A company that manufactures brushless blowers invested $650,000 in an automated quality control system for blower housings. The resultant savingswas $160,000 per year for 5 years. If the equipment had a salvage value of $50,000, what rate of return per year did the company make?

Q: ne year ago, your company purchased a machine used in manufacturing for $115.000. You have learned…

A: NPV is the most important method of project selection and can be found as the difference between…

Q: One year ago, your company purchased a machine used in manufacturing for $115,000. You have learned…

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

Q: The NPV of the replacement is $        ?

A: Net present value is the difference of discounted cash inflows and outflows.

Q: One year ago, your company purchased a machine used in manufacturing for $100,000. You have learned…

A: The total present value of cash inflows and outflows is known as net present value, or NPV. To put…

Q: A company engaging in selling of laboratory equipment estimates that profit from sales should…

A: The objective of the question is to determine whether a mobile demonstration unit should be built…

Q: One year ago, your company purchased a machine used in manufacturing for $90,000. You have learned…

A: Answer:To determine whether it is profitable to replace the year-old machine, we need to calculate…

Q: One year ago, your company purchased a machine used in manufacturing for $90,000. You have learned…

A: Net present value NPV is the difference between the present value of cash flow and the initial…

Q: --y e uc

A: the expected interest rate for coming years can be found Given the interest on 3 years government…

Q: A design company is evaluating the purchase of automatic tools to automate the design process. The…

A: Computation of discounting factor at the rate of 10% is as follows:

Q: Required: 1. What is the net present value of the piece of equipment before considering its…

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

Q: One year ago, your company purchased a machine used in manufacturing for $100,000. You have learned…

A: The total present value of cash inflows and outflows is known as net present value, or NPV. To put…

Q: Lukow Products is investigating the purchase of automated equipment that will save $100,000 each…

A: The objective of the question is to calculate the net present value (NPV) of the equipment before…

Q: You purchased an industrial oven five years ago for $70,000. O&M costs are $20,000 this year but…

A:

Q: Alter company's manager has proposed installing equipment that will cost $36,000 have an 8 years…

A: Average annual profit = Total profit / total no. of years = $16000/4 years = $4000 Average…

Q: What is the NPV of replacement? The NPV of replacement is $ (Round to the nearest dollar.)

A: The net present value method can be used to determine if an investment is profitable or not. It…

Q: One year ago, your company purchased a machine used in manufacturing for $105,000. You have learned…

A: Additional Considerations:This analysis takes just financial issues into account. When choosing a…

Q: You invested on a special pizza oven for $60,000 which has a useful operating life of 50,000 hours.…

A: Depreciation under hourly method is an approach where the asset is depreciated using its hours of…

Q: earnings before One year ago, your company purchased a machine used in manufacturing for $115,000.…

A: When evaluating the profitability of an investment, if the NPV is positive, it is advisable to…

Q: achine is expected to p er year. The current ma d on a straiaht-line ba

A: NPV replacement analysis can be done as follows in excel :

Q: 1.In a window and door manufacturing company, to justify the viability of a production line…

A: The correct option is  b. $60,000 Please see the next step for the solution

Q: A machine has a first cost of $10,000 and an expected salvage value of $900 when it is sold.…

A: Payback period is the period which depicts the recovery period within which the cash outflows of the…

Q: A Company has an opportunity to produce and sell a new product. Your team has been asked to use…

A: The payback period is the time it takes for an investment to generate an amount of income or cash…

Q: Use the PW method. Show the cash flow diagram if necessary and complete solution. Do not use excel…

A: i)  Present worthIt is not worthwhile to purchase the new machine because its present worth is less…

Q: One year ago, your company purchased a machine used in manufacturing for $110,000. You have learned…

A: NPV stands for Net Present Value, which is a fundamental concept in finance and investment analysis.…

Q: A company engaging in selling of laboratory equipment estimates that profit from sales should…

A: The objective of the question is to determine whether a mobile demonstration unit should be built…

Q: Astor Industries plans to automate its production process. The new equipment will cost $460,000 and…

A: NET PRESENT VALUE Net Present Value is one of the Important Capital Budgeting Technique. Net…

Q: Alliance Manufacturing Company is considering the purchase of a new automated drill press to replace…

A: Cost of Machine = $25,000 Cost Saving = $6,000 Salvage Value = $1,000 Cost of capital = 14% Tax Rate…

Q: Henrie's Drapery Service is investigating the purchase of a new machine for cleaning and blocking…

A: IRR is the rate of return on the investment.It is the rate of return where NPV = 0If the cost of…

Q: wo years ago, your company purchased a machine used in manufacturing for RM140,000. Although the…

A: Cost of Machine = RM140,000 Cost of new machine = RM150,000  Cost of shipping on new machine =…

Q: One year ago, your company purchased a machine used in manufacturing for $10 nachine is available…

A: NPV can be found as difference between present value of cash flow and initial investment and it…

Q: You have been asked to make a recommendation about whether to spend $115,000 on a new Laser cutting…

A: Here, we have been given the real discount rate, which is 8%. Both salvage value and overhaul costs…

Q: The NPV of replacing the year-old machine is $ (Round to the nearest dollar.) Should your company…

A: To determine the NPV of replacing the year old machine, we first need to determine the relevant…

Q: Englewood Company has an opportunity to produce and sell a revolutionary new smoke detector for…

A: The easiest way to determine depreciation over time is through straight-line depreciation. According…

Q: Barron Chemical uses a thermoplastic polymer to enhance the appearance of certain RV panels. The…

A: Rate of return = IRR = the rate at which NPV is nil.   The cash flows are: Year Costs Revenues…

Q: Laverty Clinic plans to purchase a new centrifuge machine for its New York facility. The…

A: Net Present Value (NPV): NPV is a technique used in capital budgeting to see the project is…

Q: he year ago, your company purchased a machine used in manufacturing for $95.000. You have learned…

A: Net present value NPV is the difference between the present value of cash flow and the initial…

Q: A company that manufactures automobile headlight housings invested $750,000 in an automated assembly…

A: Using excel RATE function where PV = Amount invested  NPER = no. of years FV = Salvage Value PMT =…

Q: A new absorption chiller system costs $360,000 and will save $52,500 in each of the next 12 years.…

A: Net present worth approach is a quantitative analysis tool that helps in evaluating the investment…

Q: Alliance Manufacturing Company is considering the purchase of a new automated drill press to replace…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: ear after extra operating costs

A: Given information : Year Cash flows 0 -25000 1 8000 2 8000 3 8000 4 8000 5 13000…

Q: One year ago, your company purchased a machine used in manufacturing for $90,000. You have learned…

A: NPV of replacement is the difference between the present value of benefits and the cost of…

Q: You purchased an industrial oven five years ago for $80,000. O&M costs were $20,000 for this year…

A: To find the remaining economic life for the asset, we need to calculate the present value of the…

Q: A company engaging in selling of laboratory equipment estimates that profit from sales should…

A: The objective of the question is to determine whether a mobile demonstration unit should be built…

Q: Lukow Products is investigating the purchase of automated equipment that will save $130,000 each…

A: Savings in Costs = $ 130000Cost of the Equipment = $ 920000Useful Life(Expected) = 6Salvage Value =…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.