processing plant consumed 600,000 kwh of electric energy annually and pays an average of ₱2.00 per kwh. A study is being made to generate its own power to supply the plant the energy required, and that the power plant installed would cost ₱2,000,000. Annual operation and maintenance, ₱800,000. Other expenses, ₱100,000 per year. Life of power plant is 15 years; salvage value at the end of life is ₱200,000; annual taxes and insurance, 6% of first cost; and rate of interest is 15%. Using the sinking fund method for depreciation, determine if the power plant is justifiable?

Q: The construction cost of a permanent water park is $550,000. Annual maintenance and operation costs…

A: Note: As per the policy, we are supposed to solve one question at a time. Kindly repost the other…

Q: SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los…

A: First stage allocation is the allocation of overhead costs to different activity cost pools. It is…

Q: A project capitalized for ₱25,000 invested in depreciable assets will earn a uniform, annual income…

A: Here, Investment = I = P 25,000 Uniform annual income = P 29,647 O & M cost = P 5,000 Taxes and…

Q: am. 101.

A: First, we need to calculate the net cash flow for each year. The net cash flow is the increase in…

Q: A 250-gallon reactor cost $780,000 when it was constructed 20 years ago. What would a 750-gallon…

A:

Q: It costs P50,000 at the end of each year to maintain a section of Kennon road in Baguio City. If mor…

A: Value of money changes with time and amount invested and money can be earned elsewhere by investing…

Q: A special purpose machine toolset costs $20,000. The toolset will be financed through a bank loan of…

A: The question is based on the calculation for benefit of buying a special purpose machine , which is…

Q: A widget machine will cost $480,000.  The anticipated increase in revenue will be $140,000/year for…

A: Cost of the machine = $480000 Revenue increase for 5 years = $140000 Annual expenses for 5 years =…

Q: value aft

A: Service Output Method also known as Working Hours Method. The formula : Depreciation per hour as, =…

Q: The equipment needed to manufacture a product costs $1,000,000 to purchase.  This equipment has a…

A: SOLUTION- BREAK EVEN POINT  IS THE POINT AT WHICH TOTAL REVENUE EQUALS TO TOTAL COST OR EXPENSES.

Q: Valentina Allegra de Fontaine Inc. is considering the purchase of a new machine for use in its…

A: The proposed investment by Valentina Incorporation in a machine that is estimated to save…

Q: A high-pressure reactor vessel in a pharmaceutical company was purchased for $200,000. It has a…

A: After-tax cash flow of the vessel is the net proceeds from the sale of vessel. Net proceeds means,…

Q: The equipment needed to manufacture a product costs $1,000,000 to purchase. This equipment has a…

A: 1) Statement showing equivalent uniform annual cost associated with this equipment when 10.000 units…

Q: A printing machine is bought at P 1.3 million and is estimated to have a salvage value of P100,000…

A:

Q: Blossom Manufacturing, Inc., needs to purchase a new central air-conditioning system for a plant.…

A: Equivalent annual cost = (Cost of system*Cost of capital)/[1-(1+cost of capital)^-time period]…

Q: .Calculate the NPV method and discount rate of 12%

A: Net Present Value (NPV) is a capital budgeting technique used for finding the profitability of the…

Q: A company sells Gizmos to consumers at a price of $90 per unit. The costs to produce Gizmos is $38…

A: Operating Cashflow = PAT +Depreciation

Q: A widget machine will cost $480,000.  The anticipated increase in revenue will be $140,000/year for…

A: Internal rate of return is the rate expressed in percentage terms which equalize the net present…

Q: A machine costs $555,000 to purchase. Fuel, Oil, Grease, and minor maintenance are estimated to cost…

A: Calculating the hourly operating cost of a machine involves several factors. Begin by dividing the…

Q: Westland Manufacturing spends $20,000 to update the lighting in its factory to more energy-efficient…

A: PAYBACK PERIOD Payback period is the period in which money invested in capital asset is recovered…

Q: You purchased an industrial oven five years ago for $70,000. O&M costs are $20,000 this year but…

A:

Q: Reacher Corporation is evaluating a proposal to purchase a new machine that would cost $100,000 and…

A: To further understand the decision-making process, let's go over the computations in more detail.…

Q: A 1000ft (one lane) asphalt road costs P3.8M. It requires no upkeep until the end of 3 years when…

A: Time Period 20 Initial Cost P 38,00,000.00 Repair Cost at the end of 3rd year      P 80,000.00…

Q: machine cost is $50,000. fuel and minor repair cost is cost is # 15.00 per hour. A set of tire costs…

A: Salvage value is the expected book value of an asset after depreciation, based on what the firm…

Q: Mio is going to buy a new machine for manufacturing its product: Machine A has a first cost of…

A: First cost of A (X) = P 50000 Annual maintenance cost (A) = P 6000 Salvage value (S) = P 2000 r = 9%…

Q: A machine has a first cost of $10,000 and an expected salvage value of $900 when it is sold.…

A: Payback period is the period which depicts the recovery period within which the cash outflows of the…

Q: A large textile company is trying to decide which sludge dewatering process it should use ahead of…

A: The problem is asking us to compare two systems, a centrifuge and a belt press, based on their…

Q: Use the PW method. Show the cash flow diagram if necessary and complete solution. Do not use excel…

A: i)  Present worthIt is not worthwhile to purchase the new machine because its present worth is less…

Q: In an energy systems installation, following financial requirement was identified. Capital cost of…

A: Payback period is the time period in which initial investment recoverable. There are two types of…

Q: e typing answer with explanation and conclusion A new production system for a factory is to be…

A: In long term projects it is necessary to do financial analysis of the projects based on time value…

Q: am. 131.

A: Step 1: Step 2: Step 3: Step 4:

Q: Il occur in a 6-year cycle as shown below, 2 3 End of Year: Maintenance: 1 $35,000 $35,000 $35,000…

A: in this problem we have to calculate present value of all cost and than find out present value…

Q: A huge utility company paid P100,000 for five secondhand trucks from a smaller utility company. The…

A: As per the information provided : Purchased five secondhand trucks - P100,000 Automobiles purchased…

Q: Ivage value after 5 years = $120,000 nnual insurance premiums = $3,000 nual tax = $1,800 el cost per…

A: In this we have to calculate total annual cost of machine and see whether it is feasible or not.

Q: A machine with an eight-year life and $5000 salvage is purchased for $40,000. Annual costs of…

A: As the tax rate is not given in the question, Tax affect on depreciation and salvage value can be…

Q: A company sells Gizmos to consumers at a price of $117 per unit. The cost to produce Gizmos is $27…

A: Conclusion:The operating cash flow each year for the company is $1,221,200​. This represents the…

Q: Calculate the hourly operating cost (under average conditions) for a 180- horsepower motor grader…

A: The operating cost that those costs are incurred to run the operations of the business. The per-hour…

Q: The table given below lists the relevant cost items for a specific system purchase. The operating…

A: Answer a) Basic cost =$160000+$15000+$15000=$190000Salvage value =$160000 x 25%=$40000Depreciation…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.