The manager of a canned-food processing plant is trying to decide between two different labelling machines. Machine A will have a first cost of $15,000, an annual operating cost of $2800, and a service life of 4 years. Machine B will cost $21000 to buy and have an annual operating cost of $900 during its 4-year life. At an interest rate of 9% per year, what are the present worth of the two machines?

Q: For the cash flow shown, the value of A when i=15% is 10000 2A

A: According to the question, i = 15% P = 10000 n = 4 Now we have to find out the value of A. To find…

Q: As a rental for a building, the owner received two offers:

A: ANSWER   From the question, we have  a rental for а building the owner received two offers.

Q: For the cash flows shown in the diagram, determine the present worth at time 0 for an interest rate…

A: here we calculate the present worth of the given cashflow so the calculation of the following by…

Q: The maintenance cost for furnaces will be $100,000 per year for 2 years, then changed to $120,000…

A: Cash flow:The net amount of cash or cash equivalents that enters and exits a business or financial…

Q: A boy is celebrating his 16th birthday and we lead 3000 on 17th 18th 19th and 20th birthday for his…

A: The objective of the question is to find out the initial amount that the father needs to set aside…

Q: What amount whould a depoit in a 5.15% saving account co mp man monthly to have a tital of 105, ddo…

A: Given information Total amount=105000 Interest rate = 5.15%  n=18 month

Q: Lina saved RM4000 in a bank that offered simple interest at 10% per annum. After 3 years, she…

A: Calculating the amount of interest that will be charged on a loan can be done quickly and easily…

Q: the maintenance costs associated with an investment are 100,000,000 for the first 10 years and…

A: To calculate the present worth of the annual disbursement, we need to consider the two different…

Q: A certain amount of investment was made annually for 10 years at an interest rate of 6%. On the 14th…

A: Through the course of human history's involvement in finance, the definition of investment has…

Q: An engineering technology group just purchased new CAD software for $5000 now and annual payments of…

A: Present worth: The present worth (PW) of cash flow is the current worth of a cash flow occurring in…

Q: A company purchased new equipment for $250,000 now and annual operations and maintenance costs of…

A: present worth is the amount of money today is worth more than that same amount in the future here we…

Q: An investor wants to invest in the trucking business. To run this business, 5 trucks should be…

A: Annual worth is used for evaluating projects with uneven cash flows over different time periods. It…

Q: A coal-fired power plant has upgraded an emission control valve. The modification costs only $5,000…

A: Given that; Modification costs = $5000 Time period = 7 years Maintenance cost = $2000 for first year…

Q: How much equal amounts of money was deposited each year for 8 years if the account is now worth…

A: Information given is as follows:- Account worth = $20000Total time period = 8 years Interest rate…

Q: Company x uses machines to manufacture x. One machine costs $142,000 and lasts about 5 years before…

A: The rate of return in economics illustrates the percentage gain or loss on an inve­stment compared…

Q: For the following cash flow, find the equivalent annual worth in years 1 to 7 at interest rate of…

A: Given interest rate = 10% First-year cash flow = 800 the annual decrease in cash flow = 50

Q: mount Year Amount, $ Year Amount, $ 6 2600 1 2100 2200 3 2300 2400 5 2500 he value of the linear…

A: Several cash flows are as shown below .The interest rate is 10% per year.

Q: de a solution using present worth method thankyou

A: Given investment = 3000000 Annual revenue = 1200000 Annual cost = 700000 Time = 8 years Interest…

Q: Company A made deposits of $200,000 now and $50,000 every 6 months for 3 years. Determine the future…

A: Deposit at year 0 = 2,00,000 then deposit at every 6 month = 50,000 for 3 years

Q: For the cash flows shown below, find the present worth at time 0; assume i = 10% per year. P = ? 1 2…

A: The present worth of an asset refers to the value of the asset after using it for many years. Every…

Q: warranty expired after 3 years of ownership. The cost of periodic mainten $800 every 2 years. If the…

A: First we compute Calculate the present worth of the repair and maintenance. Second we compute…

Q: Company A made deposits of $200,000 now and $50,000 every 6 months for 3 years. Determine the future…

A: In this case we have to charge interest rate every six months and also consider $50,000 deposit each…

Q: A water company in jeddah wants to borrow money for a new production facility. If the company offers…

A: Borrowing can be calculated by using he following formula.

