3_practice_problems

K A highway bridge is being considered for replacement. The new bridge would cost $X and would last for 24 years. Annual maintenance costs for the new bridge are estimated to be $27,000. People will be charged a toll of $0.22 per car to use the new bridge. Annual car traffic is estimated at 360,000 cars. The cost of collecting the toll consists of annual salaries for six collectors at $9,000 per collector. The existing bridge can be refurbished for $1,400,000 and would need to be replaced in 24 years. There would be additional refurbishing costs of $80,000 every five years and regular annual maintenance costs of $17,000 for the existing bridge. There would be no toll to use the refurbished bridge. If MARR is 10% per year, what is the maximum acceptable cost (X) of the new bridge? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10per year. Choose the correct answer below. .... A. The maximum acceptable cost of the new bridge is $1,668,576.…

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Solve A and B. Don’t use excel

don't use excel also can you show me maths solving with equation by hand please....

Plz asap

Q-H

1. Your company wants to bring outdoor ice-skating to Palm Springs, California and must choose between two refrigeration machines that do the same job but have different life spans. The two machines have the following investment and operating costs in each year: Year 0. 1 3 Machine A $10,000 $1,100 $1,100 & Replace Machine B $12,000 $1,100 $1,200 $1,300 & Replace These costs are expressed in real (inflation adjusted) terms. Assume a 5 percent real discount rate. Note that machine A would operate in periods 1 and 2 only, while mạchine B would operate in periods 1 through 3. A. Explain whether the concept of Equivalent Annual Cost (EAC) would be useful for evaluating these two investments. In your answer please define EAC. B. As the company's financial manager, if you had to buy one or the other machine, which one would you buy. Why? C. Now suppose you have an existing machine that you can keep operating for one more year only, but it will cost $2,500 in repairs and $1,800 in operating…

Sh14 Please help me.  Solution

CengageNOWv2| Online teachin X N2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=D&inpro... Differential Analysis Involving Opportunity Costs On July 1, Coastal Distribution Company is considering leasing a building and buying the necessary equipment to operate a public w Alternatively, the company could use the funds to invest in $149,100 of 6% U.S. Treasury bonds that mature in 16 years. The bond at face value. The following data have been assembled: Cost of store equipment $149,100 Life of store equipment 16 years Estimated residual value of store equipment $18,600 Yearly costs to operate the warehouse, excluding depreciation of equipment $55,900 Yearly expected revenues-years 1-8 75,600 Yearly expected revenues-years 9-16 70,100 Required: 1. Prepare a differential analysis as of July 1 presenting the proposed operation of the warehouse for the 16 years (Alternative 1) a investing in U.S. Treasury bonds (Alternative 2). If an amount is…

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q5) can a get a detailed explanation of the answer to this question ?

Please I humble request don't copy answer from any sites plz use math tools no handwriting I give positive rating 2

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S7.37 Tim Smunt has been asked to evaluate two machines. After some investigation, he determines that they have the costs shown in the following table. He is told to assume that: 1. The life of each machine is 3 years. 2. The company thinks it knows how to make 12% on investments no more risky than this one. 3. Labor and maintenance are paid at the end of the year. MACHINE A MACHINE B $10,000 2,000 4,000 2,000 $20,000 Original cost Labor per year Maintenance per year Salvage value 4,000 1,000 7,000 Determine, via the present value method, which machine Tim should recommend.

can you answer this? thank you!

CengageNOWv21 Online teachin x ngagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker%3D&takeAssignmentSessionLocator%3D&inpro... Gull Corp. is considering selling its old popcorn machine and replacing it with a newer one. The old machine has a book value of $5,000, an useful life is five years. Annual costs are $4,000. A high school is willing to buy it for $2,000. New equipment would cost $18,000 with ann costs of $1,500. The new machine has an estimated useful life of five years. Prepare a differential analysis. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential Analysis Continue with (Alternative 1) or Replace (Alternative 2) Old Machine Replace Old Machine Differential Continue with Old Machine Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues: Proceeds from sale of old machine Costs: Purchase price Variable manufacturing costs (5 years) Profit (loss) ould the machine be replaced? %24 %24 %24

show all excel formulas/ work answering the following:

Vijay