7. Find the present worth. Machine A Machine B P 11,000 P 18,000 P 3,100 First Cost Annual P 3,500 Operating Cost Salvage Value P 1,000 P 2,000 Life 6 years 9 years Rate (i) 15% 15%

Q: The asset has FC of 10 000 000 and is expected to last in 10 years with the salvage of 800 000.…

A: Depreciation as per Sum of years Depreciation  First years  = Sum of digits * ( Cost of asset -…

Q: The cost of money is 10% per year. Machine P Machine Q Initial cost, $ -35,000 -66,000 Annual cost,…

A: The present worth means the present value of all the future cash flows of the asset. In the present…

Q: View Policies Current Attempt in Progress A project that cost $63000 has a useful life of 5 years…

A:

Q: When comparıng the two machines shown below using Capital Recovery method if MARR is 8%? What is the…

A: capital cost recovery can be calculated by using this equation  Capital recovery cost =First…

Q: IK Aw equipment is being consideredaloal cmpany ata and maintennce costs of this eipment are valur…

A: EUAC is the annual cost of owning and maintaining the asset which is determined by dividing the net…

Q: Maintenance costs for a machine with an expected 10-year life are estimated to be $1,700 each year…

A: Lets understand the basics. Present worth calculation is a present value of the all the future…

Q: Q4. Evaluate to total present worth of all the cash-flow of machine XYZ for an interest rate of 10%…

A: We determine the total of the present value of all future expenditures and benefits using the…

Q: MARR = 9.00% This machine has a 9 year economic service life after which it will have a $13,098…

A: MARR = 9℅ Salvage Value = 13,098 Operating costs in first year = 6433 Annual increase = 640

Q: 19200

A: Solution: The correct option is c.19200  Detailed explanation : Original cost of Machinery is 400000…

Q: 10. Copmare the following 2 alternatives using the method of your choice - rate is 4% per year.…

A: The process of analyzing and evaluating any project/investment's feasibility and profitability is…

Q: Purchase price Expected useful life Scrap value Depreciation per year Minimum required rate of…

A: The payback period is the period in which the investment is recovered completely. It is calculated…

Q: QUESTION 3 For the below ME alternatives, which machine should be selected based on the AW analysis.…

A: NPV can be calculated by following function in excel =NPV(rate,value1,[value2],…) + Initial…

Q: 7. A car costs book value

A: Reducing the value of assets over a period of time is known as depreciation. It shows the useful…

Q: Cost of equipment: $80,000 Expected annual cost savings to be provided by new equipment: $32,000…

A: NPV  is defined as the sum of the present values of all future cash inflows  less the sum of the…

Q: Which machine would you recommend given the following information and interest rate is 10%? New Used…

A: The question is based on the concept of Cost Accounting.

Q: An asset has a first cost of $12,000, an annual operating cost of $3500 and a salvage value of $5000…

A: Given information: Initial cost=$12,000 Annual cost=$3500 Salvage value=$5000 Life=7 years Interest…

Q: what is depr exp

A: Depreciation under double declining method = Cost of asset * Double declining  depreciation rate

Q: NITIAL COST R100 000 R110 000 EXPECTED ECONOMIC LIFE 5 YEARS 5 YEARS EXPECTED DISPOSAL/RESIDUAL…

A: Payback period can be defined as the time taken to recover the initial capital invested in a…

Q: Given the two machines' data Machine A Machine B First Cost P8,000.00 P14,000.00 Salvage value…

A: Equivalent annual cost refers to the annualized cost of owning, operating and maintaining an asset…

Q: QUESTION 3 For the below ME alternatives, which machine should be selected based on the AW analysis.…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Q3: The following table gives the operation cost, maintenance cost and salvage value at the end of…

A: Answer -    Equivalent annual cost (EAC) -  Equivalent annual cost (EAC) is calculated by adding the…

Q: you are given the following information about a machine : Investment costs $ 200,000 Salvage Value $…

A: Capital recovery analysis is done before the purchase of a new machine or an asset. Capital recovery…

Q: In comparing the machines on a present worth basis, the present worth of machine P is closest to:a.…

A: NPV is the net present value of projected cash flow that is calculated by subtracting all the…

Q: Determine the economic useful life of a piece of equipment whose initial cost is $10,000 and its…

A: EAC or equivalent annual cost is the annual cost of owning and maintaning the asset over its entire…

Q: Determine the capitalized cost of a large-format printer that has a first cost of P1.20 million an…

A: Capitalized Cost- Capitalized cost is defined as an expense that is capitalized, i.e. added to the…

Q: 6. Compare the following three altermatives by the IRR method, given MARR of 6%/year. First find if…

A: NPV= Present value of all net cash inflows.

Q: 25 A machine costs R20 000. Depreciation will be written off at 20% per annum. Which one of the…

A: Given: Cost =R 20000 Depreciation rate =20%

Q: Given the two machines' data Machine A Machine B First Cost P8.000.00 P14,000.00 Salvage value…

A: Equivalent uniform annual Cost=Initial CostPresent Value Annuity Factor+Annual Cost

Q: Compare the following two altematives by the IRR method, given MARR of 6'year First find if they are…

A: Here, MARR is 6%

Q: Problem 3: A certain machine costs P 40,000, has a life of 4 years and salvage value of P 5,000. The…

A: Formula: Depreciation per unit = ( Asset cost - Salvage value ) / Total estimated Units. Deduction…

Q: For the below ME alternatives, which machine should be selected based on the AW analysis. MARR=10%…

A: AW = -19978.98

Q: 2. Using a 8% interest rate, determine which device, if any, should be selected based on net present…

A: Computation:

Q: A company purchase a piece of manutacturing equipment for rental purposes. The expected annual…

A: The current value of a projected amount of money or stream of cash flows with a predetermined rate…

Q: QUESTION 3 Capitalized cost is an application of perpetuity. It is the sum of the first cost and the…

A: It is given that:machine cost – P 300,000 Life – 15 yrs Annual cost – P 5000 Salvage value – P…

Q: Given the two machines' data Machine A Machine B First Cost P8,000.00 P14,000.00 Salvage value…

A: Equivalent uniform annual cost refers to cost of owning, operating and maintaining an asset over its…

Q: you are given the following information about a proposed project : Investment costs $15,000 Annual…

A: NPV is a capital budgeting technique that is used to determine whether a project is feasible or not.…

Q: 4. A company is considering one of the following 3 mutually exclusive alternatives. Project Initial…

A: Equivalent annual cost is the cost of operating and maintaining an asset annually. It is also called…

Q: Using equivalent uniform annual cost method, determine the value of alternative A and alternative B:

A: Value of alternative A, using equivalent uniform annual cost method:

Q: What is the Present Worth Value for the second alternative if you are going to alternatives on a…

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

Q: Q3: The following table gives the operation cost, maintenance cost and salvage value at the end of…

A:

Q: For the below ME alternatives, which machine should be selected based on the AW analysis. MARR=10%…

A: AW means that all income and disbursements (irregular and uniform) are converted into a single…

Q: Input area: Installation cost Pretax salvage value Operating cost per year Initial NWC Tax rate…

A: