$8000 will cost now for installing a printing machine, but it will save $2200/year for 5 years. The salvage value of printing machine is estimated as $1500. Calculate the present worth of printing machine while i=-10%
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$8000 will cost now for installing a printing machine, but it will save $2200/year for 5 years. The salvage value of printing machine is estimated as $1500. Calculate the present worth of printing machine while i=-10%
Net present worth applies to cash flows that happen at various times, takes into account the time value of money, and is based on the discount rate. Investors evaluate their investments alternatives through present worth.
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- $8000 will cost now for installing a printing machine, but it will save $2200/year for 5 years. The salvage value of printing machine is estimate as $1500. Calculate the present worth of printing machine while i=-10%. MUST draw the CFD or SHOW transactions at each point before you jump into main calculation.Automating a process will cost $8000 now, but it will save $2200 annually for 5 years. The machinery will have a salvage value of $1500. What is the present worth of the machinery if the interest rate is 10%?A machine will cost $30,000 to purchase. Annual operating and maintenance costs (O&M) will be $2000. The machine will save $10,000 per year in labor costs. The salvage value of the machine after 5 years will be $7000. Calculate the machine’s present worth for an interest rate of 10%.
- The cost of a new machine is $250,000) The machine has a 3-year life and no salvage value) If the cash flow each year is equal to 40% of the cost of the machine, calculate the payback period for the project:The initial cost of a new machine is $10,000. The annual operating cost is $1,000/yr for first 3 years, and then becomes $3,000/yr after that. The machine needs a major repair at the end of 5th year, which costs $5,000. The machine has 10 years useful life with salvage value of $4,000. Calculate EUAC for keeping the machine for 10 years. (i=10%/yr)A small machine has an initial cost of 20000, a salvage value of 2000 and a life of 10 years. If your cost of operation per year is 3500 and your revenues per year is 9000, what is the approximate rate of return (ROR) on the investment?
- 1. A remotely situated fuel cell has an installed cost of BD2,000 and will reduce the existing expense by BD350 per year for eight years. The company's MARR is 10% per year. a) What is the minimum salvage value after eight years that makes the fuel cell worth purchasing? b) What is the fuel cell's IRR if the salvage value is negligible?You manufacture car parts using equipment and direct labor. You are planning to buy a new machine for $1,000. The machine will generate net cash flows of $250 a year for 10 years. The salvage value after 10 years is zero. Compute ARR (accounting rate of return). O 50% O 15% 25% 30% O not enough information - need to know accounting income and accounting depreciationA laboratory test machine costs P 150, 000.00, lasts for 6 years and has a salvage value of P 30, 000.00. How much could an investor afford to pay for another machine of the same purpose, whose life is 10 years with a salvage value of P40,000.00, if money is worth 5%. Given: Required: Solution: refer to this textbook:
- A company is trying to decide whether to buy a machine for $ 80,000 which will saved $20000 a year for five years and which have a resale value of $10000 at the end of the years. What would be IRR of the investment projectA new machine will cost P17000 and will have an estimated salvage value of P11000 in five years. Special tools for the new machine will cost P5000 and will have a resale value of P2500 at the end of five years. Maintenance costs are estimated at P200 per yr. What will be the average annual cost of ownership during the next five years if interest is 6%?You are considering purchasing a new injection molding machine. This machinewill have an estimated service life of 10 years with a negligible salvage value.Its annual net operating cash flows are estimated to be $60,000. To expect a 15%rate of return on investment, what would be the maximum amount that should bespent on purchasing the injection molding machine?(a) $301,126 (b) $234,645(c) $600,000 (d) $126,450