3. The ABC company is planning to putchase a machine known as machine X. Machine X would cost $40. 000 and would have a useful life of 10 yearswith zero salvage value. The expected annual cash inflow of the machine is $10,000. What is payback period (as years) of machine X?O A) 3,5OB) 4,5OC) 3,017160508OD) 4,0OE) 2,5118017860581800

The ABC company is planning to purchase a machine known as machine X. Machine X would cost $40. 000 and would have a useful life of 10 with zero salvage value. The expected annual cash inflow of the machine is $10,000. What is payback period (as years) of machine X? O A) 3,5 OB) 4,5 Oc) 3,0 OD) 4,0 OE) 2,5 17

The ABC company is planning to purchase a machine known as machine X. Machine X would cost $40. 000 and would have a useful life of 10 with zero salvage value. The expected annual cash inflow of the machine is $10,000. What is payback period (as years) of machine X? O A) 3,5 OB) 4,5 Oc) 3,0 OD) 4,0 OE) 2,5 17

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Amazing Airlines has the following customer metrics: Average customer relationship length: 8 years Average number of flights per customer per year: 2.5 Average cost per ticket: $600 Profit margin per customer: 8% The net CLV for Amazing Airlines is closest to? O $18,000 $960 $1260 O $12,000
A salesman offers a businessman two options for certain machine. Using the Present Value (PV) Method in determining the more economical, what is the Present Value of Option A? Assume interest is 24% cpd. a. Option A: First Cost – P203,692; Annual operating cost – P93,768; Salvage Value – P15,969; and Useful life – 4 years Option B: First Cost – P65,000; Annual operating cost – P20,000; Salvage Value – P2,500; and Useful life – 6 years
Time left 1:14:17 What is the Future worth of the following cashflows: First Cost = 52,000$, AOC = 4,000$, Salvage value = 12,000$, n = 13 and i= 14%. O a. -73,185$ O b. -12,527$ O c. 49,606$ O d. -401,960$ Recovery period is the remaining interval of time in the life of the asset in years. Select one: a. True O b. False
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