(b) Following particulars are available about a new automatic machine of the surgery department in a medical college. Particulars Amount ($) Initial Cost 500000 Annual O/M cost 850 Cost at the end of 12th year for technical update 50000 Annual income from the machine 60000 Salvage value of the machine 40000 Life of the machine (years) 20 (i) Write a cash flow diagram. (ii) Find the Annual Worth amount of costs and benefits separately at the MARR of 9% set by the medical college. (iii) Write your impression about purchasing this machine.

(b) Following particulars are available about a new automatic machine of the surgery department in a medical college. Particulars Amount ($) Initial Cost 500000 Annual O/M cost 850 Cost at the end of 12th year for technical update 50000 Annual income from the machine 60000 Salvage value of the machine 40000 Life of the machine (years) 20 (i) Write a cash flow diagram. (ii) Find the Annual Worth amount of costs and benefits separately at the MARR of 9% set by the medical college. (iii) Write your impression about purchasing this machine.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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please draw a cash flow diagram if possible
Gadubhai
Find the capitalized cost for the following information: Note: Write a positive number, with at least one digit after the decimal point. First cost. $ 140,000 Cost at the end of year 4 260,000 Annual cost, S 52,000 Periodic costs, every 5 years, $ 108,000 Salvage value, $ 20.000 Interest rate, % 20 Answer:
Topic: Depreciation Solve with detailed written solution.
Gumtree Ltd will invest in an asset that is currently trading at $171,000. This is expected to generate a quarterly cash flow that grows at a constant rate of 6% p.a. compounded quarterly forever. The expected cost of capital is 10%p.a. compounded annually. How much would the first cash flow be from such an asset? Group of answer choices a. $1,107.52 b. $1,789.65 с. $1,558.44 d. $1,324.61 e. $1,961.37
please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
Subj:
For each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear manual solutions to the problem; (c) highlight the final answer (only the final answer as required by the problem) by enclosing it within a box. Company A purchased office equipment for $400,000. The functional life is 10 years and the salvage value is 10% of the purchase price. Determine the depreciation amount on the 4th year and the book value at the end of the 3rd year using: Straight Line Method Double Declining Balance Method Sum-of-Years Digits Method Declining Balance Method with Switchover to SL MACRS GDS (assume that the assets will be disposed of on the 3rd year)
you are given the following information about a proposed project : Investment costs $15,000 Annual expenses $3,500 Annual Revenue $7500 Salvage Value $2000 Economic life 5 years M.A.R.R 10 % The net present worth of the project is closest to a.$1400 b.$1300 c.$1800 d.$1600
Foster Company wants to buy a special automated machine to replace an existing manual system. The initial outlay (cost) is $3,500,000. The new machine will last 5 years with no expected salvage value. The expected annual cash flows are as follows: Year Cash Inflow Cash Outflow 0 $ - $ 3,500,000.00 1 $ 3,900,000.00 $ 3,000,000.00 2 $ 3,900,000.00 $ 3,000,000.00 3 $ 3,900,000.00 $ 3,000,000.00 4 $ 3,900,000.00 $ 3,000,000.00 5 $ 3,900,000.00 $ 3,000,000.00 Foster has a cost of capital equal to 10%. 1. Calculate the payback period. Payback period: years
Please see attached
Determine the capitalized cost of a personal computer that worth 50,000 with a salvage value of 10,000, with maintenance cost of 1,000 per year for the first 3 years, 1200 for the next 3 years and 1,500 per year thereafter. 5,000 repair every 6 years and replaced every 12 years, if money worth 10%.

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