Which of the two options would be the best if you knew that the interest rate approved by the company is 6%?

Q: Komoka Enterprises needs someone to supply it with 146,000 cartons of machine screws per year to…

A: The various types of assets are classified under various asset classes for capital consumption…

Q: RightPrice Investor., is considering the purchase of a $400,000 computer with an economic life of…

A: For evaluating whether the Computer/ Machine is worth it or not we should check the Net present…

Q: Your company is preparing for a bid to supply garden tools to Garden Pro, Inc. The contract calls…

A: NPV means Net present value.It is a capital budgeting technique used for making investment…

Q: olorado Cleaning has a 5-year maximum acceptable payback period. The firm is considering the…

A: PAYBACK PERIOD : It is the period during which the firm recovers its initial cashflows. formula:…

Q: Tomoya Inc. announced a tender to supply it with 200,000 pcs of DC Motor per year for its…

A:

Q: present worth of this investment.

A: We can populate the cash flows as below and calculate the NPW. Pls note that 24% compounded monthly…

Q: (c) Annual rate of return. (Round answer to 2 decimal places, e.g. 15.25%) Annual rate of return %

A: One of the traditional techniques that is used for capital budgeting is the annual/ accounting rate…

Q: 1 Coast-to-Coast Inc. is considering the purchase of an additional delivery vehicle for $38,000 on…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: iddy Toy Corporation needs to acquire the use of a machine to be used in its manufacturing process.…

A: In lease finance there is initial amount required and all cost are born by the owner of the…

Q: Colorado Cleaning has a 5-year maximum acceptable payback period. The firm is considering the…

A: Pay-Back(PB) Period shows time period required to fully recover initial outlay of proposal from…

Q: Sprite Canada has decided to acquire a bottling machine for its existing plant. The cost of the…

A: Lease indicates an agreement among lessee and lessor where lessor gives right to use the asset to…

Q: determine the minimum number of days per year the rig must be needed to justify its purchase.

A: Information Provided: Purchase price = $24,000 Service life = 4 years Salvage value = $1800 Fixed…

Q: You are evaluating a potential purchase of several light-duty trucks. The initial cost of the trucks…

A: Salvage value net of tax is the amount which is received by the investor from selling the assets at…

Q: Your client, Albert Lee Leasing Company, is preparing a contract to lease a machine to Souvenirs…

A: The annuity factor of 12% for 25 years is determined to be 7.8431, based on the factor table. Thus,…

Q: A company that sells computers has proposed to a public utility company that it purchase a small…

A: Replacement studies are an analysis involving the comparison of an existing and a proposed…

Q: Fudd and Nephews, Inc., purchased a small excavator for $100,000 two years ago. The excavatorwas…

A: Present Worth(PW) is value of amount of series of amount that is to be paid or received at future…

Q: Be-low Mining, Inc., is trying to decide whether it should purchase or lease new earthmoving…

A: Formula to make the decision of buy or lease is as follows: P = F(P/F, i, n) P = A(P/A, i, n)

Q: The Prescott Welding Company needs to acquire a new lift truck for transporting its final product to…

A: The cost of leasing refers to the expenses incurred when renting or leasing an asset for a specified…

Q: A warehouse is initially rented for Php. 100,000.00 a year. If the 10-year lease contract indicates…

A: The initial rent is Php 100,000 The period is 10 years. The rate of interest is 8% compounded…

Q: You must evaluate a proposal to buy a new milling machine. The base price is $105,000, and shipping…

A: Base price$105,000Shipping & installation cost$9,000Salvage value$68,250Increase in net…

Q: A company is considering several mutually exclusive ways that can meet a requirement for a filling…

A: Installation Costs = 8,000 Revenues = 25,000 per year   Alternative 1 Initial Cost = 75,000 N = 6…

Q: The Acme Brick Company is considering adding five lift trucks to its fleet. Both purchasing and…

A: The current cost of the purchase of the purchasing of assets is as follows: Resultant table:

Q: A firm can purchase a centrifugal separator​ (5-year MACRS​ property) for​$17,000. The estimated…

A: Given Data: Investment ($) 17000 Useful life 6 Salvage value($) 3000 Tax rate 23% MARR 12%…

Q: Anchor Ltd paid $15,000 last quarter for a feasibility study regarding the demand for motor-boat…

A: Initial cash flow: Please note that we have added opportunity cost as company is foregoing cash…

Q: The company "Delicia S.A." is considering the possibility of acquiring a new chocolate processing…

A: Present value of investment is the summation of discounted expected future values. It shows the…

Q: K&G Chemical Company has just received a special subcontracting job from one of its clients.…

A: Computation of after tax Cash flows in actual dollars and ROR on this investment on real basis is…

Q: There are two alternatives for the place where a factory will be constructed. For the 1st…

A: While evaluating capital projects, least common multiple approach is used if the useful life of…

Q: Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two…

A: Present Value is the current price of future value which will be received in near future at some…

Q: Business Monkey is evaluating a 3-year project that would involve buying a new piece of equipment…

A: NPV (Net Present Value) assesses investment profitability by calculating the present value of future…

Q: Kiddy Toy Corporation needs to acquire the use of a machine to be used in its manufacturing process.…

A: While deciding whether to buy or lease a particular equipment , the investor is required to compute…

Q: Barbara Thompson is considering the purchase of a piece of business rental property containing…

A: Given information: Initial investment on a property is $350,000. An annual receipt as rent is…

Q: An equipment that currently costs $750,000 is needed for construction at the project  site for 5…

A: Considering cash flow from Lease and Purchase of equipment Assumption of equipment being sold…

Q: You are evaluating a potential purchase of several light - duty trucks. The initial cost of the…

A: Initial cost = $194,000Salvage value at the end of 5 years = $29,100Revenue = $155,000Annual…

Q: Sheridan Shovel Corporation has decided to bid for a contract to supply shovels to the Honduran…

A: The point at which NPV is zero and present value of cash flow is equal to initial investment of…

Q: Martin Enterprises needs someone to supply it with 117,000 cartons of machine screws per year to…

A: NPV is most used capital budgeting method based time value of money and is the financial break even…

Q: Your client, Albert Almora Leasing Company, is preparing a contract to lease a machine to Souvenirs…

A: Present Value: The value of today’s amount to be paid or received in the future at a compound…

Q: A construction company is evaluating two options for an elevator, each of which has a useful life in…

A: Here,Life of both Option is 10 yearsCost of Option-1 is $45,000Cost of Option-2 is $54,000Annual…