A COMPANY IS STUDYING TO UPGRADE THEIR EQUIPMENT IN ORDER TO REDUCE COST BY P40,000.00 PER YEAR. COST OF EQUIPMENT IS P300,000.00, WITH SALVAGE VALUE OF P50,000.00 AND 7 YEARS LIFE. MAINTENANCE COST IS P6000.00/YEAR. WHILE THE MACHINE IS NOT IN USE, IT CAN ALSO EARN ANOTHER P10,000.00/YEAR IN RENTAL. IF THE CAPITAL CAN BE INVESTED AT 8% RETURN, IS THE COMPANY JUSTIFIED IN BUYING THE EQUIPMENT?

Q: A company is setting up a project to buld having Units in which the investment volume is estimated…

A: Introduction Initial investment = 20,000 ×100 dollar =2,000,0004 = 500,000 Cost = 50,000 annual net…

Q: Acad business that is considering its first project. The required equipment investment by the…

A: NPW (Net Present Worth) is another term for Net Present Value (NPV). It's a measure used in finance…

Q: an engineer knows that the supplier of their set-5100 laser surface metrology system used on one of…

A: Opportunity cost is the foregone cost/benefit that would have been received by choosing the foregone…

Q: in 2017 burger king successfully acquired popeye for 1.8 billion. if income from product sale is…

A: The rate of return is the rate that is used to measure the performance and efficiency of the…

Q: A ₱2500 computer system can be leased for ₱79 per month for 3 years. After 3 years, it can be…

A: In economics, present value refers to the current value of a future stream of cash flow. Net present…

Q: help please answer in text form with proper workings and explanation for each and every part and…

A: P 0 = $1000 (P/A, 10%, 5) + $10,000 (P/F, 10%,15)+ $10,000 (P/F, 10%, 30)= $1000 (3.7908) + $10,000…

Q: am. 132.

A: Step 1: Calculate the present value (PV) of annual costs for each machine over a 10-year life using…

Q: A firm is considering purchasing computers that will reduce annual costs by P40,000. The Computers…

A:

Q: The maintenance cost for furnaces will be $100,000 per year for 2 years, then changed to $120,000…

A: Cash flow:The net amount of cash or cash equivalents that enters and exits a business or financial…

Q: The following data for I and I are in format [I,J]. First cost in $: [-150,000, -250,000], Annual…

A: Cash flow:The sum of the total money is represented in the diagram. It represents the magnitude and…

Q: An existing bottling plant requires investing $50,000 per year starting next year for 10 years. The…

A: Annual investment = $50000 Time = 10 years Revenue per year = $30000 Increase in revenue per year =…

Q: What amount of money (in Php) invested today at 13.61% interest can provide the following…

A: P =14,785,889   Explanation:   P = A[(1 + r)^n - 1]/r is the formula for the present value of an…

Q: the maintenance costs associated with an investment are 100,000,000 for the first 10 years and…

A: To calculate the present worth of the annual disbursement, we need to consider the two different…

Q: For each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear…

A: We are going to calculate Equivalent uniform annual cashflow to answer this question.

Q: A company plans to modernize its facilities in 10 years. They estimate saving $9,110 per month if…

A: Given,  Estimated Savings per month = $9,110 Time Period=10 years Current O&M cost =$3682…

Q: f money is worth 5% per year, would it be a good investment to spend $100,000 for a new food…

A: Given: Interest rate=5% Initial spending=$100000 Saving=$12000 Number of years=7

Q: A company wants to automize its production line. Two main technology shortlisted after several…

A: Here we calculate the Present worth of Technology A by using the given information , so the…

Q: A firm is considering purchasing computers that will reduce annual costs by P40,000. The Computers…

A: The annual cost of holding and sustaining an asset is usually computed by multiplying the net…

Q: considering purchasing equipment that will reduce costs by $40,000. The equipment costs $300,000 and…

A: Present worth technique is one of a valuation method used in capital budgeting. It is computed by…

Q: ng two solar systems for her house water heating requirements. Her MARR is 20% per year. Alternative…

