A company with a MARR = 10% expects the costs to operate and maintain a particular piece of equipment for the next 6 years to be $3,000 each year for years 1-3 and the $6,000 each yearfor years 4-6, as shown below.#6,000 $6000$3000#300013000The Equivalent Uniform Annual Cost to operate and maintain the equipment for the 6 years is closest to:O a. $4,500b. $4,290O c. $4,060O d. $3,870

Equivalent annual cost (EAC) is the annual cost of owning, operating, and maintaining an asset over…

A company with a MARR = 10% expects the costs to operate and maintain a particular piece of equipment for the next 6 years to be $3,000 each year for years 1-3 and the $6,000 each year for years 4-6, as shown below. $300 #3000 13000 The Equivalent Uniform Annual Cost to operate and maintain the equipment for the 6 years is closest to: O a. $4,500 Ob. $4,290 O C. $4,060 O d. $3,870

A company with a MARR = 10% expects the costs to operate and maintain a particular piece of equipment for the next 6 years to be $3,000 each year for years 1-3 and the $6,000 each year for years 4-6, as shown below. $300 #3000 13000 The Equivalent Uniform Annual Cost to operate and maintain the equipment for the 6 years is closest to: O a. $4,500 Ob. $4,290 O C. $4,060 O d. $3,870

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

1. Maintenance costs for a small bridge with an expected 50-yr life are estimated to be P 2,000.00 each year for the first 5 years, followed by a P10.000 expenditure in the 15th year and a P 20,000 expenditure in the 25th year. IfI 12% per year, what is the equivalent uniform annual maintenance costs over the entire 50-yr period? a. P 1,230 b. P 852 C. P 936 d. P 1,159
Sales of a product toy named Scooby estimated at 80,000 pieces annually with a rate of 6 pu. Its variable mfg costs are 2.50 pu with S&D and general expenses related to Scooby is 59,000 on annual basis. Its fixed manufacturing costs (excluding depreciation) at 45,000 on annual basis. Investment made is 350,000 with related to various moulds & equipment. The equipment have a 3 year life with ending salvage value of 20,000 where it was followed SLM depreciation.The rate of tax will be at 40%. Required: Estimated increase in annual level of net income from the planned manufacture and sale of Scooby toys.
Stuart Corporation incurs the following annual fixed costs. Item Depreciation Officers' salaries Long-term lease Property taxes Cost $ 66,000 190,000 Units Produced Fixed cost per unit Required Determine the total fixed cost per unit of production, assuming that Stuart produces 10,000, 10,500, or 11,000 units. (Round your answers to 2 decimal places.) 50,000 11,000 10,000 10,500 11,000
Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a five- year period. His annual pay raises are determined by his division's return on investment (ROI), which has exceeded 19% each of the last three years. He computed the following cost and revenue estimates for each product: Product A Product B Initial investment: Cost of equipment (zero salvage value) $ 190,000 $ 400,000 Annual revenues and costs: Sales revenues $ 270,000 $ 370,000 Variable expenses $ 128,000 $ 178,000 Depreciation expense $ 38,000 $ 80,000 Fixed out-of-pocket operating costs $ 72,000 $ 52,000 The company's discount rate is 17%. Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: 1. Calculate each product's payback period. 2. Calculate each product's net present value. 3. Calculate each product's internal rate of return. 4. Calculate each product's profitability index. 5.…
7. Equipment costing PIM is expected to produce 10. 000 pieces of pipes dur ing its economic life before being replaced. Annual production of this equipment is 2, 500 pipes. The equi pment' s scrap value is estimated at P50, 000. The cost of housing the equipment is P25, 000 per year. Costs of power and maintenance per unit are P9. 00 and P7. 00, respectively. Cost of labor is P35. 00 per unit. Use sinking fund method of depreciation with = 12% a. What is the total fixed cost? b. What is the variable cost per unit? c. What is the total cost of production per unit?
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.$51,790 B.$42,170 C.$46,660 D.$38,220
Sales of a product was estimated at 80,000 pieces annually with a rate of 6 pu. Its variable mfg. costs are 2.50 pu with S&D and general expenses related to product is 59,000 on annual basis. Its fixed manufacturing costs (excluding depreciation) at 45,000 on annual basis. Investment made is 350,000 with related to various molds & equipment. The equipment have a 3 year life with ending salvage value of 20,000.Tax at 40%. Calculate the estimated increase in annual level of net income from the planned manufacture and sale of the product.
Last year, the Boston warehouse actual annual cost (12 months) totaled $113000, with the first 5 months' costs at $30000.The actual cost of operation totaled $35000 this year at the end of month 5. Compute the projected total costs for the current year (at the end of month 12). Round your answer to the nearest dollar, if applicable. Please provide only typed answer solution no handwritten solution needed allowed... Please do it neat and clean correctly please...
Ff.123.
A general manager wants to know the economic service life of currently owned machines. The market value of the machines and the maintenance and operating costs are shown below. Use the company’s MARR of 15% per year to determine the ESL. Year Market Value Annual Cost Total Annual Worth 0 $40,000 N/A N/A 1 $30,000 $20,000 -$36,000 2 $25,000 $22,000 -$33,907 3 $12,000 $24,000 4 $2,000 $26,000 -$36,263
A factory can produce 1,20,000 units per annum at its optimum (100%) capacity. The estimated costs of production are as under: Direct Material Tk 6 per unit Direct labor Tk 4 per unit Indirect Expenses: Fixed Tk 3,00,000 Variable Tk 2.50 per unit Semi-variable Tk30, 000 per annum up to 40% capacity and an extra expense of Tk 15,000 for every 20% increase in capacity or part thereof. The factory produces only against orders (and not for own stock). If the production of the factory is as indicated below and management desires to earn profit of 20% on sales for the year, work out the average selling price at which each unit should be quoted: First 2 months of the year: 30% capacity: Remaining months of the year 75% capacity. Ignore selling, distribution and administrative overheads.

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS