A company expects the cost of equipment maintenance to be $5,000 in year one, $5,500 in year two, and amounts increasing by $500 per year through year 10. At an interest rate of 10% per year, the present worth of the maintenance cost is nearest to A) $38,220 B) $46,660 c) $51,790 D $42,170

Q: 13) A trucking company evaluates its fleet of vehicles. According to its balance sheet, a three- van…

A: Factors used can be found in a compound interest table. (A/P, 15%, 6)=0.2642(A/G, 15%, 6)=2.097

Q: : Use the appropriate factor(s) from the tables provided.

A: A recurrent payment of a certain amount made annually is referred to as an annual payment. Usually…

Q: A company plans to invest $11,000 dollars are new equipment to reduce operating costs. It is…

A: Data given: Initial investment=$11000 Annual savings=$9000 N=5 year R=6%     Formula to be used:…

Q: Revenues generated by a new fad product are forecast as follows:   Year Revenues 1 $26,145 2…

A: Depreciation = ( Cost - salvage value ) / Useful Life Depreciation = ( 40000 - 0 ) / 5 Depreciation…

Q: GHA Co. made an investment of $10,000 and from this it will receive $800 annually for the next 18…

A: The present value of the annuity factor is used when there is an equal series of cash flows and the…

Q: Finnegan Company plans to invest in a new operating plant that is expected to cost $762,500. The…

A: Formulas that are used:-

Q: A company purchase a piece of manufacturing equipment for an additional income. The expected income…

A: Given information,Purchase price: Useful life:  yearsExpected income:  per semesterExpenses:  per…

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: A property is expected to have net operating income during the first year of $50,000, which is…

A: For the calculation of the estimated value of the property present value of the Annual cash flow…

Q: #1: An investment will cost $10,000 today for equipment plus expenses for labor and materials at a…

A: Discounted payback period is a capital budgeting tool. Here we look at the time period that it takes…

Q: A company is considering the purchase of equipment that costs $120,000 and has an estimated residual…

A: The average rate of return (ARR) can be calculated using the formula:𝐴𝑅𝑅=Average Annual…

Q: company is considering buying a CNC machine. In today's dollars, it is estimated that the…

A: Annual equivalent is the uniform annual payment that will be paid for uneven cash flow that is paid…

Q: A coal mine is expected to produce coal for 15 years. Coal production in the first year is estimated…

A: Life = 15 Years First year sale = 30000 tons Annual decrease = 1000 tons Price per tonne = $ 100…

Q: A manufacturer is considering investing in a new production line that requires an initial capital…

A: This can be solved using the Hit and Trial method to find the IRR. Under this method, we calculate…

Q: A company has just spent $189,000 in purchase of new equipment for its production business. This…

A: The present worth of an investment refers to the current value of all future cash inflows and…

Q: A parcel of land can be leased for a period of 10 years. Initial development costs for clearing,…

A: Initial cost (C) = P 250000 First year revenue (R) = P 22000 Growth rate (g) = 5% n = 10 years r =…

Q: Hydrex Mechanical Products plans to set aside $160,000 now for possibly replacing its large…

A: (a) (a) tabulated factors: F = P* (F / P, in, n) F = $160,000 * (F/P), 0.04,14) F = $160,000 *…

Q: The Highway Department expects the cost of maintenance for a piece of heavy construction equipment…

A: The value of money varies with time, therefore the time value of money considers the worth of the…

Q: Charlie Corp. is purchasing new equipment with a cash cost of $100,000 for the assembly line. The…

A: Present value = $100,000Annuity = $22960Period = 6 years

Q: A contractor desires to replace a unit of equipment in 8 years and expects to need $300,000 (at that…

A: A= P(1+r/n)nt   A= Future Value= 3,00,000 P= Initial amount r= Interest Rate n= No. of compounding=…

Q: Suppose an industrial building can be purchased for $2,500,000 and is expected to yield cash flows…

A: Internal rate of return is the rate at which present value of cash inflows is equal to initial…

Q: Revenues generated by a new fad product are forecast as follows: Year Revenues $45,000 1 2 35,000 3…

A: let's solve this step-by-step:a. Initial Investment in the Product:The initial investment includes…

Q: A property worth $16 million can be refinanced with an 85% loan at 9.5% over 20 years. The balance…

A: We need to find the incremental cost of financing. For this, we need to know the incremental cash…

Q: A building is expected to require $1,000,000 in capital improvement expenditures in five years (60…

A: A building is expected to require (T) = $1,000,000In the duration (t) = 60 months.In 1st month a is…

Q: The cost to manufacture a firing system component used in a rapid deployment missile defense system…

A: F = $20,000,r=0.10 (10% interest rate per year in decimal form),n=52 (compounded weekly, so there…