Item Freezer Freezer B A Freezer ($25,000 ($30,000) Cost Annual (3,600) (4,000) Electric 5,000 Salvage 6,000 Value Life in 11 Years Cost of 6.00% Capital 11 B) $47,539.67 C) $50,232.02 D) $58,913.56 6.00% A restaurant is trying to determine the lowest total cost for purchasing a replacement freezer. The cost of capital is 6 percent and the freezer should last for 11 years. Using Table 9-2, what is the total cost for Freezer A? A) $28,600.00

Item Freezer Freezer B A Freezer ($25,000 ($30,000) Cost Annual (3,600) (4,000) Electric 5,000 Salvage 6,000 Value Life in 11 Years Cost of 6.00% Capital 11 B) $47,539.67 C) $50,232.02 D) $58,913.56 6.00% A restaurant is trying to determine the lowest total cost for purchasing a replacement freezer. The cost of capital is 6 percent and the freezer should last for 11 years. Using Table 9-2, what is the total cost for Freezer A? A) $28,600.00

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

See similar textbooks

Similar questions

Only typed solution
Help
Problem 2 (10 points) Dr. W Corporation produces a baseball bat that sells for $425. Although the company's production capacity is 5,000 bats per year, only 4,000 bats are currently being produced and sold. The total production costs for 4,000 bats are as follows: Direct materials Direct labor Variable overhead Batch set-up cost (maximum batch size is 400 bats) Fixed cost of storing direct materials Fixed property taxes The Milwaukee Brewers baseball team has offered to purchase 1,000 baseball bats at a one-time special purchase price of $350 per bat. If Dr. W accepts this order, the company will make exactly 1,000 additional bats to fill it. Item to calculate Total relevant revenues for the special order (3) Total relevant costs for the special order (3) $800,000 $400,000 $100,000 $20,000 [$2,000 per batch] $16,000 $40,000 0 Supporting Analysis $425 4,000-$1,700,000 800,000+400,000+ 20,000+16,000 = 1,236,000 Result Increase Decrease $1,700,000 -1 $1,236,000 -3 If Dr. W accepts this…
OUESTION 6Charlie's Hamburgers is considering adding hotdogs to its menu. The hotdogs require purchasing cooking equipment on sale for S18, 000 . The asset has a 6 - year life, will produce a cash flow of S4, 700 in the first year, S5, 100 in the second year, S5, 500 in the third year. S5, 900 in the fourth year, 6, 200 in the fifth year, and S6, 400 in the sixth year. The cost of capital is 10% . What is the project's internal Rate of Retum (IRR) ? A 19.44 % B 017.86% C 24.73%C O D.20.260/0 0 E. 31.25%
Question 8 Milliken uses a digitally controlled dyer for placing intricate patterns on manufactured carpet squares for home and commercial use. It is purchased for $400,000. Its market value will be $310,000 at the end of the 1st year and drop by $46,000 per year thereafter to a minimum of $30,000. Operating costs are $20,000 the 1st year, increasing by 8% per year. Maintenance costs are only $8,000 the 1st year but will increase by 35% each year thereafter. Milliken's MARR is 20%. Determine the optimum replacement interval for the dyer. Year(s)
OUESTION 6Charlie's Hamburgers is considering adding hotdogs to its menu. The hotdogs require purchasing cooking equipment on sale for S18, 000 . The asset has a 6 - year life, will produce a cash flow of S4, 700 in the first year, S5, 100 in the second year, S5, 500 in the third year. S5, 900 in the fourth year, 6, 200 in the fifth year, and S6, 400 in the sixth year. The cost of capital is 10% . What is the project's internal Rate of Retum (IRR) ? A 19.44 % B 017.86% C 24.73%C O D.20.260/0 0 E. 31.25%
Cost Reimbursement (break-even) 13. It costs $3400 for a first-class roundtrip from Boston to London (6560 miles) and there are 3 trips per week. Assuming an MARR of 15% and the following data, how many passengers must fly per trip on average? Item Cost $12,000K 15 years $2000K $225K $0.67 Initial Cost Service Life Salvage Value Annual Crew (labor) Fuel cost per mile Catering per person Fee per landing Maintenance per yr Insurance per yr $75 $250 $237K $166K
QUESTION 7 You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500 of equipment. You plan to work 330 hours per month and charge your customers $18 per hour. Your anticipated costs include: Advertising Gas $33.00 per month $1.20 per hour Depreciation $25.00 per month Assistant's Wages $7.00 per hour Miscellaneous Expenses $950.00 per month Calculate your budgeted contribution margin per hour on the contribution margin income statement.
Please solve the sub parts A,B,and C. Please no reject im needed in 120 minutes thank u
Please Help me with this question
Please dont provide solution image based thanx
QUESTION 9 You plan on starting a lawn mowing business by investing $700 of your own money and purchase $500 of equipment. You plan to work 260 hours per month and charge your customers $22 per hour. Your anticipated costs include: Depreciation Advertising Gas Assistant's Wages Miscellaneous Expenses $25.00 per month $26.00 per month $1.20 per hour $8.00 per hour $20.00 per month Calculate your Variable cost per hour on the budgeted contribution margin income statement. 1

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS