1. Disregarding the revenue, what is the future value of the machine cost? 2. What is the present value of the revenue in its 10 years of useful life? Is it worth the investment compared to the machine cost? 3. What is the future value of the revenue in its 10 years of useful life? is it worth the investment compared to the future value of the machine cost?

Q: Savings of $5600 per year can be achieved through either a $14 000 machine (A) with a seven-year…

A: NPV is calculated below.

Q: what is the capitalized cost of the machine with an initial cost of 10,000 and an infinite life? the…

A: Capitalized cost is that will continue to occur during the life of equipment.

Q: every year for 4 years required Return is 15% the required. Payback is 3 years. Please use formula.…

A: In order  to make capital budgeting decision considered different area of financial decision and…

Q: A machine costs £15,000 and its useful economic life is 5 years. After 5 years, the machine’s scrap…

A: GIVEN, cost = 15000 n=5  net cash inflow = 5000 machine scrap = 3000

Q: purchase of a new copy machine with an initial investment cost of $150,000 and the center expects an…

A: The payback period is the amount of time it takes to recoup the cost of your investment. In layman's…

Q: "It is estimated that a certain piece of equipment can save $22145 per year in labor and materials…

A: Annual saving (A) = $22145 r = 15.96% n = 6 years Let X = Justified price today

Q: Blossom Company is considering a long-term investment project called ZIP. ZIP will require an…

A: The question is related to Capital Budgeting. The Cash Payback Period is the length of time required…

Q: A new process for manufacturing lead pencils will have a first cost of $35,000 and annual costs of…

A: Given, Initial Cost = $35,000 Annual cost = $17,000 Annual extra income = 22,000

Q: The investment in a new product requires a capital expenditure of € 45,000.-. The economic life time…

A: The minimum price which ensures the profitability will be the price at which the NPV of the project…

Q: Suppose that a fim with a 12% required rate of retum is faced with the problem of replacing an…

A: Equivalent Annual Annuity (EAA) is a method of evaluating projects with different life durations.

Q: a. What should be your material cost for a project with MARR of 25% to make it into marginally…

A: A project is said to be viable if the sum of the present value of all cash flows is greater than…

Q: Your company is considering the purchase of a $20,000 machine, assuming a five-year useful life and…

A: The objective of this question is to calculate the net present value (NPV) of the machine. The NPV…

Q: A new heat exchanger will cost $220,000, and it will save $50,000 annually. After 10 years it will…

A: Cost of the new heat = 220000 Savings = 50000 annually Year term = 10 Interest rate = 10% Inflation…

Q: You are considering investing RM61000 in new equipment. You estimate that the net cash flows will be…

A: Annual capital cost is nothing but depreciation calculated by the straight-line method. The salvage…

Q: a company can buy a machine that is expected to have a three-year life and a 30,000 salvage value.…

A: Net Present Value: It is the present worth today of the project having the initial cost and annual…

Q: EXAMPLE: A new machine will be purchased for 150000 TL and sold for 30000 TL at the end of 5 years.…

A: In business or financial contexts, cash flow is defined as the difference between total cash inflows…

Q: You are considering investing RM60000 in new equipment. You estimate that the net cash flows will be…

A: NPV is the net current worth of cash flows that are expected to happen in the future.

Q: If the cost of the machine is 2000$ , i = 9% for ten year then the present worth will be(p). what is…

A: Given, I = 9% N = 10 FV = 2000   We will use the Present value formula to determine the present…

Q: A company is considering a machine with one that will save P 50,000 per year for five years in cash…

A: NPV means PV of net benefits which will arise in the future from the project. It is computed by…

Q: is estimated that a certain piece of equipment can save​$19,000per year in labor and materials…

A: Above question can be solve with help of present value of ordinary annuity formula Formula PV = P…

Q: A company buys a printing machine for 21,000. It is expected for that machine to generate 3000…

A: Net present value refers to the difference between the cash inflows and outflows during the year.…

Q: SM wants to buy new equipment that has costs 200,000 pesos. This new equipment will give them 90,000…

A: Cost of new Equipment is 200,000pesos Revenue from new equipmrnt is 90,000pesos Operating Cost per…

Q: If you insulate your office for $16000 you will save 1600 a year in heating exp. these savings will…

A: The provided information are: Initial Investment = $16000 Saving = $1600

Q: What annual cash savings would be needed in order to satisfy the company's 12% required rate of…

A: Initial cost (PV) = P 50,000 Life of project (n) = 5 Years Salvage value (SV) = P 10,000 Annual…

Q: 3. Calculate the internal rate of return for a machine that costs $550,000 and provides annual…

A: IRR decision criteria facilitates financial analyst to arrive at best opinion after computing IRR.…

Q: An asset costs $7 million today. It can generate a $2 million income every 6 years, starting from…

A: An investment's profitability or success over a given time period is assessed using the annual rate…

Q: What is the ARR of a project investment of 1 million pesos of machinery with a life of 10 years and…

A: Accounting Rate of Return (ARR) = Average Net Profit / Average Investment

Q: project's discounted payback period?

A: Discounted Payback Period: Discounted Payback period is the period of time in which the investment…

Q: will save $1,400 a year in enses. These savings will What is the NPV of the inve en the cost of…

A: Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period (PBP)…

Q: pany that manufactures magnetic flow meters expects to undertake a project that will have the cash…

A: Annual equivalent cost is that cost that would replace all cost into single annual equivalent cost…

Q: A machine shop will require a fixed capital investment of ₱12,000,000andan estimated working capital…

A: Given, Fixed capital investment (FCI) = P12,000,000 Working capital  (WC)             = P2,250,000…

Q: Cecil company is considering the of a new machine. The machine cost $227,500 and will generate a…

A: Machine cost (C) = $227500 Cash inflow (A) = $35000

Q: 4. An important piece of machinery has annual maintenance costs of $5,000, increasing by $500 per…

A: Present equivalent value According to present value, a sum of money is worth more today than it will…

Q: New manufacturing equipment costs $225,000, salvage value is $25,000, and average annual earnings of…

A: a) Average annual rate of return = Average Annual Earning per year / Investment value

Q: A is considering the purchase of two alternative machinery. Machine 1 has an expected life of 5…

A: 1) Computation of Net present value of both the machine in order to determine which is acceptable:

Q: The annual maintenance costs of a tunnel, which is considered to have an infinite life, are worth…

A: Capitalized cost can be defined as that cost which is regularly added to the original cost of a…

Q: The machine bought for P60, 000 is expected to last for 30 years. If the book value after 20 years…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…