An engineering firm estimates that its cost for employer sponsored health insurance will be $750,000 next year and increase at 11% per year for the next 5 years. The company CFO wants to budget a uniform amount each year to cover these costs. If the firm's rate of return is 6% per year, how much should be invested each year for employer sponsored health care? Express your answer in $ to the nearest $1,000.
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- An engineering firm estimates that its cost for employer sponsored health insurance will be $750,000 next year and increase at 9% per year for the next 5 years. The company CFO wants to budget a uniform amount each year to cover these costs. If the firm's rate of return is 6% per year, how much should be invested each year for employer sponsored health care? Express your answer in $ to the nearest $1,000.Suppose you have an internship at a chemical factory. Your supervisor asks you to calculate the net present value of an expansion project. Suppose the expansion costs $5 million now and $1 million next year. The plant will produce revenues of $4 million in the second year and $4 million in the third year. Calculate the net present value (or the present value of the benefits less than the present value of the costs) at a 4% discount rate. Enter your answer in millions of dollars with two decimal places.Hello can you please walk me through how to do this the annual income is 113,300 It is wise to set aside 7.5% of gross monthly income for 401 k investment. Assume the investment earns a 5% annual return and use Excel to determine the balance after 40 years for the unskilled worker and for your expected income. Then use Excel to determine how many years it would take for the unskilled worker and for your expected investment to reach $500,000.
- Your company is deciding whether to purchase a high-quality printer for your office or one of lesser quality. The high-quality printer costs $45 000 and should last five years. The lesser quality printer costs $25 000 and should last two years. If the cost of capital for the company is 12 per cent, then what is the equivalent annual cost for the best choice for the company?The maintenance and operations costs for a piece of equipment are estimated to be $300 the first month and increase by $30 per month over the equipment's 3 year life. For budgeting purposes, the owner wants to set aside a uniform amount each month to cover the maintenance and operations costs of the equipment. If the owner can invest at 4% per year, compounded monthly, what amount should he invest each month? Express your answer in $ to the nearest $10.A company invests ina fitness facility for its employees that costs $2,000,000. Due to the improved health of its employees, the company saves $500,000 per year on its healthcare premiums after the fitness facility is completed. What is the discounted payback period of the fitness facility, assuming a MARR of 4%? Click here to access the TVM Factor Table calculator. years
- Crow Corporation, a company that specializes in precision metal fabrication, is conducting a study to determine if it should update equipment now or later. If the cost 2 years from now is estimated to be $260,000, how much can the company afford to spend now if its minimum attractive rate of return is 12% per year compounded monthly?Your boss has just presented you with the summary in the accompanying table of projected costs and annual receipts for a new product line. He asks you to calculate the IRR for this investment opportunity. What would you present to your boss, and how would you explain the results of your analysis? (It is widely known that the boss likes to see graphs of PW versus interest rate for this type of problem.) The company’s MARR is 10% per year.camber crporation has to decide if they can finance purchasing 10 new machines for all their manufacturering site.the machine cost 1.73 million each ,and the supplier agreed to the following payment terms ,40%upfront and the remainder to be paid over 4 years at an annual rate of 12% Executives review their budgets and discover that they can pay supplier 40% now but their budgets only allow them to pay 4 million per year for the next four years ,will that be enough to make the purchase and critically discuss the effect of the increasing amount paid upfront when corporation make capital purchase focusing on the benefits and drawbacks , should show each step in calculations
- A janitorial services firm is considering two brands of industrial vacuum cleaners to equip their staff. Option A will cost $1,500, require servicing of $200 per year, and it will last five years. Option B will cost $1,000, require servicing of $100 per year, and it will last three years. If the cost of capital is 8%, which is the better option, given that the firm has an ongoing requirement for vacuum cleaners? O Option A, since it has a greater equivalent annual cost. O Option B, since it has a greater equivalent annual cost. O Option B, since it has a lower equivalent annual cost. O Option A, since it has a lower equivalent annual cost.You are getting into a business and want to take a loan. The bank requires that you show them your projected profits. Develop calculate a forecast for the next five years starting 2022 the following data: First order is for 100,000 units at a selling price of 6kshs per unit. Both numbers are projected to increase by 20% yearly Renting the production facility at 500,000kshs a year for five years Variable manufacturing cost of 1.50kshs per unit with a projected increase of 10% yearly Administration cost of 25,000kshs per year with a likely increase of 5%annually Tax rate is at 36% Develop a five year financial forecast from 2016 showing profits before and after taxA supermarket is planning on piloting a self-checkout system in one of its stores. It estimates that this requires an investment of about $50,000 to modify existing checkout lanes into self-checkout lanes. It also estimates that it will save $200,000 yearly in employee salaries by automating the checkout process. If the supermarket's MARR is at 10% per year compounded annually, determine the Conventional- payback period (in years) for this pilot.