An industrial juicer costs $45 000. It will be used for five years and then a remarketer for $25 000. If interest is 15 percent, what net yearly savings eded to justify its purchase?

Q: Project A costs $4,800 and will generate annual after-tax net cash inflows of $1,700 for five years.…

A: Net Present value = Present Value of Cash Flow - Initial Investment

Q: Savings of $5600 per year can be achieved through either a $14 000 machine (A) with a seven-year…

A: The concept of money's time value indicates that any sum today is worth more than what it will be in…

Q: An industrial juicer costs $55,000 it will be used for five years and then sold to a remarketer for…

A: Answer: Calculation of the net yearly savings needed to justify the purchase: In order to calculate…

Q: A new furniture set costs $ 2800. If you make a down payment of $ 300 and finance the rest at a rate…

A: Furniture cost = $2800 Down payment = $300 Loan amount (P) = $2800 - $300 = $2500 Monthly interest…

Q: A new high-efficiency motor is being considered for a large compressor. The new motor will cost…

A: Payback Period is the time duration taken to reap back the amount invested in the project. The…

Q: A computer purchased for $1200 will have a salvage value of $600 after 6 years. Annual maintenance…

A: EUAC or Equivalent uniform annual cost is the annual cost associated with operating and maintaining…

Q: You want to buy a boat costing $35,000.  Your down payment is $7,000.  The remainder will be paid…

A: We have to calculate present value factor by considering monthly interest and from that we can…

Q: We purchase a machine with a price of $400,000. We pay 20% up front, and will finance the rest over…

A: A note payable is the note payable which has to be paid by the borrower as this is the amount which…

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: 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: A new transmission in your truck will cost $5,000. Luckily, it should reduce maintenance expense by…

A: Profitability Index is a financial tool which tells whether an investment should be accepted or…

Q: The current amount of money that can be afford to invest is

A: Given in the question:   A major overhaul can increase output by 20% Additional Cash Flow…

Q: A new transmission in your truck will cost $9500. Luckily it should reduce maintenance expense by $…

A: Given Data: Year Cash Flows131502315033150431505315063150731508315093150103150Initial…

Q: Suppose you buy a car for $18,400 and finance it at 8%. Determine the monthly payment and total cost…

A: Hi, since you have posted multiple questions, we will answer the first one, as per authoring…

Q: Suppose you want to purchase equipment costing $500 and which will give you a cash flow of $35 every…

A: Net present value is the capital budgeting technique used to evaluate the profitability of various…

Q: You have purchased a canning machine for $7,000. You expect the machine to save your company $3,775…

A: The profitability index (PI) is a financial metric used to evaluate the attractiveness of an…

Q: NPV

A: Formula to calculate the NPV is: NPV = Cash flows/(1+i)^n - Initial investment

Q: per year. Another option is to sell the land this year at its current market price of $80,000. The…

A: The cost an organization must pay to use land as a production component for a certain amount of time…

Q: A new furniture set costs $ 2900. If you make a down payment of $ 400 and finance the rest at a rate…

A: Cost of furniture = $ 2900 Down payment = $ 400 Mortgage amount (PV) = 2900-400 = $ 2500 Interest…

Q: A new delivery van costs $20,000 and can be financed for 60 months with a $4,000 down payment.…

A: The monthly payment is the amount that will be paid each month to repay the loan. It mainly depends…

Q: The sales price is $150,000. The buyer is obtaining a 90% conventional loan for 15 years. The factor…

A: Sale price = $150000 Down payment = 90%*$150000 = $135000 Factor of 9.28 means that $9.28 is given…

Q: You want to go to an archaeological dig in search of the lost ark. You must save a portion of your…

A: Future value refers to the value of all cash flows at future date that are compounded over a period…

Q: You have to buy a new copier. The cost of the copier is​ $2,075​, plus ​$410 per year in maintenance…

A:

Q: A new furniture set costs $ 2100. If you make a down payment of $ 300 and finance the rest at a rate…

A: In this question the monthly payment is to be find for the loan. Loan can be calculated by deducting…

Q: A house costs 150,000. If the down payment is 20% of the price and the rest is financed with a…

A: First we need to determine the loan amount. This can be determined with the formula below:

Q: Elijah Enterprises will need to upgrade the computer system in 10 years. They anticipate the upgrade…

A: Yearly investments or payments refer to the periodic deposits that are made to fund future…

Q: You need $6,000 to buy new furniture. If you have $1,000 invest today at 8% compounded annually, how…

A: In this question we need to compute the number of years i.e. time period.This question is based on…

Q: A Chevrolet Sonic Hatchback costs $14,640.00. With a 9%​ down payment, you can have an amortized…

A: Initial cost of car = $14,640Down payment = initial cost of car * 9% = 14,640 * 0.09 = $…

Q: You estimate your monthly gas and maintenance expenses for your delivery vehicles will be $1,500 a…

A: Monthly expenses (P) = $ 1500 Period = 7 Years Period in months (N) = 7*12 = 84 Annual interest rate…

Q: Suppose you need $1,000 in one year and $2,000 more in two years. If you can earn 9%, how much do…

A: The objective of the question is to find out the present value of the future cash flows. In this…