$8000 will cost now for installing a printing machine, but it will save $2200/year for 5 years. The salvage value of printing machine is estimated as $1500. Calculate the present worth of printing machine while i=-10%

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A: NPV is calculated below.

Q: 1. Disregarding the revenue, what is the future value of the machine cost? 2. What is the present…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

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A: Depreciation is decrease in value of an asset over a period of time due to use of asset in business.…

Q: Schultz company is considering purchasing a machine that would cost $478,800 and have a useful life…

A: Payback period = Investment cost / Annual cash flows

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A: Given information: Initial cost of machine is $15,000, Cash flows for 10 years is $2,500

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A: To break even, present value of inflows shall be equal to the initial cost of the project.

Q: what is the present worth of this investment?

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

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A: Direct labor is a crucial component in the calculation of the cost of goods sold (COGS) for…

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A: Before accepting any capital investment projects, a company should carry out an NPV analysis. Net…

Q: A machine will cost $30,000 to purchase. Annual operating and maintenance costs (O&M) will be…

A:

Q: Peng Company is considering buying a machine that will yield income of $2,400 and net cash flow of…

A:

Q: pender is P311,000 and a salvage D00, find the annual cost of perpetual service.

A: Annual Cost: It represents the annuity stream of periodic costs made at the end of each period. It…

Q: Method and (b) Future worth Method if interest rate is 10% per year? Machine nitial Cost (Php)…

A: The present worth and future worth are methods to asses the feasibility of projects under…

Q: Wildhorse Manufacturing purchases equipment with an expected life of 10 years for $49500. The…

A: The payback period is the time to recover the cost of investment.

Q: compute the capitalized cost of a new car worth 800,000 if it is estimated that is requires 20,000…

A: Purchase price  = 800,000 Annual cost = 20,000 Salvage value = 300,000 Period = 5 Years Interest…

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A: Fine clothing factory should purchase the machine if average rate of return in more than desired…

Q: 2) The initial cost of a new m/c is $10,0000. The annual maintenance cost is $3,000 for first 2…

A: The question is based on the calculation of EUAC ( equivalent Uniform Annual cost) . EUAC is a…

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A: RR is also known as Net Present Value. It is a capital budegting technqiues which helps in decision…

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A: The question is multiple choice question and related with Capital Budgeting. Required  Choose the…

Q: A machine, costing $25000 to buy and $ 3000 per year to operate, will save mainly labor expenses in…

A: Net cash flow is calculated by PMT function in excel, where PV is the first cost, FV is salvage…

Q: A machine gives annual benefits of 1000$ and have no salvage value with annual maintenance of 750$,…

A: Present worth is the present value of future cashflows

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A: Here, Cost of Machine is $100,000 Life of Machine is 15 years Salvage Value is 10% of Cost of…

Q: 1. A machine costs $250,000 to purchase and will provide $60,000 a year in benefits. The company…

A: Net present worth is the difference between the present value of the cash inflows and cash outflows.…

Q: A machine can be purchased at t=0 for $20,000. The estimated life is 15 years, with an estimated…

A: While evaluating the project, cash inflow should be higher than cash outflow in present value terms.…

Q: A machine costs P150000 The book value at the end of 2 years is estimated to be P870000. If the…

A: The depreciation rate % for each year is computed using the SYD technique in which the number of…

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A: Net present value method (NPV): Net present value method is the method which is used to compare the…

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A: Both the machines i.e. 6 years life and 10 years life machine will have same equivalent uniform…

Q: machine cost is $50,000. fuel and minor repair cost is cost is # 15.00 per hour. A set of tire costs…

A: Salvage value is the expected book value of an asset after depreciation, based on what the firm…

Q: You want to buy a new machine. It's going to cost $200,000 and have a salvage value of $15,000 after…

A: Here, Cost = $200,000 Salvage value = $15,000 Time period = 7 years Annual operating costs =…

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A: The initial cost and the salvage value of a machinery is known. We have to find the equivalent…

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A: NPV is also known as Net present value. It is a capital budgeting techniques which help in decision…

Q: Mio is going to buy a new machine for manufacturing its product: Machine A has a first cost of…

A: First cost of A (X) = P 50000 Annual maintenance cost (A) = P 6000 Salvage value (S) = P 2000 r = 9%…

Q: for 6 years and has a salvage value of P 30, 000.00. How much could an investor afford to pay for

A: Equivalent annual cost is important in decision making and that have lower annual cost are best…

Q: Xavier Co. wants to purchase a machine for $37,400 with a four-year life and a $1,100 salvage value.…

A: The difference between the present value of cash inflows and present value of cash outflows is net…

Q: for Fab Fabricating. At an initial cost of $8000 and zero salvage value, using IRR, are they a good…

A: Internal Rate of Return (IRR): It is the rate that makes the net present value of the project zero.…

Q: $8000 will cost now for installing a printing machine, but it will save $2200/year for 5 years. The…

A: The concept of money's time worth indicates that any sum of money today is more as compared to its…

Q: A machine will cost $30,000 to purchase. Annual operating and maintenance costs (O&M) will be…

A: A method of capital budgeting that helps to evaluate the present value of cash flow and a series of…

Q: r Denver Company is considering the purchase of a new piece of factory equipment that will cost…

A: Present value of annuity factor: = $360,500 / $100,000 = 3.605 In present value of annuity table at…

Q: Mr Dela Cruz is going to buy a new machine for manufacturing its product: Machine A has a first cost…

A: First cost of B (X) = P 140000 Annual cost (A) = P 2500 Salvage value (S) = P 10000 r = 9% n = 36…

Q: A company must purchase a new machine to increase production. The machine will cost $50,000 to…

A: The case involves the calculation of present worth. It is done by calculating the expected value of…

Q: ronado, Inc. is considering purchasing equipment costing $39000 with a 7-year useful life. Th $8700…

A: Internal rate of return is the break even rate at which the present value of cash flow equals the…

Q: Davis  Inc. is considering purchasing equipment costing $60,000 with a 6-year useful life. The…

A: Net Present Value = Present value of cash inflows – Initial investment