An organization completes the purchase of new asset at a cost of $25,000. It has an yearly operating cost of $3,000 for delivery and installation has a depreciable life of six (6) years at the end of which the salvage value will be $3,000 Utilizing 200% Declining Balance (DB) only, complete the table below If a return on investment (rate of return) of 10% is requred, what is the minimum annual saving in needed? If the service life is decreased from six (6) years to five (5) years, what is the minimum annual savings for the firm to acheive a 10% return on investment? If the annual operating cost increase by 109%, what will be the minimum annual savings needed? Round all answers up the the nearent dollar (ie

An organization completes the purchase of new asset at a cost of $25,000. It has an yearly operating cost of $3,000 for delivery and installation has a depreciable life of six (6) years at the end of which the salvage value will be $3,000 Utilizing 200% Declining Balance (DB) only, complete the table below If a return on investment (rate of return) of 10% is requred, what is the minimum annual saving in needed? If the service life is decreased from six (6) years to five (5) years, what is the minimum annual savings for the firm to acheive a 10% return on investment? If the annual operating cost increase by 109%, what will be the minimum annual savings needed? Round all answers up the the nearent dollar (ie

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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is my part (c) correct?
5 A chemical plant is considering installing a new water purification system that costs $X. The expected life is A years and the salvage value is computed using the declining-balance method with a depreciation rate of B%. The operating costs are estimated at $Y per hour of operation. The expected savings are $Z per operating hour. MARR = X= Y= Z= A= B= C= 10% $15,300 $5 per hour $15 per hour 5 years 10% 1500 hours What is the salvage value at the end of A years? Try Again What is the annual worth of the new system if the current operating hours are C per year on average? Try Again What is the break-even level of operating hours? Try Again
(a) Total reserves of a non-renewable resource are 250 million tonnes. Annual consumption is currently 20 million tonnes per year and is expected to rise by 2% every year. After how many years will the stock be exhausted? (b) Suppose the government wanted the resource to last for 21 years and to do so decides to reduce the annual increase in extraction from its current rate of 2%. What new rate of annual increase would allow the government to achieve its targetr?
Your company is considering purchasing a new machine. An investment of $200,000 will produce an initial annual benefit of $45,000, but the benefits are expected to decline by $2,500 per year, making second-year benefits $42,500, third-year benefits $40,000, and so forth. Your firm uses straight-line depreciation, an 8-year useful life and no salvage value at the end of the 8 years. The tax rate is 42%. Question 3 Part C: Complete the following table to show the schedule of cash flows for the life of the machine. Enter your answers in the form 1234 (enter O for blank table cells). NO DECIMALS Year Before Tax Cash Flow (enter either the number with no decimals, or 0 if blank) SL Depreciation (enter either the number with no decimals, or 0 if blank) Taxable Income (enter either the number with no decimals, or 0 if blank) Income Taxes (enter either the After Tax Cash Flow (enter number with no decimals, or O either the number with no if blank) decimals, or 0 if blank) 0 1 2 3 + 5 6 8
A European candy manufacturing plant manager must select a new irradiation system to ensure the safety of specific ingredients, while being economical. The two alternatives available have the following estimates: System A B First Cost, $ –110,000 –85,000 CFBT, $ per Year 60,000 20,000 Life, Years 3 5 The company is in the 35% tax bracket and assumes classical straight line depreciation for alternative comparisons performed at an after-tax minimum acceptable rate of return (MARR) of 6% per year. A salvage value of zero is used when depreciation is calculated; however, system B can be sold after 5 years for an estimated 18% of its first cost. System A has no anticipated salvage value. Determine which is more economical using an annual worth (AW) analysis worked by hand. The annual worth analysis for system A is determined to be $ . The annual worth analysis for system B is determined to be $ .
I just need to understand why it is 195 instead of 856.
Final answer is 2689822..please show calculation
7 ! Required information Consider the cash flows shown. Year Revenues, $ Costs, $ 0 1 2 19,000 0 25,000 -6,000 -30,000 -7,000 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. The spreadsheet function is MIRR(B1:B5,10%,18%) 3 4,000 -5,500 Determine the external rate of return using the MIRR method if ir = 18% per year and ib= 10% per year. Verify your answer with the spreadsheet function. The external rate of return is 4 28,000 -13,000 % per year.
What is the primary advantage of using prestressed concrete in bridge construction? A) It is cheaper than regular concrete B) It can withstand higher tensile stresses C) It is easier to construct D) It has a higher aesthetic value
Can someone double check my work-out? Is my workout and solution correct?
A vehicle include annual labor cost of $60,000 and annual revenue of $150,000. Using a service life of 10 years, determine the BTCF and ATCF at 21% federal and 6.5% state tax rate. Would you invest in your vehicle? (Establish and use your own MARR for PW, AW and ROR analysis)
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working