4. Calculate the present worth of a machine which costs $ 95000 initially and will have a $ 18000 salvage value after 11 years . The operating cost is $ 9000 at the end of yearl and amounts increasing by 10 % each year . Use an interest rate of 16 % per year compounded quarterly .

Q: Determine Annual worth values

A: Annual worth (AW) method is for evaluating the alternatives or investment proposals. It is the…

Q: An equipment is expected to cost PKR 200,000 to be used for 3 years, and to have an annual operating…

A: Annual worth refers to the estimated income and expenses that can be incurred during the life cycle…

Q: A machine costs $5240 and produces benefits of $1000 at the end of each year for 8 years. Assume an…

A: The Payback period is among the of the techniques of capital budgeting that do not take into…

Q: a. Compute the ATCF for the 5-year period using the tabular method (Show YEAR, BTCF, DEPRECIATION,…

A: Depreciation represents the estimated reduction in value of a fixed means within a financial time.It…

Q: Find the time required for an investment of 5000 dollars to grow to 6300 dollars at an interest rate…

A: 1. Future Value = Present Value * (1 + Interest per Compounding Period)^# of Periods Investment =…

Q: A piece of machinery may be acquired by making an immediate payment of $250,000 and payments of…

A: Net present value is a capital budgeting metric used to evaluate the value of the net cash flows in…

Q: Applegate Industries is planning to expand its production facility in a few years. New plant…

A: Future Value = Present Value x Future Value Factor

Q: what is the equivalent annual cost of the maintenance?

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: at the end of every 6 months starting 5 years after its purchased d. maintenance will be needed for…

A: In this we need to convert quarterly interest into semiannual interest rate and find out the payment…

Q: The maintenance costs of a new boiler are estimated as follows: P 600 per year for the first 3…

A: As per question , we are provided : Future value of all maintenance = P20000 Compounding rate = 6%…

Q: The annual maintenance cost of a generator is P834 after 1 year and it is estimated to increase by…

A: Annual Maintenance Cost = 834 End of period cost structure Increase in annual maintenance costs =…

Q: 2. Gigi buys a car for P250,000 down payment and 36 deferred semi- annual payments of P25,000 each…

A: Present value of investment = down payment + loan amount. Loan amount = present value of all loan…

Q: You are considering the following 3 investments, each with an upfront cost of $45,000 today. Which…

A: The present value of the future money to be received in the future based on the interest rate and…

Q: An investment has infinite life. Its annual cost is $1400 for the first five years and $1600 per…

A: The provided information are: Working Note: Annual cost for the first five years = $1400 Annual cost…

Q: An equipment is expected to cost 200,000$ to be used for 3 years, and to have an annual operating…

A: Annual worth of a project means the amount which is going to be generated by the project on an…

Q: A machine has a useful life of 10 years. It requires a semi- annual operating cost of $3,000 for the…

A: Useful life = 10 yearsSemi-annual operating cost = $3000Number of years = 4Growth rate = 6%Interest…

Q: A construction equipment with no salvage is to be replaced at the end of 12 years from now at a cost…

A: The replacement value of machine (i.e., 800,000) is the future value of annuity at 15% compounded…

Q: A machine has 20 years of life. The income = %3D 15000 for the first year decrease by 250 each year…

A: In this question present value is to be find out. Given that the machine depreciates by $250 each…

Q: Find the capitalized cost of a present cost of P800,000, annual costs of P55,000, and periodic costs…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: 6. Find the cash value of a condominium unit if a Php750,000 down payment and a monthly amortization…

A: The cash value of an asset refers to its present value which is the discounted value of all future…

Q: Find the present value of an investment in plant and equipment if it is expected to provide annual…

A: Formula: Present value of an investment in plant and equipment = [ Annual earnings x Present value…

Q: Village Hardware expands its business at a cost of $20,000. They expect that the investment will…

A: future value = present value*(1+rate)n

Q: 4. Determine the equal, end of period , annual worth of a process which will involve an initial…

A: Initial Outlay = 95000 Cost at end of year 1 = 11000 Annual Increase in = 1500 Time Period = 14…

Q: n equipment has a maintenance cost of P20,000 a year for two years, increased by P40,000 at the end…

A: In this we have to find out the present value and find out the semi annual payment for that.

Q: An annual maintenance cost of a generator is P1000 after two years and it is estimated to increase…

A: The question is based on the concept of Financial Accounting. As the cost is increasing by 10% per…

Q: A Services company is projecting that demand for its services will rise considerably the next three…

A: Leasing help the company to use the asset immediately without buying it at a huge cost. On the other…

Q: A project has estimated annual net cash flows of $147,000 for 4 years and is estimated to cost…

A: For a given project, NPV and the present value index have to be found. The initial investment is…

Q: Find the present value of an investment in plant and equipment if it is expected to provide annual…

A: Present value can be defined as how much is the worth of the future sum of money at present provided…

Q: Calculate the present value of the cash savings: Samson Inc. is contemplating the purchase of a…

A: INTRODUCTION: In accounting, present value is the sum of future cash balances discounted to the…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.