6. A construction firm can achieve a $15,000 cost savings in Year-1 and increased by $2,000 each year for the next 5 years by converting their diesel engines for biodiesel fuel. At an interest rate of 15%, what is the equivalent annual worth (A) of the savings? [4]
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![6. A construction firm can achieve a $15,000 cost
savings in Year-1 and increased by $2,000 each
year for the next 5 years by converting their diesel
engines for biodiesel fuel. At an interest rate of
15%, what is the equivalent annual worth (A) of the
savings? [4]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Febd57753-77a2-4d5e-8b8e-ab91d7ce9926%2F69c9d0d3-e8cc-4c17-b315-8e861c3661b3%2F6ppncjk_processed.jpeg&w=3840&q=75)
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- 1. What is the future worth 6 years from now of a present cost of P175,000 to Corning, Inc. at an interest rate of 10% per year?A construction firm needs a new small loader. It can be purchased for $20,000. The firm expects the loader to have a salvage value of $6,000 after 7 years. The maintenance cost will be $1,400 each year. The firm's interest rate is 1% per year. Compute the Equivalent Uniform Annual Worth (EUAW).3. A homeowner may upgrade a furnace that runs on fuel oil to a natural gas unit. The investment will be $2,500 installed. The cost of the natural gas will average $60 per month over the year, instead of the $145 per month that the fuel oil costs. Assume end-of-year cash flows for the energy costs. Assume energy costs increase 3% per year. If the interest rate is 9%, compounded annually, how long will it take to recover the initial investment?
- A company is considering an investment that will cost $759,000 and have a useful life of 6 years. The cash flows from the project are expected to be $450,000 per year in the first two years then $170,000 per year for the last 4 years. If the appropriate discount rate is 16.0 percent per annum, what is the NPV of this investment (to the nearest dollar)? Select one: O a. $316870 O b. $321617 O c. $1834870 O d. $4390452.) LandMING has borrowed $8 Million to implement a new production line in its Dallas metal plant. If the interest rate on the loan is 10% per year (on unrecovered balance) for 5 years, what is the amount of interest payable for year 2?A construction firm can achieve a $15,000 cost savings in Year 1, increasing by $3000 each year for the next 5 years, by converting their diesel engines for biodiesel fuel. At an interest rate of 15%, what is the equivalent annual worth of the savings?
- • EXAMPLE: A new machine will be purchased for 150000 TL and sold for 30000 TL at the end of 5 years. An annual income of 75000 TL will be provided. Expected rate of return on investment • 40% Determine annual depreciation amount Analyze the pre-tax economics of the investment If • the income tax rate is 25%, analyze the after-tax economics of the investmentZwango Plus Manufacturing expects that fixed costs of keeping its Zephyr Hills Plant operating will be $2.1M this year. If the fixed costs increase by $125,000 each year, what is the EUAC for a 15-year period? Assume the interest rate is 10%.7. What is the minimum interest rate of a company should accept, if it is support and finance an energy saving program that saves P20,000.00 per year over its useful life of 10 years, if the initial cost is P112,000.00? a. 10% b. 12 % c. 17% d. 20%
- 0. A $45,000 investment in a new conveyor system is projected to improve throughput and increasing revenue by $14,000 per year for five years. The conveyor will have an estimated market value of $4,000 at the end of five years. Using NPV with a MARR of 12%, is this a good investment?A company buys a printing machine for 21,000. It is expected for that machine to generate 3000 dollars in the first year, 5000 dollars in the second year, and 15000, in the third year. What is the NVP for the project if the interest rate is 10.5% compounded semi-annually? A. $ + 770.56 B. $ + 460.32 C. $ -770.56 D. $ - 460.32Machine X will produce cost savings of $6,000 per year for four years; machine Y will produce cost savings of $4,000 per year for six years. If the interest rate is 10% compounded annually, what are the savings for both of these machines in terms of their present value in cost savings?
