The estimated cost of a completely installed andready-to-operate 40-kilowatt generator is $32,000. Itsannual maintenance costs are estimated at $800. Theenergy that can be generated annually at full load isestimated to be 100,000 kilowatt-hours. If the valueof the energy generated is $0.09 per kilowatt-hour,how long will it take before this machine becomesprofitable? Take the MARR to be 10% and the salvage value of the machine to be $2,000 at the end ofits estimated life of 15 years.

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A: Costs = $12,000 Revenue = $4,000 Operating Expenses = $1,200 Time period = 8 years  Rate = 10%

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A: given, initial cost = $300,000 annual operating cost = $150,000 n = 6 r = 14% salvage value = 14%…

Q: You are considering a new product launch. The project will cost $2,050,000, have a 4-year life, and…

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Q: A highway contractor is considering buying a new trench excavator that costs $130000 and can dig a…

A: Part 2: Explanation:Step 1: Calculate the annual revenue generated by the excavator:The excavator is…

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A:

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Q: A new furnace for your small factory will cost $31,000 and a year to install, will require ongoing…

A: Hi there, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: A new furnace for your small factory will cost $43,000 and a year to install, will require ongoing…

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: Jax Inc is considering the purchase of a new machine for the production of computers. Machine A…

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Q: PT Kolam Makara has a project costs $900,000, has a five-year life, and has a salvage value of…

A:

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Q: Use the following base case information to evaluate the project: PT Kolam Makara has a project…

A: Initial Investment = $900,000 Salvage Value = $130,000 Required rate = 14% Tax rate = 34% Sales…

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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.