MARR is 8.4 % 3500 4000 4500 Year 0 S000 5500 6000 6500 7000 1000 1500 22000 6000 2000 5600 2500 5200 3000 3500 4000 Find the present worth? 4800 4400 4000 8000 4500 4000 5500 5200 1800 4900 4600 2000 4300 2200 4000 2400 2600 3000 4000 500 2800 6000 3000 3200 salvage 2000 3400 3600

Q: A machine that costs $4456, has a life of 14 years and no scrap value. If money worth 10% then the…

A: Capitalize cost refers to the expense that is added to the fixed asset which is subject to…

Q: ORTH METHO

A: Annual Worth is uniformly equivalent AW of all estimated income and costs during the lifetime of a…

Q: 7   A dump truck was bought for P 30 000 six years ago. It will have a salvage value of P 3 000…

A: The Sinking Fund Method is a method of depreciation in which money are allowed to accrue with the…

Q: A computer with a useful life of 12 years has initial cost of $3200 and a salvage value of $100.…

A: MACRS is accelerated method of depreciation in which there is more depreciation during the initial…

Q: Purchase price Expected useful life Scrap value Depreciation per year Minimum required rate of…

A: The payback period is the period in which the investment is recovered completely. It is calculated…

Q: Raghubhai

A: The objective of this question is to find out the rate of return expected from the purchase of an…

Q: The analysis is most sensitive to changes in which component? a. Annual Revenue b. Initial…

A: Sensitivity Analysis is a financial model which is used in business analysis . It studies how target…

Q: Which of the two machines should be installed?

A: Probability for installing two machines will be: = Probability×Returns(1+risk free rate)Time

Q: Table 1: NPV and EVA investment decision analysis of agricultural water project (unit: 10 thousand…

A: Market Value Added: It is possible to calculate market value added (MVA) by subtracting the market…

Q: A project has an annual rate of return of 15%. The project cost $90000, has a 5-year useful life,…

A: Depreciation is a non-cash expense. Depreciation is charged on fixed asset over a estimated useful…

Q: 24. When a wind generator is installed th requires no further cash payment. How dition, it must…

A: Notice that the smallest division on the Y-axis is $5000. a) By looking at the revenue at the end of…

Q: The cost of a L000 sqt building in 2013 was 530,000. What is the cost of a 1500 sqt building in 2020…

A: Given:Cost of 1000 Sq ft building in 2013 was $30000Cost capacity factor=0.86Cost index value are…

Q: NITIAL COST R100 000 R110 000 EXPECTED ECONOMIC LIFE 5 YEARS 5 YEARS EXPECTED DISPOSAL/RESIDUAL…

A: Payback period can be defined as the time taken to recover the initial capital invested in a…

Q: Given: The interest rate is 3%, P = $150,000, and A₁ = $25,000. The salvage that makes the sum of…

A:

Q: 10. You are also considering another project with a physical life of 3 years; that is, themachinery…

A: Operate for full 3 years operation the NPV is  $96,952.44 Terminate the project at the end of year 2…

Q: How much must be invested now to receive $14,000 for ten years if the first $14,000 is received…

A: The present value depends on the payment or receipt interval. The present value is computed by…

Q: I was working on the Pacific 13 A questions nad I am stuck at trying to figure out how the expected…

A: The expected value in finance is a concept that calculates the probability-weighted average of…

Q: 22) The price of $6000 face value commercial paper is $5900. If the annualized investment rate is…

A: A commercial paper is the promesory note which is used to finance the unsecured funds. It is the…

Q: You buy a truck for 85,000. It has an estimated Salvage Value of 20,000 at the end of 10 years.…

A: Double-declining balance method (Accelerated method): In this method of depreciation, the…

Q: If the interest rate is 8%, the net present worth of this equipment is:

A: Net Present Value: It is the net present worth of the annual cash flows and the initial cost of…

Q: Palmer Corpscomatening the purchase of a new pece of equipment. The cost savings hom the equipment…

A: Payback period (PBP) refers to the period or duration within which the company is able to recover…

Q: Using DBM, when is the t year with a book value of P8,592 if the asset is bought at a price of…

