A shirt factory has just installed a boiler. It is expected that there will be no maintenance expenses until the end of the 11 th year, when P400,000.00 will be sp

Q: A company is considering purchasing a new piece of machinery at a cost $50,000. It is expected to…

A: Economic Value Added Economic value added is referred to as the economic profit which is calculated…

Q: Hayden Inc. has a number of copiers that were bought four years ago for $30,000. Currently…

A: We have to consider the after tax salvage value of the old machine at the intervals given to…

Q: At the beginning of the year 2022, DeAngelo Caterering bought a $60,000 food truck. It will require…

A: Cost of asset not just include the purchase cost, but it also includes the expenditure incurred to…

Q: A new machine was purchased for $17,000, and it is expected to sell this machine for $14,000 five…

A: Machine or fixed assets means the asset which is used by company for many years to come for the…

Q: A manufacturer plans to open a new plant. The new plant will cost $5,000,000 to build and make ready…

A: Capital budgeting is a process of evaluating a project based on various tools available. Some of the…

Q: A factory wants to invest in a washing machine which will reduce their monthly expenses. The asset…

A: Present value of annuity formula is used to calculate the amount of monthly savings required for the…

Q: It costs P50,000 at the end of each year to maintain a section of Kennon road in Baguio City. If mor…

A: Value of money changes with time and amount invested and money can be earned elsewhere by investing…

Q: A shirt factory has just installed a boiler.  It is expected that there will be no maintenance…

A: Here, To Find: Present value of money at time zero =?

Q: 1) Lincoln Industries intends to move to a bigger premise in 7 years’ time. With the increased space…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

Q: One of X Company's production machines was badly damaged recently. Unfortunately, the machine was…

A: We will calculate the present value of future costs.

Q: The maintenance of a machine in a manufacturing plant currently costs a company $9,000 every year…

A: Cash Flow Comparison with existing and new machine: Year Existing Cash Flows Proposed Cash Flows…

Q: The plant manager of Shenzhen Electronics Company is considering the purchase of new automated…

A: The question is related to Capital Budgeting. The pay back period is the length of time required to…

Q: A bag manufacturer will rent a space in a mall for 24 months for an exhibit. The monthly rent is…

A: Using excel PV and PMT function to calculate the single lumpsum payment

Q: H&H Machine Systems Inc. needs to acquire a new lift truck for transporting final products to…

A: a. The calculation is: The formulae image is:

Q: ear ago the Jenkins Family Fun Center deposited $5000 in an investment account for the purpose of…

A: Future value of amount includes the amount being deposited and interest amount account accumulated…

Q: The Prescott Welding Company needs to acquire a new lift truck for transporting its final product to…

A: The cost of leasing refers to the expenses incurred when renting or leasing an asset for a specified…

Q: I have purchased a machine worth P1.862.585.00. And it needs maintenance at the end of every 6…

A: Purchase Price = 1,862,585 Maintenance Cost = 2% of Purchase Price = 2% * 1.862,585 = 37,251.70…

Q: A new gizmo costs $9050. Maintenance costs $6907 per year and labour savings are $1900 per year.…

A: The payback period is a financial metric that is commonly used to determine how long it will take…

Q: Sams pays a delivery firm to distribute products. Delivery revenues are 30000 per year. he can buy a…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: determine the total equivalent cost in present worth at an interest rate of 10%.

A: Total Equivalent Cost = Initial Payment + Present Value of Future Payments Present Value of Future…

Q: A new gizmo costs $10 000. Maintenance costs $2000 per year and labour savings are $6567 per year.…

A: The payback period refers to the period that is required to recover the initial cost. With the help…

Q: Maintenance costs at the Woodland Waterpark are predicted to be $1,400 in the first year and…

A: Maintenance costs at the Woodland Waterpark are predicted to be $1,400 in the first year and…

Q: A new punching machine will cost $4,246. At the end of its 10 years useful life, the machine can be…

A: Answer:-  Present value meaning:- The current value of a future sum of money or cash flows at a…

Q: It will cost $4,500 to acquire a small ice cream cart. Cart sales are expected to be $3,700 a year…

A: Payback period is the period required to recover initial investment of the project.The payback…

Q: A small commercial building contractor purchased a used crane 2 years ago for $60,000. Its operating…

A: Commerical building expenses = 60000 Operation cost = 2500 for one month and then increases by 50…

Q: Need answers ASAP... A $2500 computer system can be leased for $79 per month for 3 years. After 3…

A: Monthly Interest rate = r Present Value (PV) = $2,500 Monthly lease payment = $79 Time Period = 3…

Q: Edmund spent the following amounts for the maintenance of the machine she bought: PhP 4,000 each…

A: Let the cost in year n = Cn C1 = Php 4000 C2 = Php 4000 C3 = Php 4000 C4 = Php 4000 + Php 15000 =…

Q: Wrangler Western has some of its jeans stone-washed under a contract with an independent contractor,…

A: The present worth of the machine is operating cost is the present value of all future cash outflow

Q: transport company sets aside funds to maintain its trucks. It anticipates spending $3,000 on repairs…

A: In this we have to calculate present value of expenses and than find out equivalent annual expenses.

Q: A new machine costs $10 000. Maintenance costs $2000 per year and labour savings are $6567 per year.…

A: The payback period alludes to what extent it takes for a speculator to hit breakeven to recoup the…

Q: A new punching machine will cost $4,593. At the end of its 10 years useful life, the machine can be…

A: NPV is also known as Net present value. It is a capital budgeting techniques which help in decision…

Q: EAC

A: EAC stands for the equal annum cost or the equivalent annual cost. It is the cost of the asset as…

Q: At an interest rate of 0.06 per year, the present worth of the maintenance cost is nearest to

A: Given PV=5000 Increasing =500 n=15 r=0.06 or 6%

Q: Lions Co. has machinery that cost $150,000. It is to be leased for 15 years with rent received at…

A: Lease is defined as the agreement formed between two parties namely lessor and lessee, under which…

Q: Hayden Inc. has a number of copiers that were bought four years ago for $25,000. Currently…

A: After tax salvage value After tax salvage value is calculated as shown below.         After tax…

Q: Butler Corporation is considering the purchase of new equipment costing $69,000. The projected…

A: The NPV is the tool used for the assessment of an investment's net benefits. This tool will help in…

Q: A food company intends to purchase a piece of equipment worth R$ 50,000. How much should she invest…

A: Present value is the present worth of any sum of money to be received in the future at a specified…

Q: One Company has offered a small company two method by which to pay for some needed roof repairs.…

A: Method 1 Payment = 16500   Method 2 Payment = 26400 Time Period of payment = 2 years Interest Rate =…

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.