A project has an initial cost of $200,000 and uniform annual benefits of $35,000. At the...
A project has an initial cost of $200,000 and uniform annual benefits of $35,000. At the end of its 8-year useful life, its salvage value is $50,000. At a 10% interest rate, the net present worth of the project is approximately what amount?
$30,250
$130,000
$10,050
$34,825
Homework Answers
The net present worth of the project is:-
= -200000+35000*(P/A,10%,8)+50000*(P/F,10%,8)
= -200000+35000*5.334926+50000*0.466507
= -200000+186722.4+23325.37
= 10048
Option(C)
Add Answer to:
A project has an initial cost of $200,000 and uniform annual
benefits of $35,000. At the...
Machine X has an initial cost of $14,000. It is expected to last 10 years, to...
Machine X has an initial cost of $14,000. It is expected to last 10 years, to cost $255 per year to maintain and to have a salvage value of $6,000 at the end of its useful life. The equivalent uniform annual cost of the machine at 7% interest is approximately _____________.
What is the present worth of a machine with an initial cost of $46,000, an annual...
What is the present worth of a machine with an initial cost of $46,000, an annual cost of $4,000 per year, a salvage value of + $10,000, a useful life of 8 years, and a financing cost rate of 5% per year?
Please show code if you use excel thank you. Project A has a first cost of...
Please show code if you use excel thank you. Project A has a first cost of $3,500, annual operating and maintenance costs of $1,900, annual savings of $2,300, and a salvage value of $1,800 at the end of its 5 year useful life. Project B has a first cost of $6,000, annual operating and maintenance costs of $1,600, annual savings of $2,500, and a salvage value of $2,000 at the end of its 7 year useful life. Using a MARR...
Week 5 CNOW Assignment Calculator provided below. Rydell's cost of capital is 8%. Project A Project...
Week 5 CNOW Assignment Calculator provided below. Rydell's cost of capital is 8%. Project A Project B This project requires an initial investment of $167,500. The project will have a life of 8 years. Annual revenues associated with the project will be $130,000 and expenses associated with the project will be $35,000. This project requires an initial investment of $137,500. The project will have a life of 7 years. Annual revenues associated with the project will be $109,000 and expenses...
Find the equivalent uniform annual cost 3. Using an interest rate of 12%, find the equivalent miform annual cost for a piece of construction equipment that has an initial purchase cost o $30,000,...
Find the equivalent uniform annual cost
3. Using an interest rate of 12%, find the equivalent miform annual cost for a piece of construction equipment that has an initial purchase cost o $30,000, an estiinat nomic life of 8 years, and an estimated salvage value of $10,000. Annual mainte- nance will anount to $600 per year and periodic overhauls costing $1.,000 each will occur at the end of the second, fourth, and sixth years.
3. Using an interest rate of...
7. You are analyzing a project with an initial cost of £130,000. The project is expected...
7. You are analyzing a project with an initial cost of £130,000. The project is expected to return £20,000 the first year, £50,000 the second year and £100,000 the third and final year. There is no salvage value. The current spot rate is £0.6211. The nominal risk-free return is 5.5 percent in the U.K. and 6 percent in the U.S. The return relevant to the project is 14 percent in the U.S. Assume that uncovered interest rate parity exists. What...
What is the present worth of a machine with an initial cost of $41,000, an annual...
What is the present worth of a machine with an initial cost of $41,000, an annual cost of $6,000 per year, a salvage value of + $12,000, a useful life of 7 years, and a financing cost rate of 5% per year?
Need cash flow diagram 04) Three mutually exclusive alternative are being considered Initial Cost Benefit at the end of the first Year Uniform Annual Benefits at end of subsequent years Useful Lif...
Need cash flow diagram
04) Three mutually exclusive alternative are being considered Initial Cost Benefit at the end of the first Year Uniform Annual Benefits at end of subsequent years Useful Life in years $500 $200 $100 $400 $200 $125 $300 $200 $100 At the end of its useful life, an alternative is not replaced. If MARR is 10%, which alternatives should be selected? a) Based on the payback period? b) Based on benefit-cost ratio analysis c) Benefit/Costs Analysis using...
Two types of buildings are being considered for a new project. The following table provides the estimates prepared for...
Two types of buildings are being considered for a new project.
