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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When using present worth analysis, we assume that a machine that costs $5000 today can be expected to cost the same amount several years in the future. O True False
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Required rate of return is 25% a year. You are planning to invest $3,000 in new equipment. The investment will generate cost savings of $2,000 a year for two years after that the salvage value is zero. Compute the payback period. O 0.667 years O 4 years O 2.5 years O 1.5 years O not enough information
Please answer as quickly as possible A project is currently under review. An initial investment of $87,000 would be necessary for equipment. The profit is expected to be $21,000 each year, over the 6 year project period. The salvage value of the equipment at the end of the project period is projected to be 17,000. Assume a MARR of 9%. Find an ERR for this project (exact value or smallish interval). (Be careful with +/- signs) (if your approach requires a starting point, use 12%)
A project is estimated to cost P120k, last 8 years & have a salvage value of P20k. The annual gross income is expected to average P50k & annual expenses is P5k. If capital is earning 10% determine if this is a desirable investment using annual cost method, what is the net cost. a). P24,255.598 b). P42,525.598 c). P42,255.598 d). P24,525.598
Consider a paletizer at a bottling plant that has a first cost of $141,000, operating and maintenance costs of $16,300 per year, and an estimated net salvage value of $23,500 at the end of 34 years. Assume an interest rate of 8.50%. What is the present equivalent cost of the investment ir the planning horizon is 34 years? $319,326 $309,800 1370,300 O$334,800
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Solve the attachment
If the annual worth of the project is -7500 (negative 7500), its annual benefits are 2000 yearly, the operating costs are 500 yearly, and the project runs for 18 years, if i=12% then the first cost of this project is most nearly 55078 no correct answer 64418 74365 52344 O 65265
Find C that makes the two cash flows of Project A & Project B over :5 years to be equivalent Project A Project B $1000 i=10% i=10% $500 0 1 2 3 4 5 0 1 2 3 4 5 $792 O $872 O $972 O $572 O
Time left 1:14:17 What is the Future worth of the following cashflows: First Cost = 52,000$, 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
Based on past experience, a chemicals firm estimates that the cost of new capacity additions obeys the lawf(y) =.0205y58where y is measured in tons per year and f(y) in millions of dollars. Demand isgrowing at the rate of 3,000 tons per year, and the accounting department recommends a rate of 12 percent per year for discounting future costs.a. Determine the optimal timing of plant additions and the optimal size of eachaddition.b. What is the cost of each addition?c. What is the present value of the cost of the next four additions? Assume anaddition has just been made for the purposes of your calculation. (Refer toAppendix 1–A for a discussion of cost discounting.)