternative, lasting 8 years with an initial cost of $160,000 and annual operating costs of $2,000. Methods...
5. The data for new and used machines are shown below: Initial cost($) Annual operating cost ($/year) Salvage value (5) Life (years) Used machine 15,000 8,000 5,000 New machine 40,000 2,000 10,000 Use an interest rate of 7% per year. a) Find the present worth of the new machine b) Compare the PW of the used machine to the new c) If each machine were to be funded using an annual payment load at 8%, how much would the annual...
please solve the question with steps please
What is the equivalent annual cost in years 1 through 10 of a contract that has a first cost of $76,000 in year O and annual costs of $18,000 in years 3 through 10? Use an interest rate of 9% per year. The equivalent annual cost is determined to be $ 73476.634 x
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...
11-3. Office equipment whose initial cost is $100,000 has an estimated actual life of 6 years, with an estimated salvage value of $10,000. Prepare tables listing the annual costs of depreciation and the book value at the end of each 6 years, based on straight-line and MACRS depreciation.
Problem 3 (25 points) A machine which can be use to produce an aircraft part from titanium has an initial cost of S140000 (initial investment at year 0) with annual operating cost of $25,000 and revenue of 75,000 per year starting 3 years from now. In year 4, $8000 was given to the company by Environmental Protection Agency as credit for its environmental compliance. What is the payback period at a)0% b) 12% Given the two guesses for x number...
5) Evaluate the following 3 alternatives. $1,500 initial cost $1,848 $3,048 annual benefit $1,400 $1,500 $1,200 useful life 2 years 6 years 3 years salvage value $1,000 1,000 $1,500 Identical replacements will be made for A and C at the end of useful lifes. What is the best choice? (i-10%/yr) a) C b)A c)B d) doing nothing
5) Evaluate the following 3 alternatives. $1,500 initial cost $1,848 $3,048 annual benefit $1,400 $1,500 $1,200 useful life 2 years 6 years 3...
Really short question! Please help me to solve, thank
you!
5. The following estimates have been made for an investment project: Initial investment: $450,000 Unit price: $40 Product life: 5 years Sales volumes (in units): ye Unit cost of a commodity: $20 Cost ofcapital: 790 year 2 year 3 year 4 year 5 3000 6000 7000 8000 7000 Calculate the sensitivity (i.e. maximum tolerable unfavorable change as a percentage of the original estimated value) in (a) sales price, (b) unit...
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