is trying to decide between two equipment for a production activity. The following information is available. Equip 1 $25,000 7 years Equip 2 $17,000 7 years Initial investment Useful life Salvage value Operating cost per hour SO $4.30 $5.00 ARR of 8% per year, determine the breakeven number of operating hours per year. dick the icon to view the interest and annuity table for discrete compounding when i = 8% per year. ... eakeven number of operating hours per year is 1,866 2,195 1756
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- Falkland, Inc., is considering the purchase of a patent that has a cost of $50,000 and an estimated revenue producing life of 4 years. Falkland has a cost of capital of 8%. The patent is expected to generate the following amounts of annual income and cash flows: A. What is the NPV of the investment? B. What happens if the required rate of return increases?Mason, Inc., is considering the purchase of a patent that has a cost of $85000 and an estimated revenue producing lite of 4 years. Mason has a required rate of return that is 12% and a cost of capital of 11%. The patent is expected to generate the following amounts of annual income and cash flows: A. What is the NPV of the investment? B. What happens if the required rate of return increases?Compare the following alternatives based on the rate of return analysis assuming that the MAAR is 15% per year. Project A Project B Initial Cost $60.000 $90.000 Annual cost of operation 15.000 8.000 Annual cost of reparation 5.000 2.000 Annual increase of the repair 1.000 1.500 Salvage value 8.000 12.000 Life, years 15 15
- A firm is trying to decide between two equipment for a production activity. The following information is available. Equip 1 $31,000 4 years SO Equip 2 $22.000 Initial investment Useful life 4 years So Salvage value Operating cost per hour $4.40 $5.00 At a MARR of 4% per year, determine the breakeven number of operating hours per year. Click the icon to view the interest and annuity table for discrete compounding when i= 4% per year. ..... The breakeven number of operating hours per year is O A. 3,512 More info О В. 5,372 ОС. 4,958 Discrete Compounding; i= 4% O D. 4,132 Single Payment Compound Amount Uniform Series Compound Sinking Capital Recovery Factor Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find P To Find A To Find A Given P To Find F To Find F To Find P Given A PIA Given P Given F Given A Given F F/P P/F FIA A/F A/P 0.9615 0.9615 1.8861 1 1.0400 1.0000 1.0000 1.0400 2 1.0816 0.9246 2.0400 0.4902 0.5302 1.1249 0.8890 3.1216 2.7751 0.3203 0.3603…a)$1000 is invested in an account for six months. The interest rate is 10 % per annum. Calculate the value of the account after six month using simple interest method. b) if the initial investment is 250000 Cash flow yr.1 $20000 yr2 $130000 yr3 $240000 yr 4 $40000 yr5 $60000 Find the IRR for the project Only typing answer Please explain step by step without table and graph thankyouFrom the given values below, which machine should be selected using (a) Present worth Method and (b) Future worth Method if interest rate is 10% per year? Machine Initial Cost (Php) Annual Operating Cost A В 146,000 15,000 220,000 10,000 75,000 25,000 Annual Revenue 80,000 10,000 Salvage Value Useful Life (years) 6
- Calculate the time necessary to achieve an investment goal. Give your answer to the nearest day. Use a 365-day year. (First enter the total number of full years, then give the remaining days.) $1,000 at 8% simple interest; deposit $650 _____years, ________daysThe data associated with operating and maintaining an asset are shown below. The company manager has already decided to keep the machine for 1 more year (i.e., until the end of year 1), but you have been asked to determine the cost of keeping it 1 more year after that. At an interest rate of 10% per year, estimate the AW of keeping the machine from year 1 to year 2. Operating Cost, $ per Year Market Value, $ 30,000 25,000 14,000 10,000 Year 0 1 2 3 -15,000 -15,000 -15,000The two machines shown are being considered for a chip manufacturing operation. Assume the MARR is a real return of 11% per year and that the inflation rate is 6.1% per year. Мachine First Cost, $ M&O, $ per year Salvage Value, $ Life, years A В -148,000 -70,000 40,000 5 -1,060,000 -5.000 200,000 00 Problem 14.056.a: Compare two alternatives based on their AW values without inflation consideration Which machine should be selected on the basis of an annual worth analysis if the estimates are in constant-value dollars? What is the annual worth of the selected alternative? Select machine A The annual worth of the alternative is $ -121600
- Calculate the time necessary to achieve an investment goal. Use 365 day year. $1000 @ 9% simple interest. Deposit $650 How many year and how many daysSuppose that annual income from a rental property is expected to start at $1,250 per year and decrease at a uniform amount of $40 each year after the first year for the 13-year expected life of the property. The investment cost is $7,000, and i is 7% per year. Is this a good investment? Assume that the investment occurs at time zero (now) and that the annual income is first received at EOY one. Click the icon to view the interest and annuity table for discrete compounding when i= 7% per year. The present equivalent of the rental income equals S (Round to the nearest dollar.)A company purchase a piece of manufacturing equipment for an additional income. The expected income is $4,500 per semester. Its useful ife is 9 years. Expenses are estimated to be $500 semiannually if the purchase price is $44,000 and there is a salvage value of $4,500, what is the prospective rate of return (RR) of this investment? The MARR is 10% compounded semiannually Oa IRR-602% semiannual Oh IRR-3% semiannual ORR-12% semiannual Od IRR-6.23% semiannual