The following table provides the estimates prepared for each type
of building. if the interest rate is 9%, determine the net present
worth for both buildings A amd B.
description. building A. Building B.
initial. $60,000. $200,000
estimated life. 15 years. 25 years
salvage value. $0. $50,000
annual disbursememnt. $11,000. $5,000
(20 pts) Two types of buildings are being considered for a new project. The following table provides the...
Calculate the present worth of the Alternative "A". Assume the interest rate is 2% per year,...
Calculate the present worth of the Alternative "A". Assume the interest rate is 2% per year, compounded annually. Alternative A Initial cost $1,000,000 Annual maintenance cost $50,000 Overhaul cost every 4 years $200,000 Salvage value $400,000 Useful life 40 years
Week 5 CNOW Assignment Calculator provided below. Rydell's cost of capital is 8%. Project A Project B This project requires an initial investment of $167,500. The project will have a life of 8 years. Annual revenues associated with the project will be $130,000 and expenses associated with the project will be $35,000. This project requires an initial investment of $137,500. The project will have a life of 7 years. Annual revenues associated with the project will be $109,000 and expenses...
Find the equivalent uniform annual cost
3. Using an interest rate of 12%, find the equivalent miform annual cost for a piece of construction equipment that has an initial purchase cost o $30,000, an estiinat nomic life of 8 years, and an estimated salvage value of $10,000. Annual mainte- nance will anount to $600 per year and periodic overhauls costing $1.,000 each will occur at the end of the second, fourth, and sixth years.
3. Using an interest rate of...
7. You are analyzing a project with an initial cost of £130,000. The project is expected to return £20,000 the first year, £50,000 the second year and £100,000 the third and final year. There is no salvage value. The current spot rate is £0.6211. The nominal risk-free return is 5.5 percent in the U.K. and 6 percent in the U.S. The return relevant to the project is 14 percent in the U.S. Assume that uncovered interest rate parity exists. What...
Need cash flow diagram
04) Three mutually exclusive alternative are being considered Initial Cost Benefit at the end of the first Year Uniform Annual Benefits at end of subsequent years Useful Life in years $500 $200 $100 $400 $200 $125 $300 $200 $100 At the end of its useful life, an alternative is not replaced. If MARR is 10%, which alternatives should be selected? a) Based on the payback period? b) Based on benefit-cost ratio analysis c) Benefit/Costs Analysis using...
Two types of buildings are being considered for a new project.
The following table provides the estimates prepared for each type
of building. if the interest rate is 9%, determine the net present
worth for both buildings A amd B.
description. building A. Building B.
initial. $60,000. $200,000
estimated life. 15 years. 25 years
salvage value. $0. $50,000
annual disbursememnt. $11,000. $5,000
(20 pts) Two types of buildings are being considered for a new project. The following table provides the...
Most questions answered within 3 hours.
-
How much must I invest today if I want to withdraw 1/3 of my
original investment...
asked 59 minutes ago -
What is meant by a “term premium”?
What can explain such a premium? Is it a...
asked 2 hours ago -
23. Which molecule has only covalent bonds? A. CO2 B. Al2O3 C.
Mg3N2
24. The octet...
asked 3 hours ago -
the
total pressure for a mixture of N2O4 and NO2 is 2.20 atm. If Kp=
7.10...
asked 3 hours ago -
Delaware Corp. prepared a master budget that included $22,385
for direct materials, $28,600 for direct labor,...
asked 3 hours ago -
For pesticide HCB (hexachlorobenzene), its logarithmic partition
coefficient log Kow is 5.6. What would be the...
asked 3 hours ago -
A chemist requires 0.422 mil Na2CO3 for a reaction. How many
grams does this correspond to?
asked 3 hours ago -
If the vapor pressure of carvone is approximately 9.4 torr at 99
°C, approximately how much...
asked 3 hours ago -
A juice bottling company is carrying out a test at 10%
significance that the mean population...
asked 3 hours ago -
What is the reflectivity (in percent) needed to keep water at a
temperature near its freezing...
asked 3 hours ago -
Suppose that the average surface temperature of Earth is 300K.
Assume this is uniform over its...
asked 3 hours ago -
Draw the condensed structural formula for alkenes and alkynes or
the line-angle structural formula for cycloalkenes...
asked 3 hours ago