None A company purchase a piece of manufacturing equipment for an additional income. The expected income is $3,500 per semester Its useful life is 9 years Expenses are estimated to be $500 semiannually. If the purchase price is $44,000 andthere is a salvage value of $4,500, what is the prospective rate of return (IRR) of this investment? The MARR is 10% compounded semiannuallyO a. IRR=3% semiannualO b. IRR=6% semiannualOc. IRR=12% semiannualOd. IRR=6.02% semiannual

let's analyze the answer choices:a. 3%: If the IRR is this low, the project might not be very…

Answered: A company purchase a piece of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A company purchase a piece of manufacturing equipment for an additional income. The expected income is $4.500 per semester. Its useful Me is 9 years Expenses are estimated to be $500 semiannually. If the purchase price is $44,000 and there is a salvage value of $4,500, what is the prospective rate of return (IRR) of this investment? The MARR is 10% compounded semiannually a IRR-6.02% semiannual Ob. IRR 12% semiannual OcIRR-623% semiannual Od. IRR-3% semiannual
Q) A civil engineer planning for her retirement places 11% of her salary each year into a high-technology stock fund. If her salary this year (end of year 1) is $200,000 and she expects her salary to increase by 4% each year, what will be th future worth of her retirement fund after 14 years provided it earns 8% per year? Solve it correctly. Typed or handwriting with concept use. Not solve in excel works.
None
Y6
Q-For I= 15%, Solve for the Equivalent Uniform Annual Cost (EUAC) in periods 1 to 5, Provide any additional or modified cash flow diagrams necessary for your solution and show all work. All values are csot except the $4000 salvage, which is a benefit. The cash flow diagram for the question provided in the picture below.
If we are charged $50 on a $500 loan that is due in 1 month, what is the effective annual rate? (ieff) A 100% B 120% C 180% D 200% E 213% F 223% G 243% H 263%
this are homework questions, pls explain the correct answer :
what is the answer in 2 decimal places
An electronics firm is planning to manutacture a new handheid gaming device tor the preteen market The data have been estimated tor the product Assuming a negligible market (salvage) value tor the equipment at the end of tive years, determine the breakeven annual sales volume for this product. E Click the icon to view the data estimated for the product A Click the icon to view the interest and annuity table for discrete compounding when i= 15% per year. The breakeven annual sales volume is 5000 units. (Round to the nearest whole number) More Info Sales price $12.50 per unit Equipment cost Ovorhoad cost Operating and maintenance cost Production lime per 1,000 units Study period (planning horizon) $200,000 $50.000 per yoar $25 per operating hour 100 hours 5 years 15% per year MARR
Maintenance cost for a small bridge with an expected 60-year life are estimated to be $1,000 each year for the first 5 years, followed by a $ 10,000 expenditure in the 15th year and a $ 10,000 expenditure in year thirty. At 10% interest rate, what is the equivalent uniform annual maintenance cost over the entire 60 - year period? Show solutions
For the diagram shown, the respective values of (n1, n2) for the following equation are: P=1000(F/A,4%,n1)(P/F,4%,n2). P = ? 0 1 2 4 5 6 7 8 9 10 (Year) $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 Оа. 8 and 2 O b. 10 and 2 Ос. 8 and 10 O d. 10 and 1
Major overhaul expenses of $5,000 each are anticipated for a large piece of earthmoving equipment. The expenses will occur at EOY four and will continue every three years thereafter up to and including year 13. The interest rate is 12% per year. Solve, a. Draw a cash-flow diagram. b. What is the present equivalent of the overhaul expenses at time 0? c. What is the annual equivalent expense during only years 5–13?

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