Your firm is thinking about investing $200,000 in the overhaul of a manufacturing cell in a lean environment. Revenues are expected to be $39,000 in year one and then increasing by $13,000 more each year thereafter Relevant expenses will be $10.000 in vearone and will increase by $5,000 per year until the end of the cell's nine-year life. Salvage recovery at the end of year nine is estimated to be $9.000. What is the annual equivalent worth of the manufacturing cell if the MARR is 8% per year?A Click the icon to view the interest and annulty table for discrete compounding when the MARR is 8% per year.The annual equivalent worth of the manufacturing cell is S (Round to the nearest dollar)Enter your anower in the answer box tuingDiscreto Compounding; i-8%Uniform SeriesUniform GradientContonAnsSinkingFindGradientUniformPresontMorh FectorlO Find PGiyn ACapitalRecoveryFactorNo Find AGradientPresentWorth FactorSeriesFactorTo FidTGivetFactorTo Find AGiven GA/GTo Fiad ATo Find PGiven GN.PIG11.08000 9259085730.79380.73500.68060 63020.5835100002 CE000 92591.78331.00000 48080 30800/2219017050 13630.1121O 0940108000 56080.38800.00000.00001.16640.85730.480831.25973 24642.57712.44500.94874.1.36054.50615 3666733698.922810 636612.487614. 48663.31213.992746229520645.74666 24696.71010/30194.65017.372410.52331.40400 25050.21631.46931.84651.58692.27631.7138019210.17400.160114.02422.69378.1.85090.54030.50020.463217.80613.09856.1.999021.80813.4910102.1589.06900.149025.97683.8713PrintDoneDOx.

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

Your fim is thinking about investing S200.000 in the overhaul of a manufacturing cell in a lean environment. Revenues are expected to be $39,000 in year one and then increasing by $13,000 more each year thereafter Relevant epenses wil be $10.000 in year one and will increase by $5.000 per year until the end of the cell's nine-year life. Salvage recovery at the end of year nine is estimated to be $9,000 What is the annual equivalent worth of the manufacturing cell if the MARR is 8% per year? Click the icon to view the interest and annulty table for discrete compounding when the MARR is 8% per year. The annual equivalent worth of the manufacturing cell is S (Round to the nearest dollar)

Your fim is thinking about investing S200.000 in the overhaul of a manufacturing cell in a lean environment. Revenues are expected to be $39,000 in year one and then increasing by $13,000 more each year thereafter Relevant epenses wil be $10.000 in year one and will increase by $5.000 per year until the end of the cell's nine-year life. Salvage recovery at the end of year nine is estimated to be $9,000 What is the annual equivalent worth of the manufacturing cell if the MARR is 8% per year? Click the icon to view the interest and annulty table for discrete compounding when the MARR is 8% per year. The annual equivalent worth of the manufacturing cell is S (Round to the nearest dollar)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

A new project will cost $40,000 to fund today, and an additional $40,000 next year. The device built will generate revenues of $17,000 starting in year 2 which increases by 4% each year until the device is sold at the end of year 12. The device’s salvage value is $10,000. $2,000 of maintenance is required every year. What is the NPV of building this device, if the interest to borrow the funds is 15%? (Round to nearest dollar)
A truck can be purchased for $55,000. Annual O&M costs are expected to increase by $1,800 every year, with a 1st-year O&M cost of $4,000. (MARR = 26% and the planning horizon is 10 years) • The compressor salvage value for a given period t is calculated based on the following equation: Salvage value (t) = $30,000– $3,000 * t a) Find the Optimum Replacement Interval for this Equipment b) Find the Optimum Replacement Interval for this Equipment if the O&M costs are decreased to $1,700/yr. What is your conclusion? c) Find the Optimum Replacement Interval for this Equipment if the initial cost is reduced to $52,000. What is your conclusion? (independent of part b)
You have been given the following information on a project: It has a 3-year lifetime The initial investment in the project will be $28 million, and the investment will be depreciated straight-line, down to a salvage value of $6 million at the end of the fourth year. The revenues are expected to be $20 million next year and to grow 6% a year after that for the remaining two years. The cost of goods sold, excluding depreciation, is expected to be 53% of revenues. The tax rate is 0.36. Estimate the after-tax return on capital, by year, to find the average for the project. (Round answer to four decimal places.)
A "standard" model of a dozer costs $20,000 and has an annual operating expense of $450. The dozer will be replaced in 6 years when the salvage value is expected to be $2,000. A "super" model can be purchased for $25,000, but will have a salvage value of $7,000 when retired in 6 years. Its operating expenses are also $450 a year. The purchaser's other investment opportunities are 5%. Compare these alternatives by using the annual equivalent method.
A company is considering an investment in a machine. The machine will cost $250,000 and will have a seven year useful economic life. It has a salvage value of $50,000. The expected annual operating costs for the machine would be $30,000 (for each year of the seven years). Assume that the company's desired return on its investment (MARR) is 11%, find the annual equivalent cost (AEC)?
Please show all your work
Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $85,000 per year. A clever industrial engineer found that by spending $19,000 now to reconfigure the production line and reprogram two of the robotic arms, the cost will go down to $52,000 next year and $58,000 in years 2 through 5. Using an interest rate of 15% per year, determine the present worth of the savings due to the reconfiguration. The present worth of the savings is determined to be $
A marketing company intends to 0 distribute a new product. It is expected to produce net returns of $17,000 per year for the first four yoars and $13,000 per year for the following throe yoars Tha faciltios roquirodto distribute the product will cost $70,000 with a disposal value of $9,000 after seven years. The facilities will require a major facelift costing $10,000 each after three years and after five years. If the companyrequires a return on investment of 10%, should the company distribute the new product?
An investment of $20,000 for a new condenser is being considered. Estimated salvage value of the condenser is $5,000 at the end of an estimated life of 6 years. Annual income each year for the 6 years is $8,500. Annual operating expenses are $2,300. Assume money is worth 15% compounded annually. Determine the external rate of return and whether or not the condenser should be purchased.

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS