A certain piece of equipment will cost $125,000 in five years. If the interest rate is 12%, The cost today of this equipment is close to Select one: $83,351 $70,888 $61,325 $93,136
A certain piece of equipment will cost $125,000 in five years. If the interest rate is...
Engineering Corp. buys a piece of equipment today for $16,000. It will sell it in five years for $4,000. Each year, this piece of equipment lowers costs by S6 o0 but it requires annual maintenance of $3,00 If the annual interest rate were 12%, what would be the present value of this investment?
The total cost of owning and operating a certain piece of equipment for x years is given by: C = 4000 (20+ S™ 41/5 dt) Find the total cost for x = 10 years. Give your answer to the nearest dollar.
Ronan Industries needed to buy a piece of equipment, so it was financed for five years with payments of $20,000 at the end of each year. The rate of interest was 8% with the future value of 1 for five periods at 8% was 1.46933. The present value of the ordinary annuity for these same five periods is 3.99271, and the future value of an ordinary annuity is 5.8666. The machine will cost Ronan Industries a total of A :...
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...
ANSWER THE FOLLOWING QUESTIONS:-
It is estimated that a certain piece of equipment can save $22,000 per year in labor (a) and materials costs. The equipment has an expected life of five years and no market value. If the company must earn a 15% annual return on such investments, estimate how much money could be justified now for the purchase of this piece of equipment? Draw a cash-flow diagram from the company's viewpoint 73,747 $2.31 per gallon. In 1993, the...
ABC company purchased a piece of equipment 3 years ago with the cost of 8000. At the end of the third year, the accumulated depreciation was $5,000. ABC sold the equipment at $1,000. What is the gain or loss of selling the equipment? Select one or more: o a. Gain $1,000 b. Loss $2,000 c. Gain $2,000 d. Loss $1,000
Another department has selected a new piece of equipment to
replace an old piece of equipment in your plant. You have been
asked to estimate the economic life of the new piece of equipment
and the EAC for that economic life. Additionally, you have been
asked to estimate what the marginal cost is to keep the existing
piece of equipment for an additional year. You have been provided
the following details. Your firm’s interest rate is 9%. The
purchase price...
2) What is the net equipment cost, given the following, when a new piece of equipment replaces an old one: Old equipment sells for $125,000 Book value of old equipment 22,000 TaxRate 40% New equipment cost 800,000 Site survey 18,000 Installation cost 20,000
3. Your firm is buying a piece of equipment. The payments are $1236 per month for five years with an additional "balloon" payment (final payment) of $10,000 at the end of year five. The interest rate is 3.5%. a. What is the original cost of the equipment? b. What would the monthly payment be for a loan for the original cost of the equipment if the loan is paid monthly with no balloon payment?
The acquisition cost of the piece of equipment should be: Select one or more: O a. The fair value of the equipment. b. The cost of the equipment less the value expected to sell after 5 years use. O c. The cost of the equipment plus insurance of the first year use. d. The cost of the equipment plus tax, shipping cost and installation cost for it ready to use.