In 300 words describe what the one-year principle is?

Q: A company is considering purchasing a new piece of machinery at a cost $50,000. It is expected to…

A: Economic Value Added Economic value added is referred to as the economic profit which is calculated…

Q: A manufacturer of video games develops a new game over two years. This costs $840,000 per year with…

A: The net present value (NPV) is a fundamental tool of capital budgeting. This tool enables investors…

Q: A company plans to invest $11,000 dollars are new equipment to reduce operating costs. It is…

A: Data given: Initial investment=$11000 Annual savings=$9000 N=5 year R=6%     Formula to be used:…

Q: Example: A new process for a manufacturing process will have a first cost of $55,000 with annual…

A: Payback period= First costs / Annual cash flowIt doesnt take into consideration time value of money

Q: company projects an increase in net income of $157500 each year for the next five years if it…

A: Average investment = (Initial investment+ salvage value)/2 = (900000+300000)/2 = $600000

Q: A factory company has 5 years to prepare for relocating in another place. The equipment for loading…

A: Capital rate per year can be defined as the amount to be capitalized on annual basis. It is…

Q: By how much would Terme's annual gross profit increase if the investment is undertaken?

A: Investing Decisions (like purchase of asset, sale of asset, acquisition, merger etc.) are very…

Q: what must be the market (resale) v nt? Comnany make a 16% annual

A: Definition: Annual return on investment: Return gained on investment over a period of time which is…

Q: A business is genen salvage value of $5 Determine IRR in

A: Given Cashflows per year $19000 for 10 ten years

Q: mpany purchases the machine, its cost of $276,000 will be financed with a loan at 14.8% interest for…

A: The equipment finance company pays the loan in equal installments which include the principal amount…

Q: Consider a firm with a contract to sell an asset for $154,000 five years from now. The asset costs…

A: a) The Future value of the asset = FV=  $154000Number of years = n = 5The current cost of the asset…

Q: A factory costs $840,000. You estimate that it will produce an inflow after operating costs of…

A: The investment's entire financial benefit or profitability is shown by the net present value. A…

Q: You are considering investing $64,000 in new equipment. You estimate that the net cash flows will be…

A: Investing in new Equipment  $        64,000 Life of Equipment 8 year  Salvage Value  $…

Q: You are planning to invest $12,000 in new equipment. The investment will generate cost savings of…

A: The correct answer is: (C) ($480)  Net present value = Present value of inflows - present value of…

Q: 7.5 years

A: Given information : Initial investment = OR 60,000 Periodic cash flows = OR 8000 per year

Q: A company is considering the purchase of equipment that costs $120,000 and has an estimated residual…

A: The average rate of return (ARR) can be calculated using the formula:𝐴𝑅𝑅=Average Annual…

Q: P 1

A: that a new machine will be purchased for  $ 60000, and will save income $ 10000, with required rate…

Q: A business is generating $100,000 annually over 10 years, with a salvage value of $1,000,000 in the…

A: Use the table below: Cost 10.00%     Cash flows Year Discounted CF = Cash flow/(1+cost)^year…

Q: The year-end operating and maintenance costs of a certain drilling platform are estimated to be…

A: Present worth and future worth The value of a financial asset over time at a particular interest…

Q: Five years ago your company purchased some equipment for $125,000. The annual costs for operating…

A: The question is based on the concept of calculation of annual worth of the machine AW= Purchase…

Q: The data required for a new investment are calculated as follows: Cost of the investment: 10.000.000…

A: Depreciation = Cost of investment / Economic life

Q: At an interest rate of 0.06 per year, the present worth of the maintenance cost is nearest to

A: Given PV=5000 Increasing =500 n=15 r=0.06 or 6%

Q: A company is thinking about marketing a new product. Up-front costs to market and develop the…

A: Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment by…

Q: Your firm is considering purchasing a machine with the following annual, end-of-year, book…

