Determine the capitalized cost of a project that cost P324,000 with an anticipated salvage value of P50.000 at the end of four years, if money is worth 8%. Annual maintenance cost is P20,000.
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- Please do not give solution in image formate thanku. Biomet Implants is planning new online patient diagnostics for surgeons while they operate. The new system will cost $300,000 to install in an operating room, $5000 annually for maintenance, and have an expected life of 10 years. The revenue per system is estimated to be $80,000 in year 1 and to increase by $10,000 per year through year 10. a) Determine NPV to see if the project is economically justified using PW analysis and an MARR of 10% per year. b) Insert a Triangle distribution with minimum at $8000, average 10,000 and maximum at 12000 as the input distribution for the revenue increase. Perform Monte Carlo Simulation and discuss the results.The cost of a biomedical image scanning machine is 95000 with an estimated annual maintenance cost of $4500 and an overhauling cost of 3000 in year 6. The machine is projected to save $25000 in direct labor cost annually. Biomedical Analytics Inc. the company who purchased the machine plans to sell it 10 years from now at a price of $35000. a) Draw the cash flow diagram b) Determine the Rate of Return (ROR) if staring with two initial guesses of 18% and 20% Hints: Profit= R-TC Profit = rQ-(FC+ v Q = Annual QuantityAn aerospace industry decides to purchase a new advanced machine.the cost of the machine are estimated to have a 4year useful life .if the MAAR Is 2096 per year . Determine which machine should be purchased on the basis of a role of return analysis. $annual operation cost 16,000,19,000 $first cost machine 31,000, 29,000
- Advanced Modular Technology (AMT) makes energy cleaner, safer, more secure and more efficient. It typically exhibits net annual revenues that increase over a fairly long period. In the long run, an AMT project may be profitable as measured by IRR, but its simple payback period may be unacceptable. Evaluate this AMT project using the IRR method when the company MARR is 13% per year and its maximum allowable payback period is two years. What is your recommendation? $98,000 $2,000 + Capital investment at time 0 Net revenues in year k $10,000 • (k- 1) $9,000 Market (salvage) value Life 4 yearsThe required investment cost of a new, large shopping center is $50 million. The salvage value of the project is estimated to be $22 million (the value of the land). Theproject's life is 17 years and the annual operating expenses are estimated to be $18 million. The MARR for such projects is 15% per year. What must the minimum annual revenue be to make the shopping center a worth whileventure?A building cost P8.5 million and the salvage value is P50,000 after 23 years. The annual maintenance cost is P85,000, costs of repair is P350,000 every 3 years. Find the capitalized cost if money worth 14% per annum. What is the renewal cost? What is the capitalized cost? (2 decimal places, rounded off), if whole number no need to add .00
- A new airconditioning unit costs P150,000 and will have a salvage value of P15,000 after 5years. Electrical cost per kWh is P1.25. Calculate the annual savings in terms of electrical savings if MARR is 15% per year.an engineer knows that the supplier of their set-5100 laser surface metrology system used on one of their lines superseded their 5100 model with the 5105. the new model has a net cost of $420000. adding the new 5105 model to the production line would in decrease scrap rate estimated to save 630000 in the first year. the rate of return for on the set-5105 purchase is 13% MEMD IS 15% what is the opportunity costThe first cost of a certain piece of equipment is Php50,000. It will have an annual operating cost of Php20,000 and Php5,000 salvage value after its 5 year life. At an interest rate of 10% per year, the capitalized cost of the equipment is,,, ANSWER WITH COMPLETE ANSWER
- Nadine Chelesvig has patented her invention. She is offering a potential manufacturer two contracts for the exclusive right to manufacture and market her product. Plan A calls for an immediate single lump sum payment to her of $30,000. Plan B calls for an annual payment of $1,000 plus a royalty of $0.50 per unit sold. The remaining life of the patent is10 years. Nadine uses a MARR of 10%/year. Solve, a. What must be the uniform annual sales volume of the product for Nadine to be indifferent between the contracts, based on a present worth analysis? b. If the sales volume is below the volume determined in (a), which contract would the manufacturer prefer?Two types of robots (Cartesian and Articulated) with the following estimates are under consideration for a dishwasher assembly process. Using an interest rate of 10% per year, determine which one should be selected on the basis of an annual worth analysis. Robot Cartesian Articulated First cost, $ −300,000 −430,000 AOC, $/year −60,000 −40,000 Salvage value, $ 70,000 95,000 Life, years 4 6Upload the picture of your complete solutions including the correct cash flow diagram (for plus points) and your conclusion. You are faced with a decision on an investment proposal. Specifically, the estimated additional income from the investment is $125,000 per year; the investment cost is $400,000; and the first year estimated expense of $20,000 and will increase a rate of 5% per year. Assume an 8-year analysis period, no salvage value, and MARR = 15% per year. a. Calculate the PW and FW of this proposal? b. What is the ERR ( Ԑ=MARR) of this proposal? c. What is the Simple and Discounted payback?