Wrangler Western has some of its jeans stone-washed under a contract with an independent contractor, Almos Garment Corp. If Almos' operating cost is $38,000 per year for years 1 and 2 and then it increases by 5% per year through year 10, what is the year-zero present worth of the machine operating cost at an interest rate of 14% per year? The present worth of the machine operating cost is determined to be $

Q: A company is considering buying a piece of machinery that costs $20,000 and has a salvage value of…

A: Internal rate of return Or IRR is the rate or percentage that is minimum required to cover the…

Q: Fruit Packers uses packing machines to prepare its products for shipping. Each machine  costs…

A: Equivalent annual cost (EAC) Equivalent annual cost (EAC) is an annual cost to own, maintain and…

Q: Trek Industries purchases new machinery to replace some of its old machinery. The new machinery…

A: Simple rate of return is calculated by dividing the Net operating income by the initial investment.…

Q: 不 comparing two options: a. Purchase the machine it is cur b. Purchase a new, more advanc costs by…

A: Rent of  a machine = $53,000a. Purchase price of current renting machine = $155,000, Maintenance…

Q: Thornton Painting Company is considering whether to purchase a new spray paint machine that costs…

A: Unadjusted rate of return is computed by dividing the increase average income with the initial cost…

Q: Question: You are considering the purchase of one of two machines used in your manufacturing plant.…

A: To determine which machine to choose, we need to calculate the Equivalent Annual Cost (EAC) for each…

Q: Modern Artifacts can produce keepsakes that will be sold for $70 each. Non-depreciated fixed costs…

A:

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

A: Cost of one machine=$142000Operating cost=$7000Economic life=5yearsDiscount rate=r=11%Find out…

Q: Assuming a discount rate of 7%, what is the net present value of buying the new machine?

A: NPV = $36,465 Working - Calculation of NPV Year Cashflows Present value factor(7%) Present value…

Q: 1. A machine costs $250,000 to purchase and will provide $60,000 a year in benefits. The company…

A: Net present worth is the difference between the present value of the cash inflows and cash outflows.…

Q: Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a…

A: KEEP OR REPLACE DECISIONIf there is increase in income by replacing, then the old machine should be…

Q: Kris Kringle Corp. needs to purchase a new delivery vehicle. The Sleigh 9000 model's purchase price…

A: The equivalent annual cost is the capital budgeting tool that can be used by the evaluator to…

Q: A company is thinking about buying new tools. The tools has an estimated fixing life of five years.…

A: Present value of Cash Inflow :— Present Value of Cash Inflow provides the Present Value of Cash…

Q: A company sells Gizmos to consumers at a price of $90 per unit. The costs to produce Gizmos is $38…

A: Operating Cashflow = PAT +Depreciation

Q: An automobile manufacturer is consid will save $7,500,000 per year in manua salvage value at the end…

A: IRR is internal rate of return is the discount rate at which present value of savings from equipment…

Q: Assume a machine costs $250,000 and lasts five years before it is replaced. The operating cost is…

A: Present value annuity factor is calculated as follows:-PVAF = wherePVAF = present value annuity…

Q: determine the total equivalent cost in present worth at an interest rate of 10%.

A: Total Equivalent Cost = Initial Payment + Present Value of Future Payments Present Value of Future…

Q: A certain factory building has an old lighting system. To light this building costs, on average,…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: The ABC Corporation is considering introducing a new product, which will require buying new…

A: Calculation of break even sale in units are as follows, Break even point where revenue  equal to…

Q: Given the information below for Seger Corporation, compute the expected share price at the end of…

A: EPS (earning per share) EPS is a measure of a company's profitability that shows how much money it…

Q: When Option B is compared with Option C,

A: Particulars option a option b option c parts required(parts) 25000 25000 25000 outside…

Q: A factory asset has a first cost of $100,000, annual costs of $15,000 the first year and increasing…

A: Given,  Initial cost =$100,000 Annual Costs = $15,000 increasing by 7.5%

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 company plans to spend $ 156244 to install a new machine. Annual maintenance cost is $ 13178.…

A: Initial Cost = 156244 Annual Maintenance Cost = 13178 Annual Income = 34918 Increase in Annual…

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: Acme Inc. has invested $50,000 in a new assembly line. Products produced by the new assembly line…

A: The MARR is the minimum accepted rate of return from an investment. Given in the question: Cost of…

Q: The manufacture of equipment costs $73,000 per year. An engineer finds that by spending $16,000 now…

A: Costs per year= 73000 Initial Cost = 16000 Updated costs per year: Year Cash Outflow 1 -58000…

Q: A company is considering the purchase of a new machine for $87,000. Management predicts that the…

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

Q: An industrial engineer has estimated that a processing machine will need repairs in years two…

A: Equivalent Uniform Annual Cost refers to the cost incurred over the period of project which when…

Q: Modern Artifacts can produce keepsakes that will be sold for $76 each. Non-depreciated fixed costs…

A: Given, Initial investment $2940 Fixed cost $940 per year Sales price per unit $76 each

Q: Consider a machine that costs $1000 to purchase. The machine creates an annual operating expense of…

A: Correct answer is option (d) 9 years.

Q: A company is considering the purchase of a new machine for $54,000. Management predicts that the…

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

Q: Assume interest is paid in full at the end of each year. a. How much would Sauer Food Company save…

A: There is interest to be paid on the loan that depends on the period of loan and interest rate on the…

Q: Your company is purchasing a new machine to make toys. The machine costs $1,866,000 today and will…

A: NPV is present value of inflow less present value of outflows. PV of outflows include the initial…

Q: rporation is considering introducing a new product, which will require buying new equipment for a…

A: Answer : Sales require (in unit) = (Fixed cost + target profit)/(Selling price per unit - Variable…

Q: Consider a machine purchased one year ago for $18,000. The machine is being depreciated $3,000 per…

A: Given:- machine purchased one year ago = $18,000. machine is being depreciated = $3,000 per year .…

Q: a company is considering the purchase of a new machine for 480,000. Management predicts that the…

A: Calculation of Annual operating cash flows :- Sales                                      180,000…

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

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

Q: Inc. uses fine-tuned equipment to produce electronic products. Each one of its machines costs…

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