Galvanized Products is considering the purchase of a new computer system for their enterprise data management system. The vendor has quoted a purchase price of $100,000. Galvanized Products is planning to borrow 1/4thof the purchase price from a bank at 15% compounded annually. The loan is to be repaid using equal annual payments over a 3-year period The computer system is expected to last 5 years and has a salvage value of S5,000 at that time. Over the 5-year period, Galvanized Products expects to pay a technician $25.000 per year to maintain the system but will save $55.000 per year through increased efficiencies. Galvanized Products uses a MARR of 18Kyear to evaluate investments Click here to access the TVMFactor Table Calculator Part a What is the annual worth of this investment?5
Galvanized Products is considering the purchase of a new computer system for their enterprise data management system. The vendor has quoted a purchase price of $100,000. Galvanized Products is planning to borrow 1/4thof the purchase price from a bank at 15% compounded annually. The loan is to be repaid using equal annual payments over a 3-year period The computer system is expected to last 5 years and has a salvage value of S5,000 at that time. Over the 5-year period, Galvanized Products expects to pay a technician $25.000 per year to maintain the system but will save $55.000 per year through increased efficiencies. Galvanized Products uses a MARR of 18Kyear to evaluate investments Click here to access the TVMFactor Table Calculator Part a What is the annual worth of this investment?5
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 4CE: Manzer Enterprises is considering two independent investments: A new automated materials handling...
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![Galvanized Products is considering the purchase of a new computer system for their enterprise data management system. The vendor
has quoted a purchase price of $100,000. Galvanized Products is planning to borrow 1/4thof the purchase price from a bank at 15%
compounded annually. The loan is to be repaid using equal annual payments over a 3-year period. The computer system is expected to
last 5 years and has a salvage value of $5.000 at that time. Over the 5-year period, Galvanized Products expects to pay a technician
$25.000 per year to maintain the system but will save $55,000 per year throughincreased efficiencies. Galvanized Producti uses a
MARR of 18%year to evaluate investments.
Click here to access the TVM Factor Table Calculator
Part a
What is the annual worth of this investment?5
Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is 5
eTextbook and Media
Attempts: O of 3 used
Sbh Anr](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4fa806b4-5f75-4762-ab30-0f110699ed49%2F67d34011-8bb4-483d-9466-6175228cd913%2Fixxfn5h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Galvanized Products is considering the purchase of a new computer system for their enterprise data management system. The vendor
has quoted a purchase price of $100,000. Galvanized Products is planning to borrow 1/4thof the purchase price from a bank at 15%
compounded annually. The loan is to be repaid using equal annual payments over a 3-year period. The computer system is expected to
last 5 years and has a salvage value of $5.000 at that time. Over the 5-year period, Galvanized Products expects to pay a technician
$25.000 per year to maintain the system but will save $55,000 per year throughincreased efficiencies. Galvanized Producti uses a
MARR of 18%year to evaluate investments.
Click here to access the TVM Factor Table Calculator
Part a
What is the annual worth of this investment?5
Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is 5
eTextbook and Media
Attempts: O of 3 used
Sbh Anr
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