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02 A firm purchased some equipment at a very favorable price of $30,000. an annual net saving of ...
solve it clearly with all steps i want to understand everything and how i got iRR...
solve it clearly with all steps i want to understand
everything and how i got iRR value
all steps please and be neat
Q2. A firm purchased some equipme resulted in an annual net saving of $4000 per year during the 1 years, the equipment was sold for $20,000. Assuming nt at a very favorable price of $30,000. The equipment 10 years it was used. At the end of 10 MARR is 12% A Use Present Worth (PW) method and...
solve by hand A firm purchased some equipment at an initial cost of $46,500. The equipment...
solve by hand
A firm purchased some equipment at an initial cost of $46,500. The equipment yielded an annual net saving of $11,530 per year during its 15-year life. At the end of 15 years, the equipment was sold for $8,225. Assuming an interest rate of 13%, did the equipment purchase prove to be desirable? Make your estimates in terms of EUAW.
A young man followed the advice of his Dad and started saving some money directly from...
A young man followed the advice of his Dad and started saving some money directly from every monthly paycheck where he put $175 into the bank. If the bank was giving him 4% annual interest, how much money will the young man have after 40 years of working? (10 pts) Draw the cash flow diagram. b) (20 pts) What will be the future amount of money in his bank account?
3) (30 pts) A young man followed the advice of his Dad and started saving some...
3) (30 pts) A young man followed the advice of his Dad and started saving some money directly from every monthly paycheck where he put $175 into the bank. If the bank was giving him 4% annual interest, how much money will the young man have after 40 years of working? a) (10 pts) Draw the cash flow diagram. b) (20 pts) What will be the future amount of money in his bank account?
2. A ne deposit an annual saving amount for 25 years in order to r during...
2. A ne deposit an annual saving amount for 25 years in order to r during retirement. The withdrawal will starts one year after the w graduate wants to withdraw $25,000 per year retin last deposit. The graduate uses 8% per year interest rate. a) Draw the cash flow diagram How much does the graduate need to deposit if the withdrawal period is planned to be very long? b) Write the AW equation
1.) An investment in manufacturing equipment yields the following cash flows for 8 years. At the...
1.) An investment in manufacturing equipment yields the following cash flows for 8 years. At the end of the 8th year the equipment can be sold for $15,000. Assuming an interest rate of 14% (compounded annually), how much would you be willing to invest in this manufacturing equipment? C=? I=2000 I=2000 I=2000 I=2000 I=1000 I=1000 I=1000 I=1000 L=$15,000 0 1 2 3 4 5 6 7 8 C: Cost, I: Income, L: Salvage Value 2.) Suppose that the nominal annual...
Question 2 A firm is planning to introduce a new product and has called for bids...
Question 2 A firm is planning to introduce a new product and has called for bids for the construction of the plant to manufacture the product. The cash flows predicted for the two bids under consideration are given below: Cash Flow Year Plant A Plant B 0 -90,000 -50,000 1 45,000 30,000 2 55,000 37,000 3 50,000 28,000 Using the net present value (NPV) approach, with an interest rate of 7% p.a., which plant should the company choose? (10 marks)...
a. Your firm purchased equipment costing $300,000 1 year ago. The firm also incurred shipping costs...
a. Your firm purchased equipment costing $300,000 1 year ago. The firm also incurred shipping costs of $18,000 and installation costs of $2,000. The IRS allows this category of equipment to be depreciated over 4 years. The equipment is expected to sell for $40,000 today. What is the book value of the asset at the time of the sale? b. An asset was purchased for $300,000 originally. Each year for the past 8 year, depreciation has been recorded which results...
1. Your firm purchased equipment costing $600,000 1 year ago. The firm also incurred shipping costs...
1. Your firm purchased equipment costing $600,000 1 year ago. The firm also incurred shipping costs of $18,000 and installation costs of $2,000. The IRS allows this category of equipment to be depreciated over 4 years. The equipment is expected to sell for $40,000 today. What is the book value of the asset at the time of the sale? 2. A piece of equipment was originally purchased 5 years ago for $400,000 and is now being sold for $320,000. Yearly...
1. S175.000 is invested in a project at Time o. Over the next 5 years, the...
1. S175.000 is invested in a project at Time o. Over the next 5 years, the project produces $90.000 revenue and $8000 per year in expenses. Draw the gross and net cash flow diagram per year in s for this project. 2. A piece of equipment is purchased for $25.000 at Time 0. Its operating and maintenance (O& M) costs are $1000 in Year I. The O&M costs increase by an additional $500 each year for the next four years....
solve it clearly with all steps i want to understand
everything and how i got iRR value
all steps please and be neat
Q2. A firm purchased some equipme resulted in an annual net saving of $4000 per year during the 1 years, the equipment was sold for $20,000. Assuming nt at a very favorable price of $30,000. The equipment 10 years it was used. At the end of 10 MARR is 12% A Use Present Worth (PW) method and...
solve by hand
A firm purchased some equipment at an initial cost of $46,500. The equipment yielded an annual net saving of $11,530 per year during its 15-year life. At the end of 15 years, the equipment was sold for $8,225. Assuming an interest rate of 13%, did the equipment purchase prove to be desirable? Make your estimates in terms of EUAW.
3) (30 pts) A young man followed the advice of his Dad and started saving some money directly from every monthly paycheck where he put $175 into the bank. If the bank was giving him 4% annual interest, how much money will the young man have after 40 years of working? a) (10 pts) Draw the cash flow diagram. b) (20 pts) What will be the future amount of money in his bank account?
2. A ne deposit an annual saving amount for 25 years in order to r during retirement. The withdrawal will starts one year after the w graduate wants to withdraw $25,000 per year retin last deposit. The graduate uses 8% per year interest rate. a) Draw the cash flow diagram How much does the graduate need to deposit if the withdrawal period is planned to be very long? b) Write the AW equation
Question 2 A firm is planning to introduce a new product and has called for bids for the construction of the plant to manufacture the product. The cash flows predicted for the two bids under consideration are given below: Cash Flow Year Plant A Plant B 0 -90,000 -50,000 1 45,000 30,000 2 55,000 37,000 3 50,000 28,000 Using the net present value (NPV) approach, with an interest rate of 7% p.a., which plant should the company choose? (10 marks)...
1. S175.000 is invested in a project at Time o. Over the next 5 years, the project produces $90.000 revenue and $8000 per year in expenses. Draw the gross and net cash flow diagram per year in s for this project. 2. A piece of equipment is purchased for $25.000 at Time 0. Its operating and maintenance (O& M) costs are $1000 in Year I. The O&M costs increase by an additional $500 each year for the next four years....
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