A: Declining Balance Method :— Under this method of depreciation, depreciation is calculated by…

Q: Using the MACRS rates from the following table, what is the book value of a $3,000 computer after 5…

A: The modified accelerated cost recovery system (MACRS) is a depreciation system that allows the…

Q: What rate of return would you need if you wanted to accumulate $1,000,000 in 25 years and invest…

A: Rate of return: It implies to the rate that is often expected or charged by the investor from the…

Q: What is the book value of an asset at the beginning of year 8 if its FC is P2 500 000 and with…

A: Depreciation is an expense of the business and is a way of writing off the cost of the asset over…

Q: The risk of an investment project that may have (1) 10% chance of losing $1000; (2) 20% chance of…

A: P1 = 10%, Cashflow (C1) = - $1000 P2 = 20%, Cashflow (C2) = $200 P3 = 30%, Cashflow (C3) = $800 P4 =…

Q: suppose interest rate is 10 percent and the income stream is (y1, y2) = $1200; and $ 990, then the…

A: Interest Rate = 10% Income in year 1 = 1200 Income in year 2 = 990

Q: Year 0 Income $ 20000 Cost $ 1 20000 8000 8000 4 5 6 7 8 9 2 20000 3 20000 30000 30000 30000 30000…

A: Net Present Worth (NPW), also known as Net Present Value (NPV), is a financial metric used to…

Q: but in 4 years, the cost will b mpany sets aside $8 million will the inflation rate have to unt of…

A: Inflation rate can be calculated usning below formula Inflation rate =  (Current value - Base value)…

Q: A machine purchased three years ago for $313,000 has a current book value using straight-line…

A: Keep old machine Purchase new Machine Annual Operating expense $32000 $9000 x No. of years 10…

Q: Use the financial calculator app to compute the present value of $500,000 to be paid in 10 years,…

A: Present value is the equivalent today of the future value depending the time value of money and…

Q: Boulder Co is thinking about purchasing a new machine that would cost $336. The machine. has a…

A: Payback period is a capital budgeting technique used for making investment decisions.It is the time…

Q: Find the PV of $1,000 due in 6 years if the discount rate is 12%. Round your answer to the nearest…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: 2- Return to the abov end of year 3 instr

A: Market value refers to the concept of evaluating the price of an asset as per the current market…

Q: You invested $100,000 now in a venture that has a rate of return of 10% per year. In return, you…

A:

Q: Sunland is contemplating a capital investment of $19400. The cash flows over the project's five year…

A: Capital budgeting is one of the useful concept used for selecting best project. Payback period is…

Q: a car was purchased two years ago it value depreciates at 20% per annum if its present value is…

A: Calculation of depreciation per year: Present value * depreciation rate

Q: If MARR is 12% fer year, compare the ternatives shown below -> Present worth Method. Alternative I…

A: We will use a 12% rate and will calculate the present worth by applying the formula for both…

Q: 6 A new machine costs $X. It will be used for Y years then sold for $Z. If interest is A%, what net…

A: Net savings means the total income less the costs of operation.

Q: • Salvage = 30000 $ %3D ne book value at year 10 is $. (o g 1234567+ 123 and 1234

A: Step 1 Depreciation=2×SLDP×BV Where: SLDP = Straight-line depreciation percent BV = Book value at…

Q: Q.2- if the rate of return is 10 % and all equipment shown in the following table have service life…

A: The cost-benefit analysis is an important method of capital budgeting. It refers to the ratio…

Q: Question 2. By using the Present Worth Analysis, identify the project to be selected when the…

A: Decision making is the process of making choices from the available alternatives based on the…

Q: MACHINE A MACHINE B INITIAL COST R100 000 R110 000 EXPECTED ECONOMIC LIFE 5 YEARS 5 YEARS EXPECTED…

A: The question is related to Capital Budgeting. The Net Present Value is  calculated with the help of…

Q: Purchase price Expected useful life Scrap value Depreciation per year Minimum required rate of…

A: Time value of money :— According tor this concept, value of money in present day is greater than the…

Q: Wildhorse Inc. is considering modernizing its production facility by investing in new equipment and…

A: The rate of return refers to the profit earned over an investment made by the investors. It is…