A: Given : MARR=20% Alternative P :  Fixed cost=$18000,Annual Operating cost=$4000,Salvage…

Q: The manager of a canned-food processing plant is trying to decide between two different labelling…

A: If a firm is confronted with two totally unrelated ventures, the determination of one of them keeps…

Q: A company purchased an equipment with the initial cost of 50000$. The annual operating cost of the…

A: Net present value (NPV) is the difference between the present value of cash inflows and the present…

Q: A coal-fired power plant has upgraded an emission control valve. The modification costs only $5,000…

A: Given that; Modification costs = $5000 Time period = 7 years Maintenance cost = $2000 for first year…

Q: The first cost of an electric rebar bender is P355,000 and a salvage value of P50,000 at the end of…

A: Answers Given data   PW = P355000 r=4.3% n=5

Q: H.w: Suppose P=$8000 for a time period of 10 years. (a) Simple interest rate 10% per year. Find l6.…

A: (i) With simple interest, annual interest is the same for all years. So, I6 = P x n x R = 8000 x 6 x…

Q: company can purchase a certain machine or rent one. IF purchased, the machine will cost $15,000 and…

A: Here we calculate the number of days the machine be justify its purchase by using the given…

Q: 20 years later, Alex is has $1,000,000 in his investment account. He plans to spend $200,000 each…

A: Amount in account = $1,000,000 The amount he will spend each year =$200,000 Interest = 10%

Q: A young engineer wishes to become a millionaire by the time he is 60 years old. He believes that he…

A: Investment in economics refers to the purchase of goods that are not consumed today but are used to…

Q: he renewal cost? he capitalized cost? al places, rounded off), if whole number no need to add .00

A: Capitalised cost can be computed by taking present worth of cash outlfow, adding present worth of…

Q: A small company wishes to set up a fund that can be used for technology purchases over the next 6…

A: The term “present value” is defined as the current value of all future cash flows which are…

Q: Company x uses machines to manufacture x. One machine costs $142,000 and lasts about 5 years before…

A: The rate of return in economics illustrates the percentage gain or loss on an inve­stment compared…

Q: Question (4): A plant has upgraded an emission control valve. The modification costs only $8000 and…

A: The present worth is the dollar worth of future payments as of today. Specifically, for a payment…

Q: Required information Eight years ago, Ohio Valley Trucking purchased a large-capacity dump truck for…

A: Present value refers to the current value of a future sum of money or stream of cash flows given a…

Q: A city is considering to buy a piece of land and constructing an office complex on it. Their…

A: Future worth refers to the compounded value of the cash flow of each project . More the value of…

Q: Please answer these 3 question and give proper solution and write the solution on a paper thank you…

A: The first question is asking for the future worth of the maintenance cost for 8 years given an…

Q: A construction firm is considering purchasing equipment that will reduce cost by P40,000. The…

A: C option . No is the right answer.   Pls see below. Cash flows from year 1 to 6 are savings of 40000…

Q: What is the significance of resource pricing? Explain how the factors determining resource demand…

A: "Since you have asked multiple question, we will answer only first question for you. If you have any…

Q: A coal-fired power plant has upgraded an emission control valve. The modification costs only $5,000…

A: Present value refers to the current value for a series of future sum of money or a series of cash…

Q: A coal-fired power plant has upgraded an emission control valve. The modification costs only $5,000…

A: Present value for the future costs and benefits can be calculated by discounting the costs and…

Q: Two alternatives are considered for a project that lasts for 3 years. Alternative A has an initial…

A: Project: It refers to any deal that helps a business grow. Any project needs investment due to which…

Q: warranty expired after 3 years of ownership. The cost of periodic mainten $800 every 2 years. If the…

A: First we compute Calculate the present worth of the repair and maintenance. Second we compute…

Q: Time Value of Money - Buy vs Rent Decision Rebecca Young recently graduated from Masters program and…

A: Let's assume the following:The purchase price of the condominium is $250,000.Rebecca can afford a…