Homework Answers
EUAW = -10000 * (A/P, 5%,6) - 500 + 1000 + 3000 * (A/F, 5%,6)
= -10000 * 0.197017 - 500 + 1000 + 3000 * 0.147017
= -1029.12
Add Answer to:
The cost of a machine is $10,000. The annual operation cost and maintenan machine is expected to save $1000 p...
Machine A was purchased last year for $10,000 and had an estimated market value of $1,900...
Machine A was purchased last year for $10,000 and had an estimated market value of $1,900 at the end of its 6-year life. Annual operating costs are $1,450. The machine will perform satisfactorily for the next five years. A salesman for another company is offering Machine B for $59,000 with an market value of $5,900 after 5 years. Annual operating costs will be $1,050. Machine A could be sold now for $16,000, and MARR is 50% per year. Using the...
A machine has an initial cost of $10,000 and a salvage value of $2,000 after a...
A machine has an initial cost of $10,000 and a salvage value of $2,000 after a 5 year life. Annual benefits from using the machine are $5000 and the annual cost of operation is $1800. The tax rate is 50%. Assume straight line depreciation. Find the IRR? Show full steps, and equations, neatly, thanks
Question 4 A special-purpose machine is to be purchased at a cost of $15,000. The following table shows the expected annual operating and maintenance cost and the salvage values for each year of the...
Question 4 A special-purpose machine is to be purchased at a cost of $15,000. The following table shows the expected annual operating and maintenance cost and the salvage values for each year of the machine's service: Year of Service O&M Costs $2,500 3,200 5,300 6,500 7.800 Market Value $12,800 8,100 5,200 3.500 0 If the interest rate is 10%, what is the economic service life for this machine?
Question 4 A special-purpose machine is to be purchased at a cost...
7. (10 points) A new production machine costs $120,000 and will have a $10,000 salvage value...
7. (10 points) A new production machine costs $120,000 and will have a $10,000 salvage value when disposed of in ten years. Annual repair costs are expected to be $0 in years 1, 2, 3 and 4, $5000 in year 5, $5500 in year 6, $6000 in year 7, $6500 in year 8, $7000 in year 9, and $7500 in year 10. If interest is 10%, what is the equivalent uniform annual cost of the new machine?
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 _____________.
1. A new pipeline is installed. Annual maintenance and pumping costs are considered to be paid in...
1. A new pipeline is installed. Annual maintenance and pumping costs are considered to be paid in their entireties at the end of the years in which their costs are incurred (assume that maintenance happens in year 10). The pipe has the following costs and properties: Initial cost $7,500 Annual interest rate 5% Service life 10 years Salvage value $500 Annual maintenance $500 Pump cost/hour $2.75 Pump operation 2000 hours/year What is the equivalent uniform annual cost (EUAC) of the pipe?
6B. You can continue to use your less efficient machine at a cost of $10,000 annually...
6B. You can continue to use your less efficient machine at a cost of $10,000 annually for the next five years. Alternatively, you can purchase a 5-year more efficient machine for $15,000 plus $5,000 annual maintenance. At a cost of capital of 15%, you should: A) Buy the new machine and save $525 in equivalent annual costs. B) Keep the old machine and save $525 in equivalent annual costs. c) Keep the old machine and save $1933 in equivalent annual...
A student bought $1000 worth of furniture. What is the equivalent annual cost if it is...
A student bought $1000 worth of furniture. What is the equivalent annual cost if it is expected to last 10 years and the interest-rate is 5%
One company bought a milling machine for $ 100,000. The company has the intention to use...
One company bought a milling machine for $ 100,000. The company has the intention to use the machine for the next 5 years. The machine is expected to save the company $ 35,000 during the first year of operation. From then on the annual savings are expected decrease 3% every year due to maintenance costs. Assuming an operation of 3,000 hours per year and that the machine will have no residual value ("Salvage Value") at the end of the 5...
cost for machine tool are expected to be 1000$ at the end of the first year...
cost for machine tool are expected to be 1000$ at the end of the first year of the machines life and increase 100$/year thereafter. The machine tools expected like is 15 years. The firms MARR is 10%/year. What is the annual worth of the maintenance cost? Draw the cash flow diagram to help solve. HINT End of year one tools are expected to be 1000$, and then increases 100$ thereafter up to 15 years. Show ALL WORK and EQUATIONS, and...
Machine A was purchased last year for $10,000 and had an estimated market value of $1,900 at the end of its 6-year life. Annual operating costs are $1,450. The machine will perform satisfactorily for the next five years. A salesman for another company is offering Machine B for $59,000 with an market value of $5,900 after 5 years. Annual operating costs will be $1,050. Machine A could be sold now for $16,000, and MARR is 50% per year. Using the...
Question 4 A special-purpose machine is to be purchased at a cost of $15,000. The following table shows the expected annual operating and maintenance cost and the salvage values for each year of the machine's service: Year of Service O&M Costs $2,500 3,200 5,300 6,500 7.800 Market Value $12,800 8,100 5,200 3.500 0 If the interest rate is 10%, what is the economic service life for this machine?
Question 4 A special-purpose machine is to be purchased at a cost...
7. (10 points) A new production machine costs $120,000 and will have a $10,000 salvage value when disposed of in ten years. Annual repair costs are expected to be $0 in years 1, 2, 3 and 4, $5000 in year 5, $5500 in year 6, $6000 in year 7, $6500 in year 8, $7000 in year 9, and $7500 in year 10. If interest is 10%, what is the equivalent uniform annual cost of the new machine?
6B. You can continue to use your less efficient machine at a cost of $10,000 annually for the next five years. Alternatively, you can purchase a 5-year more efficient machine for $15,000 plus $5,000 annual maintenance. At a cost of capital of 15%, you should: A) Buy the new machine and save $525 in equivalent annual costs. B) Keep the old machine and save $525 in equivalent annual costs. c) Keep the old machine and save $1933 in equivalent annual...
Most questions answered within 3 hours.
-
List and compare different forms of passive transport and active
transport.
asked 6 minutes ago -
In Netherland Dwarf rabbits, dwarf size is determined by allele
N, and normal-size by allele n....
asked 13 minutes ago -
During Heaton Company’s first two years of operations, it
reported absorption costing net operating income as...
asked 27 minutes ago -
Consider testing the
hypotheses:
H0: p = 0.56
H1: p > 0.56
where p is
the...
asked 30 minutes ago -
In a two-factor analysis of variance a main effect is defined as
____.
a. the unique...
asked 38 minutes ago -
A bank's loan officer rates applicants for credit. The ratings
are normally distributed with a mean...
asked 38 minutes ago -
Fill in the following information for Adipic Acid: molecular
weight, g or ml, mole, melting point,...
asked 44 minutes ago -
how
to use a for loop to iterate over the string below and print each
character...
asked 46 minutes ago -
Please type answer, Thanks.
Respond to the following in a minimum of 175
words:
Research industry...
asked 45 minutes ago -
Assume that all interest rates in the economy increase from 9
percent to 10 percent. Which...
asked 55 minutes ago -
Describe the function of a Change Control Board.
When calculating Planned Value (PV), what is the...
asked 1 hour ago -
The customer help center in your company receives calls from
customers who need help with some...
asked 1 hour ago