Problem 8 A colleague has completed the following set of estimated costs and salvage values for a proposed machine with an initial cost of $15,000. However, he doesn't know how to find the most economic useful life. To demonstrate, you compute the equivalent uniform annual cost (EUAC) for year eight (EUAC) using a MARR of 15% Useful Estimated Estimated Life End-of- Salvage (years) Year MX Value 1 $0 $10,000 2 $0 $9000 3 $300 $8000 4 $300 $7000 5 $800 $6000 6 $1300 $5000 7 $1800 $4000 8 $2300 $3000 9 $2800 $2000 10 $3300 $1000

Calculate the present worth of all costs for a newly acquired machine with an initial cost of $30,000, no trade-in value, a life of 12 years, and an annual operating cost of $16,000 for the first 5 years, increasing by 10% per year thereafter. Use an interest rate of 10% per year.   The present worth of all costs for a newly acquired machine is determined to be $ __________   plz answer correct asap help Dont answer by pen pepar

A company is setting up a project to buld housing Units in which the investment volume is estimated at ane million dollars to build (100 houses), the price of the house is (20,000) dollars, to be paid in equal installiments for a periad of (4 years), the annual Costs are estimated at (50) thousand dollars. Calculate the Simple rate of returm, the payoack period and the internal rate of retum for the project, bearing in mind that the lowest discount hiahest is (12'%). Will the project be accepted or rejected. rate is (8b) and the

Calculate the future worth (FW) at 10% of a project that will save $25K per year for 20 years. The first cost is $120K, and the salvage value is $20K. Compare this with the PW and the EAW. (Please show the process and solution ty.)

3. Evaluate the two machines below, using ROR analysis. Which machine should be selected, if MARR is 10%? Remember, the ROR equation should be set up to ensure equal service. Mach B -15,000 -25,000 -400 6,000 Mach A First cost ($) AOC ($) Salvage value (4) Life (yrs) -1,600 3,000 6

You are starting a new project. This project would last 4 years. The following is the input information that you have collected: Building cost (1.3% in the first year and then 2.6% every year) $12,000,000 Equipment cost (MACRS 5 years) $8,000,000 Net operating working capital requirement (% of Sales) 10% First year sales (in units) 20,000 Growth rate in units sold 0% Sales price per unit $3,000 Variable cost per unit $2,100 Fixed costs $8,000,000 Market value of building at the end of year 4 7,500,000 Market value of equipment at the end of year 4 2,000,000 Tax rate 40% WACC 12% Inflation growth in sales price per year 2% Inflation growth in VC per unit per year 2% Inflation growth in fixed costs per year 1% What is the NPV of this project? (In your calculations use zero decimal spaces/round to the whole numbers).

The data provided by a company for the year 2021 - 2022 to carry out Break Even Analysis. Provide the results, complete analysis and suggestions. The data is as follows: The fixed cost of the year is 80000.0 R.O The estimated sales are 400000.0 R.O Material Cost / unit 10.0 R.O Production cost / unit 1S 20.0 R.O Transportation & other Misc Cost / unit (Approx) 5.00 R.O Marketing and advertisement cost / unit 3 R.O Each unit is sold at price 50.0 R.O 1. Construct the B.E.P chart on a graph sheet and indicate, B.B.P, M.o.s. 2. Indicate B.E.P & M.o.S after the improvement measures has been taken (With different colours). 3. Determine the profit before and after the measures taken.

A start up business is considering two types of equipment - data are as follows: TYPE A TYPE B First Cost P200,000.00 P300,000.00 Annual operating cost 32,000.00 24,000.00 Annual labor cost 50,000.00 32,000.00 Insurance and property taxes 3% 3% Payroll taxes 4% 4% Estimated life 10 10 The minimum required rate of return is 15%. What is the exact rate of return? ANSWER: Blank 1 Blank 1 Add your answer

Graph on right, shows AW of costs versus number of service years of project X. Based on the graph, economic service life of the project is Larger costs Total AW of costs AW of AOC Capital recovery 3.5 10 Years О 3.5 years O 10 years O 1 year О З уears AW of costs, S/year

Fill in the missing values: QP TC TB Tprofit MC MB Mprofit ATC AFC AVC 16 500-50 ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ 16 132 16 16 156 16 186 0 5 6 7 8 16 9 16 272 10 16 332 16 224