Q: b) Maintenance cost for a new piece of manufacturing equipment is expected to be RM5,000 in the…

A: When considering a specific rate of return, present value represents the immediate worth of a future…

Q: a construction company is bidding on a project whose costs are divided into $30,000 for start-up and…

A: The objective of the question is to calculate the present worth of the costs for a construction…

Q: An A&E firm planning for a future expansion deposited $36,000 each year for 5 years into a sinking…

A: Yearly deposit in the investment fund is $36,000.Number of deposits =5  and the first deposit will…

Q: A pressure vessel was purchased for $16,000, kept for 5 years, and sold for $3000. Annual operating…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: None

A: Step 1: Determine which financial flows are relevant. In this scenario, the first year's maintenance…

Q: We lease a space for $36,000 per year for 5 years. After 5 years, the cost increases by 10% per year…

A: Given discount rate = 15% Total time period = 10 years Cash flow = 36,000 per year for 5 years, an…

Q: How much money can you borrow now if you promise to repay the loan in 10 year end payments of 5000,…

A: Given information: Annual payment (A): 5000 Time period (N): 10 years Interest rate (i): 18% per…

Q: Find the present worth at time 0 of the chrome plating costs shown in the cash flow diagram. Assume…

A: The present value of an asset refers to the value of the asset after using it for many years. Every…

Q: The net cash flow associated with development and sale of a new product is shown. Determine the…

A: Year 1 2 3 4 5 6 7 8 9 Cash Flow $ -120 -100 -40 +50 +50 +80 +80 +80 +80 PV = -120/1.12 +…

Q: The repair cost for an equipment starts at $80.00 at the end of the 1st year and increases at a rate…

A: Initial repair cost for an equipment=$80Incremental of repairing cost=6% per yearUseful life of the…

Q: A new engineering graduate who started a business horrowed money for I year, The amount of the loan…

A: Given, Loan amount- 23800 Rate of interest- 10% Insurance cost- 5% Setup Cost-  10%

Q: Chemical engineers at a Coleman Industries plant in the Midwest have determined that a small amount…

A: Use the below formula: EPW = Initial Investment + Annual Cash Flow*(P/A,i,Years) + [Annual Cash…

Q: You need P 4000 per year for four years to go to college. Your father invested P8000 in 7% account…

A: At the birth of a child, the father invested P8000, we know that  if we invest x(let) @ 7% then…

Q: Assume annual car payments of $6000 for 4 years and an interest rate of 9.381% per year. What…

A:

Q: A young engineer borrowed P10,000 with 12% interest and paid P2,000 per annum for the last 4  years.…

A: Borrowed amount = P 100,000 Amount paid = P 20,000 (four years) Amount paid in 5th year =  A…

Q: Dollars 10000 is invested for 4 years in a bank earning a simple interest rate of 10% per annum.…

A: Invested amount = $10000 Time period for which the amount is invested = 4 years Interest rate = 10%

Q: 011,000 070,500 51,500

A: Future worth is the worth of a resource at a particular date. It estimates the ostensible future…

Q: A sum of $5000 is deposited in a project account and leftover to earn interest for 15 years. If the…

A: Amount deposited in a project account = $5000 The interest rate on the amount = 12% Time duration =…

Q: Lorilei Cruzado just purchased new CAD software for P 5000 now and monthly payments of P 500 for 6…

A: To find the present worth, we discount the future values with respect to the interest rate.

Q: IS $20,0 5 yea уears e seu pu e. At the end of 5 years it can be sold for $4000. the annual interest…

A: Equivalent  annual worth is the annual cost of owning ,operating and maintaining and asset over its…