The alternatives shown on the basis of their capitalized costs using an interest rate of 10% per year. What is the capitalize cost for machine A. Machine A Machine B First cost, SR -100,00 -800,000 Annual Operation Cost, SR/ year Salvage value, SR Life (years) -70,000 -12,000 8000 1,000,000 $850,996 $920,000 $900,550 -$950,696 O o o O

The alternatives shown on the basis of their capitalized costs using an interest rate of 10% per year. What is the capitalize cost for machine A. Machine A Machine B First cost, SR -100,00 -800,000 Annual Operation Cost, SR/ year Salvage value, SR Life (years) -70,000 -12,000 8000 1,000,000 $850,996 $920,000 $900,550 -$950,696 O o o O

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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! Show Full Solution ! *use Capitalized Cost Formula NOT EXCEL. Answer: P29,536 5. An asset was purchased for P100,000 and retired at the end of 15 years, with a salvage value of P4,000. The annual operating cost was P18,000. Determine the annual cost of the asset based on an interest rate of 8%
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The information below relates to the purchase of equipment: investment in the project: $10,000 Net annual cash inflows: 2,400 Working capital required: 5,000 Salvage value of the equipment: 1,000 Life of the project: 8 years At the completion of the project, the working capital will be released for use elsewhere. Compute the net present value of the project, using a discount rate of 10% $606 $8,271 ($1,729) $1,729
Please help with answers asap
Input area: Installation cost Pretax salvage value Operating cost per year Initial NWC Tax rate Discount rate *Depreciation straight-line over life Output area: Annual depreciation charge Aftertax salvage value OCF NPV $ SA SA SA GA $ 385,000 $ 60,000 $ 135,000 35,000 21% 10% ᏌᏊ Ꮚ Ꮚ $ 77,000 $ 47,400 $ 122,820 5
What is the present worth equivalent of the machine considered to be the most preferred choice? (i=10%) show detailed solution
A plant erected to manufacture sock has a first cost of P10,000,000.00 with an estimated salvage value of P1000,000.00 at the end of 25years. Find its appraised value to the nearest P100 by the sinking fund method assuming an interest rate of 6% at the end of 10 years and 20years.
The equivalent annual worth of alternative A is closest to:a. $-25,130b. $-37,100c. $-41,500d. $-42,900
Which of the two machines must be selected? Why? (i=10%)
Compare three alternatives on the basis of their capitalized costs at /= 8% per year and select the best alternative. Alternative E F G $-460,000 $-30,000 $90,000 4 First Cost AOC, per Year Salvage Value Life, Years $-80,000 $-65,000 $40,000 2 The capitalized cost of alternative E is $ The best alternative is (Click to select) ▼ alternative F is $ $-960,000 $-3,000 $450,000 ∞0 and alternative G is $
Compare three alternatives on the basis of their capitalized costs at i = 13% per year and select the best alternative. Alternative E F G First Cost $-85,000 $-325,000 $-825,000 AOC, per Year $-65,000 $-20,000 $-6,000 Salvage Value $25,000 $75,000 $500,000 Life, Years 2 4 ∞ The capitalized cost of alternative E is $ , alternative F is $ , and alternative G is $ . The best alternative is E G F .
Its required to select one of the two machines, if you know that the firms MARR-12% and if the costs are shown below: Project A Project B Initial cost, $ 7650 12900 Maintenance cost, S/year 1200 900 Salvage value, $ 2000 Economic life, year 4 Compare the two-alternative using: 1-Equavlent Annual worth comparison. 2- Present worth comparison

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