A: Average Accounting  Return: It is the ratio of the average after tax profit divided by the average…

Q: A company is trying to decide whether or not to purchase a new model for its fleet. If it purchases…

A: The current worth of all the cash flows expected from any investment together is that project's…

Q: 6. A company will invest $37,072 on a capital expenditure (an asset with multi-year use). They…

A: Net present worth of investment = PV of future cash inflows - initial cost  PV is given by  PV =…

Q: A company plans to spend $ 165126 to install a new machine. Annual maintenance cost is $ 10831.…

A: Information Provided: Initial cost = $165,126 Annual maintenance cost = $10,831 Annual Income =…

Q: A company plans to invest $12,000 dollars on new equipment with an 8 year life to reduce operating…

A: The NPV of a project is used to measure its profitability. It discounts the cash flows to the…

Q: Consider a firm with a contract to sell an asset for $151,000 four years from now. The asset costs…

A: Selling value =$ 151000Present Value =$ 96000Period = 4 YearsInterest Rate = 13%Profit / (Loss ) =…

Q: Charlie Corp. is purchasing new equipment with a cash cost of $100,000 for the assembly line. The…

A: Present value = $100,000Annuity = $22960Period = 6 years

Q: DO IT IN EXCEL, AND SHOW THE FORMULAS If the company purchases the machine, its cost of $276,000…

A: Principal is a value which is borrowed from external sources. It can be done in the form of cash or…

Q: A company plans to spend $ 153703 to install a new machine. Annual maintenance cost is$ 11339.…

A: An initial investment of new machine = $153703 Annual maintenance cost = $11339 Annual income =…

Q: ch time its market value will be 5% of its purchased cost. The equipment rate an annual receipts…

A: Internal rate of return at which present value of cash flow is equal to initial investment.

Q: What is the ARR of a project investment of 1 million pesos of machinery with a life of 10 years and…

A: Accounting Rate of Return (ARR) = Average Net Profit / Average Investment

Q: You have the opportunity to expand your business by purchasing new equipment for $152,000. The…

A: The question is based on the concept of Financial Management.

Q: Fraser Company will need a new warehouse in eight years. The warehouse will cost $500,000 to build.…

A: I/Y = rate = 8% NPER = Number of years = 8 FV = future value = $500,000 CPT =PV = present value =?

Q: A business is planningto purchase a piece of equipment that will produce a continuous stream of…

A: Step 1:We can calculate the integral to find the future value Step 2:To calculate this, we simply…

Q: that currently has 100 units of capital, and their desired level a epreciation rate is 10%, how much…

A: For a company units of capital is an essential input factor. Units of capital along with labor are…

Q: A factory costs $810,000. You reckon that it will produce an inflow after operating costs of…

A: Initial cost (I) = $810,000 Annual net cash inflow (C) = $171,000 Period (n) = 11 years Cost of…

Q: New manufacturing equipment costs $225,000, salvage value is $25,000, and average annual earnings of…

A: a) Average annual rate of return = Average Annual Earning per year / Investment value

Q: You estimated the NOI of your building to be $271,000; with operating costs of $29,000 per year. If…

A: GIVEN ÷  NOI of building = $271000 Operating cost = $29000 Occupancy rate = 83%

Q: A factory costs $970,000. You reckon that it will produce an inflow after operating costs of…

A: The present value function or concept can be used to determine the present value of a future sum or…

Q: Twoyears ago, a certain company invested S450,00 in a project with a simple interest of 8% per year.…

A: The following information has been provided in the question: Amount invested =$450,000 Simple…

Q: A company is considering purchasing a new piece of machinery at a cost $60,000. It is expected to…

A: Economic Value Added = Net Operating Profit After Tax - ( Cost of Capital * Invested Capital)

Q: A manufacturer of video games develops a new game over two years. This costs $850,000 per year with…

A: NPV  is defined as the sum of the present values of all future cash inflows  less the sum of the…