The average monthly electric bill of a manufacturing plant is 2000 the production manager of the plant planned to increasethe power factor from an average of 70% to 90% by connecting four of 15 KVAR power condensers which can be procured at 1500 each and gain a monthly savings of 150 the installation cost is 500 annual maintenance cost is 200. Salvage value is 10% of its initial value for a life of 10 years. If interest is 10% compounded annually, how long will the power condensers pay for themselves

Q: A machine costs $10,000, has an estimated life of 10 years and a scrap value of $1500. Assuming no…

A: Annual sinking funds are created to accumulate money required in the future requirements of the…

Q: A machine is under consideration for investment. The cost of the machine is P25,000.00. Each year it…

A: The discounted payback period is a capital budgeting tool that helps to evaluate a project's…

Q: Annual maintenance cost for a particular section of highway pavement are $3,000.The placement of a…

A: Present value is the current worth of the cash flow at a certain arte of interest and period of…

Q: The initial cost of a van is $22,800; its salvage value after 5 years will be $8500. Maintenance is…

A: The equivalent uniform annual cost(EUAC) is the annual cost of maintaining and operating assets…

Q: Campbell Manufacturing is considering the purchase of a new welding system. The cash benefits will…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: A machine, costing $30,000 to buy and $2.500 per year to operate, will savemainly labor expenses in…

A: Minimum required annual savings are the savings at a point where NPV is zero. This implies the point…

Q: A computer purchased for $1200 will have a salvage value of $600 after 6 years. Annual maintenance…

A: EUAC or Equivalent uniform annual cost is the annual cost associated with operating and maintaining…

Q: The ABD Company is building a new plant, whose equipment maintenance costs are expected to be 25,000…

A: Annual cost in year 1 (A1) = 25000 A2 = 7500 A3 = 10000 A4 = 12500 A5 = 15000 A6 = 17500 A7 = 20000…

Q: You are considering purchasing a dump truck. The truck will cost $45,000 and have operating and…

A: Computation:

Q: A company is considering the purchase of a new machine for $67,000. Management predicts that the…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: A new punching machine will cost $4,593. At the end of its 10 years useful life, the machine can be…

A: NPV is also known as Net present value. It is a capital budgeting techniques which help in decision…

Q: our company is looking at purchasing a front-end loader at a cost of $120,000. The loader can be…

A: Payback period (PBP) refers to the period or duration within which the company is able to recover…

Q: A machine has a useful life of 10 years. It requires a semi- annual operating cost of $3,000 for the…

A: Useful life = 10 yearsSemi-annual operating cost = $3000Number of years = 4Growth rate = 6%Interest…