typing answer with explanation and conclusion Manufacturing company spent $28,000 on a new conveyor belt. If the conveyor belt resulted in cost savings of $4800 per year, the length of time it would take for the company to recover its investment at 7% per year is closest to: a.7 to 8 years b.11 to 12 years c.13 to 14 years d.9 to 10 years
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- You are given the following financial data about a new system to be implemented at a company: Investment cost at n = 0: $20,000. Investment cost at n = 1: $10,000. Useful life: 10 years. Salvage value (at the end of 11 years): $6,000. Annual revenues: $15,000 per year. Annual expenses: $5,000 per year. MARR: 10%. Note that the first revenues and expenses will occur at the end of year 2. (a) Determine the conventional-payback period. (b) Determine the discounted-payback period.A manufacturing company is trying to decide between the two machines shown below. Determine which machine should be selected on the basis of rate of return. Assume the MARR is 20% per year. Machine A Machine B Initial Cost, $ -18,000 -35,000 Annual operating cost, $/year -4,000 -3,600 Salvage value, $ 1,000 2,700 Life, years 3 6A manufacturing company spent $30,000 on a new conveyor belt. If the conveyor belt resulted in cost savings of $4200 per year, the length of time it would take for the company to recover its investment at 8% per year is closest to: (a) Less than 9 years (b) 9 to 10 years (c) 11 to 12 years (d) Over 12 years (e) None of the above a b C d. e
- Quary Company is considering an investment in machinery with the following information. Initial investment Useful life Salvage value Expected sales per year (a) Compute the investment's annual income and annual net cash flow. (b) Compute the investment's payback period. Required A Required B Complete this question by entering your answers in the tabs below. $ 335,000 9 years $ 20,000 16,750 units Annual Amounts Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Selling price per unit Compute the investment's annual income and annual net cash flow. Expenses Income Net cash flow $ 75,375 35,000 8,375 $ 101) A manufacturing plant manager has purchased a new bologna slicing machine for $24,500. The new machine is expected to produce an extra $8,000 of revenue and have an annual operating expense of $3,000. If the useful life is expected at 6 years and i = 7% per year, what is the PW? Select one: a. $35000 b. $23835 c. $ 25000 d. $50000Consider a machine that initially cost $6,000 and has these estimated annual expenses and market value: End of year Annual expenses, $ 2,000 2,000 2,000 3,000 3,000 Market value at end of Year, $ 5,200 4,200 1 2 3 3,200 2,200 1,200 4 5 If the MARR is 9% per year, determine its economic service life (Suppose an Economic Service Life occurs in the fourth or fifth year. Show Cash Flow Diagram for those years).
- Walden Industries is considering investing in production−management software that costs $620,000, has $60,000 residual value, and leads to cost savings of $2,310,000 per year over its five−year life. Calculate the average amount invested in the asset that should be used for calculating the accounting rate of return. A. $340,000 B. $60,000 C. $680,000 D. $620,000DuraTech Manufacturing is evaluating a process improvement project. The estimated receipts and disbursements associated with the project are shown below. MARR is 6%/year. What are the Present Value, Future Value, and Annual Worth of this investment? End of Year Receipts Disbursements 0 $5,000 1 $200 2 $300 $600 $1,000 $1,500 3 4 5 $0 $0 $2,000 $4,000 $3,000 $1,600Revenues generated by a new tad product are forecast as follows: Year 1 2 3 Thereafter Expenses are expected to be 40% of revenues, and working capital required in each year is expected to be 20% of revenues in the following year. The product requires an immediate investment of $46,000 in plant and equipment. Required: a. What is the initial investment in the product? Remember working capital. b. If the plant and equipment are depreciated over 4 years to a salvage value of zero using straight-line depreciation, and the firm's tax rate is 20%, what are the project cash flows in each year? c. If the opportunity cost of capital is 10%, what is project NPV? d. What is project IRR? Complete this question by entering your answers in the tabs below. Req A Year Revenues $ 40,000 20,000 15,000 10,000 0 1 If the plant and equipment are depreciated over 4 years to a salvage value of zero using straight-line depreciation, and the firm's tax rate is 20%, what are the project cash flows in each…
- Alpha company invested $10,000,000 in manufacturing equipment for producing small wastebaskets. If the company uses an interest rate of 15% per year, the amount of money it will have to earn each year to recover its investment in 7 years is closest to: Select one: a. $6,403,600 b. $4,403,600 c. $2,403,600 d. $9,403,600A hydraulic lift is purchased for a warehouse for $60,000. This lift is expected to generate $7000 in annual income for its useful life of 12 years. No Salvage value is expected. O&M costs are estimated to be $1000 annually. What is the approximate rate of return for this investment? [Enter your response as a percentage to one decimal point]Consider the financial data for a project given in the table below. Initial investment Project life Salvage value Annual revenue $70,000 6 years $10,000 $26,000 Annual expenses $7,000 (a) What is i for this project? 18.1 % (Round to one decimal place.) (b) If the annual expense increases at a 7% rate over the previous year's expenses, but the annual income is unchanged, what is the new / - 16 % (Round to one decimal place.) (c) In part (b), at what annual rate will the annual income have to increase to maintain the same i obtained in part (a)? The annual income has to increase at% per year (Round to one decimal place.)
