A new bottle-capping machine costs 65,000, including 8,000 for installation. The machine is expected to have a useful life of eight years with no salvage value at that time (assume straight-line depreciation). Operating and maintenace costs are expecte to be 3,500 for the first year, increasing by 2,000 each year thereafter. Interest is 10%. Construct a spreadsheet that has the following headings: Year, Salvage Value, Maintenance Costs, EAC (Capital Costs), EAC (Operating Costs), and EAC (Total Costs). Compute the EAC (Total Costs) if the bottle capper is kept for n years, n = 1,...,8. What is the economic life of the bottle capper (in years)? Complete the row of the table indicating the economic life for this project NOTE: Use 5 significant figures in your calculations, and round your answers for the table below to the nearest dollar.

A new bottle-capping machine costs 65,000, including 8,000 for installation. The machine is expected to have a useful life of eight years with no salvage value at that time (assume straight-line depreciation). Operating and maintenace costs are expecte to be 3,500 for the first year, increasing by 2,000 each year thereafter. Interest is 10%. Construct a spreadsheet that has the following headings: Year, Salvage Value, Maintenance Costs, EAC (Capital Costs), EAC (Operating Costs), and EAC (Total Costs). Compute the EAC (Total Costs) if the bottle capper is kept for n years, n = 1,...,8. What is the economic life of the bottle capper (in years)? Complete the row of the table indicating the economic life for this project NOTE: Use 5 significant figures in your calculations, and round your answers for the table below to the nearest dollar.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

We project unit sales for a new household-use laser-guided cockroach search and destroy system as follows: Unit Sales 100,500 112,500 135,500 141,500 94,500 Year 1 2 3 4 5 The new system will be priced to sell at $470 each. The cockroach eradicator project will require $2,100,000 in net working capital to start, and total net working capital will rise to 15% of the change in sales. The variable cost per unit is $340, and total fixed costs are $2,400,000 per year. The equipment necessary to begin production will cost a total of $22 million. This equipment is mostly industrial machinery and thus qualifies for CCA at a rate of 20%. In five years, this equipment will actually be worth about 20% of its cost. The relevant tax rate is 35%, and the required return is 16%. Based on these preliminary estimates, what is the NPV of the project? (Enter the answer in dollars. Do not round your intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV $…
Illustrate the procedure used to convert the units into equivalent annual units?
Consider the revenues and costs in 2019 for Spruce Decor Inc, an Alberta-based furniture company entirely owned by Mr Harold Buford $645,000 a. What would accountants determine Spruce Decor's profits to be in 20197 Spruce Decor's profits in 2019 equal $471000 Furniture Sales Catalogue Sales Labour Costs Materials Costs Advertising Costs Debt-Service Costs $13,500 $350,000 $148,000 $28,000 $30,000
Give the calculations regarding the sinking fund method of depreciation with an interest rate of 12% compounded annually. Find the book value until 10th year and create a table regarding to depreciation. FC= 100,000 SV= 20, 000 n= 8years i=12%
Gabe purchases a $500 bond that has 6 remaining semi-annual 6% coupon payments for $450. What would be his return per half year period? Round entry to 1 decimal place. The tolerance is ±0.4.
Can you help me with this question A business is expected to generate income at a continuous rate of $25,000 per year for the next eight years. Money can earn 3.4% annual interest, compounded continuously. The business is for sale for $153,000. Is this a good deal? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.