A newly-acquired equipment requires anannual maintenance costs of P10,000. If theannual maintenance cost us increased by20% each year every year for 10 years, whatis the estimated present worth of themaintenance costs if money is worth 15%?a. P 106,101.37P 100,122.22b.UC.d.P 101,234.56P 100,432.54

Present value of cash flow is that amount which shown the current price of future value at some…

Answered: 4. A newly-acquired equipment requires…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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6. A contractor can buy dump trucks for P800,000.00 each(surplus) or rent them for P1,189 per truck per day. The truck has a salvage value of P100,000 at the end of its useful life of 5 years. Annual cost of maintenance is P20,000.00. If money is worth 14% per annum, determine the number of days per year a truck must be used to warrant the purchase of the truck. A. 200. B. 199 C. 145 D. 102
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USE MANUAL SOLUTIONA machine has a first cost of ₱100,000 and salvage value of ₱10,000 after 10 years. The annual maintenance of the machine is ₱4,000. If interest rate is 10%, find the annual cost of the machine. A. ₱17,000.34 B. ₱19,647.08 ( ANSWER) C. ₱21,083.56 D. ₱32,074.56
ı think we have to equalize their economic lives Which investment is more suitable to be decided for the new facility to be established? Interest is 50% (0.5) per annum for X: Investment amount: 10.000 TL Economic life: 4 years Salvage value: 2.000 TL Annual maintenance expense: 500 TL Raw material expense: 20 TL Labor expense: 15 TL for Y: Investment amount: 20.000 TL Economic life: 5 years Salvage value: 5,000 TL Annual maintenance expense: 750 TL Raw material expense: 18 TL Labor expense: 12 TL for Z: Investment amount: 40.000 TL Economic life: 6 years Salvage value: 10,000 TL Annual maintenance expense: 1.000 TL Raw material expense: 15 TL Labor expense: 7.5 TL.
USE MANUAL SOLUTION A machine has an initial cost of ₱50,000 and an annual maintenance cost of ₱6,000. Its useful life is 10 years and salvage value are ₱5,000. The annual benefit from purchasing the machine is ₱25,000. The effective annual interest rate is 10%. What is the machine’s benefit to cost ratio? A. 1.22 B. 1.83 C. 2.03 D. 2.43 ( ANSWER )
Expenses for water treatment plant are expected to be $220,000 now, $110,000 in year one, and $10,000 per year thereafter forever. At an interest rate of 8% per year, the annualized cost of this permanent water treatment starting at the end of year 1 forever is nearest to: А. $198,890 В. $16,800 С. $254,160 D. $15,910
2. It is rëquired to select one of the three machines. Which machine should be selected, based on the present worth comparison at an interest rate of 12% per year, if the costs are shown below? Туре X 7,650 1,200 Туре Y 12,900 900 2,000 Туре Z 17,000 750 First cost, $ Maintenance cost,.( $ lyear) Salvage value, ( $) Economic (years) 4,000 12 4
4yr
13. ABC manufacturing wants to purchase a new machine that is expected to save $12,000 in annual operating and maintenance costs for the next five years. The machine's price is $32,000, and the installation cost is $3500. With a salvage value of $5,000 and an interest rate of 17%, what is the discounted payback period? a. 4 years b. 6 уears с. 5 years d. 3 years
How do you solve for the value encircled? Show step by step.
Salalah Methanol Co. has bought some new machinery at a cost of 1250000 OMR. The impact of the new machinery will be felt in the additional annual cash flows of 375000 OMR over the next five years. What is the payback period for this project? If their acceptance period is three years, will this project be ?ассepted اخترأحد الخیارات a. 2.82 years, yes O b. None of these O c. 2.53 years, yes d. 3.33 years, no O e. 3.84 years, no O

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