A company is going to change all light bulbs of its buliding. The initial cost is 57000 . all bulbs has been replaced at the same time. what if the bulbs have been replaced during 5 yrs period. Inflation rate is 3 percent. energy saving per yr is 6000 dollars. (compare replacement at the same time to the period of 5 yrs

Q: Fruit Packers uses packing machines to prepare its products for shipping. Each machine  costs…

A: Equivalent annual cost (EAC) Equivalent annual cost (EAC) is an annual cost to own, maintain and…

Q: Our new computer system cost us $164,800. We will outgrow it in five years. When we sell it, we will…

A: A computer is considered an asset for a business since it adds economic value to the company's…

Q: It’s time to get a new laptop that is $2500. If you save up for it each month it will take one year…

A: Given information: Purchase price = $2,500 i.e. the amount which is required at the end of one year…

Q: A machine costs $10,000, has an estimated life of 10 years and a scrap value of $1500. Assuming no…

A: Annual sinking funds are created to accumulate money required in the future requirements of the…

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 precision lathe costs $20,000 and will cost $30,000 a year to operate and maintain. If the…

A: Equivalent annual cost is a financial metric used to calculate the equivalent yearly cost of owning,…

Q: Our new computer system cost us $114,400. We will outgrow it in five years. When we sell it, we will…

A: The after tax proceeds from the asset can be found by using following formula:The book value at the…

Q: What is the simple payback on this improvement? (Ignore Discount Rate) A silicon wafer manufacturing…

A: Present Value is the sum of future cashflows discounted at appropriate discounting rate

Q: What is the equivalent annual cost of buying and maintaining the truck if the discount rate is 10%?

A: The equivalent annual cost is used to assess the total cost of various financing or investment…

Q: A new gizmo costs $9050. Maintenance costs $6907 per year and labour savings are $1900 per year.…

A: The payback period is a financial metric that is commonly used to determine how long it will take…

Q: Champion Bakers uses specialized ovens to bake its bread. One oven costs $1000,000 and lasts about 4…

A: First cost (X) = $1000000 Annual cost (A) = $10000 n = 4 years r = 17%

Q: A new gizmo costs $10 000. Maintenance costs $2000 per year and labour savings are $6567 per year.…

A: The payback period refers to the period that is required to recover the initial cost. With the help…

Q: A new transmission in your truck will cost $5,000. Luckily, it should reduce maintenance expense by…

A: Profitability Index is a financial tool which tells whether an investment should be accepted or…

Q: A new transmission in your truck will cost $9500. Luckily it should reduce maintenance expense by $…

A: Given Data: Year Cash Flows131502315033150431505315063150731508315093150103150Initial…

Q: about 5 years before it needs replaced. The operating cost per machine is $16,000 a year. What is…

A: We can determine the EAC by converting the cost of the machine into an annual periodic cost and…

Q: You expect that you will need to replace your furnace in 4 years at a cost of $15,228. How much must…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Econo - Cool air conditioners cost $390 to purchase, result in electricity bills of $168 per year,…

A: Equivalent annual cost is equivalent cost that includes the cost of purchase and also the cost of…

Q: You have purchased a canning machine for $7,000. You expect the machine to save your company $3,775…

A: The profitability index (PI) is a financial metric used to evaluate the attractiveness of an…

Q: NPV

A: Formula to calculate the NPV is: NPV = Cash flows/(1+i)^n - Initial investment

Q: A person is planning to purchase a car. A new car is costing rupees 3 lacs. The resale value of the…

A: Fixed assetsThe assets available in the company for the use of operating activities and used for a…

Q: t’s time to get a new laptop that is $2500. If you save up for it each month it will take one year…

A: monthly payment formula: pmt=p×rm1-1+rm-m×n where, p = principal amount r = rate of interest m =…

Q: Our new computer system cost us $132,400. We will outgrow it in five years. When we sell it, we will…

A: CCA stands for Capital Cost Allowance and refers to the method of depreciation which is used for tax…

Q: suppose a new car today costs $18,000. If annual inflation for cars over the next 10 years is 3.2%,…

A: given, PV = $18000 N = 10 years R = 3.2%

Q: Our new computer system cost us $172,000. We will outgrow it in five years. When we sell it, we will…

A: Capital cost allowance -The Canadian Tax permits an annual deduction known as the capital cost…

Q: A tech company still focuses on a relatively small geography, but deliveries have increased, so the…

A: In case of not payable it is not an instalment payment where principal is paid equally       Not…

Q: construction firm can achieve a $15,000 cost savings in Year 1, increasing by $3000 each year for…

A: Using present value and PMT function in Excel

Q: Econo-Cool air conditioners cost $380 to purchase, result in electricity bills of $166 per year, and…

A: Variables in the question:Econo -Cool air conditioners:Purchase price=$380Electricity bills per…

Q: You are equipping an office. The total office equipment will have a first cost of2.0Mand a sal-vage…

A: Depreciation is the reduction in the value of asset due tonormal wear and tearEffluxion of…

Q: what is maintenance costs each year (from year 1 to year 5). ...

A: We can determine the maintenance costs per year using the formula below:Maintenance cost from year 2…