A new gizmo costs $9050. Maintenance costs $6907 per year and labour savings are $1900 per year. What is the gizmo's payback period?
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A new gizmo costs $9050. Maintenance costs $6907 per year and labour savings are $1900 per year. What is the gizmo's payback period?
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- Your factory has been offered a contract to produce a part for a new printer. The contract would last for three years, and your cash flows from the contract would be $5.06 million per year. Your upfront setup costs to be ready to produce the part would be $7.97 million. Your discount rate for this contract is 8.1%. a. What is the IRR? b. The NPV is $5.05 million, which is positive so the NPV rule says to accept the project. Does the IRR rule agree with the NPV rule?Excluding maintenance, all other costs from operating the equipment will be $270 per year. Maintenance costs will be $100 in the first year of operation. As the equipment gets older, some parts will need to be replaced and the replacement will cost an additional $30 each year from year 2 to year 5 what is maintenance costs each year (from year 1 to year 5). ...Two alternative pumps are being compared. Pump A costs $5200, will save $1275 per year in operating and maintenance expenses, and is expected to last for 6 years. Pump B costs $6000, will save $1550 per year, and is also expected to last for 6 years. If the cost of capital is 12%, which has the better discounted payback period?
- Your factory has been offered a contract to produce a part for a new printer. The contract would last for three years, and your cash flows from the contract would be $5.02 million per year. Your upfront setup costs to be ready to produce the part would be $7.99 million. Your discount rate for this contract is 7.6%. a. What is the IRR? b. The NPV is $5.04 million, which is positive so the NPV rule says to accept the project. Does the IRR rule agree with the NPV rule? a. What is the IRR? The IRR is %. (Round to two decimal places.)= Your factory has been offered a contract to produce a part for a new printer. The contract would last for 3 years and your cash flows from the contract would be $4.93 million per year Your upfront setup costs to be ready to produce the part would be $7.97 million Your discount rate for this contract is 7.7% a. What is the IRR? b. The NPV is $4.80 million, which is positive, so the NPV rule says to accept the project. Does the IRR rule agree with the NPV rule? a. What is the IRR? The IRR is (Round to two decimal places)Your factory has been offered a contract to produce a part for a new printer. The contract would last for three years, and your cash flows from the contract would be $5.09 million per year. Your upfront setup costs to be ready to produce the part would be $7.92 million. Your discount rate for this contract is 8.3%. a. What is the IRR? b. The NPV is $5.13 million, which is positive so the NPV rule says to accept the project. Does the IRR rule agree with the NPV rule? a. What is the IRR? The IRR is %. (Round to two decimal places.) b. The NPV is $5.13 million, which is positive so the NPV rule says to accept the project. Does the IRR rule agree with the NPV rule? (Select from the drop-down menu.) The IRR rule with the NPV rule.
- You have just been offered a contract worth $1.21 million per year for 7 years. However, to take the contract, you will need to purchase some new equipment. Your discount rate for this project is 11.7%. You are still negotiating the purchase price of the equipment. What is the most you can pay for the equipment and still have a positive NPV? The most you can pay for the equipment and achieve the 11.7% annual return is $ 6.99 million. (Round to two decimal places.)A company is going to change all light bulbs of its buliding. The initial cost is 57000. all bulbs has been replaced at the same time. what if the bulbs have been replaced during 5 yrs period. Inflation rate is 3 percent. energy saving per yr is 6000 dollars. (compare replacement at the same time to the period of 5 yrsMachine A costs $500,000 to purchase, result in electricity bills of $100,000 per year, and last for 12 years. Machine B costs $600,000 to purchase, result in electricity bills of $85,000 per year, and last for 15 years. The discount rate is 9%. What are the equivalent annual costs for two models? Which model is more cost-effective?
- Your factory has been offered a contract to produce a part for a new printer. The contract would last for three years, and your cash flows from the contract would be $5.05 million per year. Your upfront setup costs to be ready to produce the part would be $7.92 million. Your discount rate for this contract is 7.5%. a. What is the IRR? b. The NPV is $5.21 million, which is positive so the NPV rule says to accept the project. Does the IRR rule agree with the NPV rule? a. What is the IRR? The IRR is %. (Round to two decimal places.)Jones Company is considering investing in a new piece of equipment that costs $600,000. The new equipment should provide cost savings of $150,000 per year over its 5-year useful life. What is the payback period (in years) for the new equipment?Your factory has been offered a contract to produce a part for a new printer. The contract would last for three years, and your cash flows from the contract would be $4.97 million per year. Your upfront setup costs to be ready to produce the part would be $8.02 million. Your discount rate for this contract is 7.8% a. What is the IRR? b. The NPV is $4.83 million, which is positive so the NPV rule says to accept the project. Does the IRR rule agree with the NPV rule?
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