× Your answer is incorrect. A university's college of engineering would like to determine how much it will cost to keep its computing equipment current. In today's dollars, the college estimates that it will cost $190,000 to replace old computing equipment. Due to decreasing prices on computers, it estimates that this cost will decrease each of the following years by 7%. What would the present worth of computing updates for years 1-5 be, assuming a required 15% real return on its investments? Click here to access the TVM Factor Table calculator. A Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is + $10. 564921.75

× Your answer is incorrect. A university's college of engineering would like to determine how much it will cost to keep its computing equipment current. In today's dollars, the college estimates that it will cost $190,000 to replace old computing equipment. Due to decreasing prices on computers, it estimates that this cost will decrease each of the following years by 7%. What would the present worth of computing updates for years 1-5 be, assuming a required 15% real return on its investments? Click here to access the TVM Factor Table calculator. A Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is + $10. 564921.75

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 15E: Gina Ripley, president of Dearing Company, is considering the purchase of a computer-aided...

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A university's college of engineering would like to determine how much it will cost to keep its computing equipment current. In today's dollars, the college estimates that it will cost $100,000 to replace old computing equipment. Due to decreasing prices on computers, it estimates that this cost will decrease each of the following years by 2%. What would the present worth of computing updates for years 1-5 be, assuming a required 10% real return on its investments?
A university's college of engineering would like to determine how much it will cost to keep its computing equipment current. In today's dollars, the college estimates that it will cost $100,000 to replace old computing equipment. Due to decreasing prices on computers, it estimates that this cost will decrease each of the following years by 2%. What would the present worth of computing updates for years 1-5 be, assuming a required 10% real return on its investments? Click here to access the TVM Factor Table calculator. $ Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is ± $10. eTextbook and Media Hint Save for Later Attempts: 0 of 1 used Submit Answer
A university's college of engineering would like to determine how much it will cost to keep its computing equipment current. In today's dollars, the college estimates that it will cost $160,000 to replace old computing equipment. Due to decreasing prices on computers, it estimates that this cost will decrease each of the following years by 4%. What would the present worth of computing updates for years 1-5 be, assuming a required 11% real return on its investments? Click here to access the TVM Factor Table calculator. $ Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is ± $10.
How would this be solved in excel?
What is the simple payback on this improvement? (Ignore Discount Rate) A silicon wafer manufacturing process has a potential improvement but the total cost of the system improvement over the expected remaining service life of 5 years is unknown. The initial cost of the improvement is $7,000 and the annual maintenance cost of the improvement is $650 with a discount rate of 8%. 1. What is the total cost of the machine improvement at the present time? 2. The process improvement is expected to generate a cost savings of about $3000 per year. What is the total cost savings of the improvement at the present time?
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A university spent $1.3 million to install solar panels atop a parking garage. These panels will have a capacity of 400 kilowatts (kW) and have a life expectancy of 20 years. Suppose that the discount rate is 20%, that electricity can be purchased at $0.30 per kilowatt-hour (kWh), and that the marginal cost of electricity production using the solar panels is zero. Hint: It may be easier to think of the present value of operating the solar panels for 1 hour per year first. Approximately how many hours per year will the solar panels need to operate to enable this project to break even? a. 2,224.69 b. 1,112.35 c. 2,892.10 d. 2,447.16 If the solar panels can operate only for 2,002 hours a year at maximum, the project __________ break even. Continue to assume that the solar panels can operate only for 2,002 hours a year at maximum. In order for the project to be worthwhile (i.e., at least break even), the university would need a grant of…
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