P1: Compute payback period and describe its use..FasTrac is considering buying a new machine:Cost..$16,000Useful life..8 yearsSalvage value.$ 0Expected production..30,000 unitsProduct selling price per unit..$ 30Calculate the payback period.

Payback period is the period at which the cumulative cash flows become equal to the cost incurred on…

Answered: P1: Compute payback period and describe…

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

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Subject : Economy and Engineering Management
A machine with a purchase price of R1 200 000 is estimated to eliminate manual operations by R400 000 per year.The machine is expected to have a useful life of four years. Use the information provided above to calculate the Internal Rate of Return (expressed to twodecimal places) using interpolation.
Vijay
Q.2- if the rate of return is 10 % and all equipment shown in the following table have service life for 20 years with no salvage value, which equipment should be selected using the incremental benefit cost analysis. Equipment First cost,S Y 1600000 1500000 1900000 1200000 Annnal M&O, S/year 50000 60000 35000 so000 Benefits, S'year Dis benefits, S/year 269000 260000 282000 250000 13000 15000 22000 20000 Life, years 20 20 20 20
A machine cost is 3000$ and salvage value 850$, if the rate of interest is 9% and number of years are 5 then what willI be the present worth for fixed output condition? Select one: a. 2448$ b. 2418$ c. 2427$
An organization is trying to decide between two miling machines (standard or delue) for a manufacturing operation. Use present worth analysis and an interest rate of iR lo detes milling machine is preferred from an economic perspective. iR=25% R=4
An engineer is considering the purchase of a new set of batteries for an electric pallet jack. Given the cost, annual benefit, useful life, and i = 5%, conduct a net future worth analysis to decide which alternative to purchase.
Q5: The machine using PW with first cost $75000, savings the annual operating cost $11000 per year and salvage value $55000 at the end of 4 years find the (P/F, i*,6).
3:Consider the following financial data for a project. 2- Find the (ROR) for the project.. We jus المصرر AP 1 = 10) b- If the the expense will increase by 10%, find the annual revenue that will make (POR-10%) Initial investment 18 000 CU Annual revenue 5000 CU Annual expense 3000 CU Salvage value 4500 CU Project life 12 YEARS
Compare the machines below using present worth analysis at i10% per year and find which one should be selected Machine Y First Cost Operating Cost Savage Lfe cycle Machine X 20.000 3.000 3.000 3years Firat Cost 30.000 .000 Annuel Operating Cost Salvage Life cycle 3.000 6 yoars
r

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P1: Compute payback period and describe its use.. FasTrac is considering buying a new machine: Cost.. $16,000 Useful life.. 8 years Salvage value. $ 0 Expected production.. 30,000 units Product selling price per unit.. $ 30 Calculate the payback period.