4. You will need to replace your quadcopter manufacturing system in seven years. You estimate the replacement cost at that time will be $950,000. If you can sell quadcopters for $550 each and they cost $250 each to manufacture and sell, how many quadcopters do you need to sell each year to pay for the replacement system? Your MARR is 5%. Select one:

4. You will need to replace your quadcopter manufacturing system in seven years. You estimate the replacement cost at that time will be $950,000. If you can sell quadcopters for $550 each and they cost $250 each to manufacture and sell, how many quadcopters do you need to sell each year to pay for the replacement system? Your MARR is 5%. Select one:

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

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Similar questions

You have an idea to sell handmade porcelain plates. The only investment needed is a furnace (oven) that you can buy for $40,000. The furnace assumed to last for 8 years and it will be fully depreciated by the straight-line method over its economic life. Other fixed costs amount to $1,000 per year. Taxes are 30 percent. Your discount rate is 15 percent. a. What is the accounting break-even point if each plate costs $4 to make and you can sell plates for $12 apiece? b. Calculate the financial break-even point
4. A consulting engineering firm can buy a small computer for $30,000. The life and scrap value of this computer are estimated at 6 years and $4,000, respectively.Operating costs are $50 per day and maintenance costs $ 3,000 per year. Alternatively, you can rent enough computer time for an average of $130 a day. If the interest rate is 12%, how many working days per year will it be justified to buy a computer?
You are investigating the cost of project to renovate the kitchens in a large apartment building, the payments for this work will be $32,500 up front and $13500 a month for 8 months, followed by a completion payment of $31500. To start this project you will need to purchase equipment for $70,000 at the beginning of the project and you expect monthly materials and operating costs to be about $7,500. The Rate of Return is 12%. What is the total PV of the 8 monthly payments of $13500 per month. You should assume that the payments are made at the end months 1 through 8. (So this is a ordinary simple annuity). Round your answer to the nearest penny. Your Answer: Answer
An apartment will generate $8,000 a year for 5 years, after which you expect to sell the property for $100,000. What is the maximum you should pay for the property if your cost of money is 10% ?
Use the following information for the next TWO (2) questions: A farm must decide whether or not to purchase a new tractor. The tractor will reduce costs by P2, 000 in the first year, P2, 500 in the second, and P3, 000 in the third and final year of usefulness. The tractor costs P9, 000 today, wihile the above cost savings will be realized at the end of each year. If the interest rate is 7 percent. QUESTION NO. 3 What is the present value of cash inflaw from purchasing the tractor? Your answer QUESTION NO.4 What is the net present volue of purchasing the tractor, accept or reject? Your ariswer
You are considering whether or not to purchase another new air conditioner refrigerant recovery machine that costs RM13600.00 per piece. He knows that his total earnings for the past three years (sales for air conditioning service) have averaged RM33600.00 per year for 5 working days a week and have remained steady. You are sure that you will be able to sell another 200 air conditioning service per year for RM80.00 labor a piece as a result of having this new capability. You decided: i. Calculate and explain what would your shop ROI be over three years by taking this opportunity based on the information. ii. Calculate the ROI percentage (%) for the new machine's sales.
Our new computer system cost us $121,600. We will outgrow it in five years. When we sell it, we will probably get only 10% of the purchase price. CCA on the computer will be calculated at a 30% rate (Class 10). Calculate the CCA and UCC values for five years. (Round your intermediate calculations and final answers to 2 decimal places. Omit $ sign in your response.) Year 1 2 3 4 5 CCA $ Ending UCC $ $ $ What will be the after-tax proceeds from the sale assuming the asset pool remains open? Assume a 40% tax rate. (Omit $ sign in your response.) After-tax proceeds $
A firm can lease a truck for 4 years at a cost of $35,000 annually. It can instead buy a truck at a cost of $85,000, with annual maintenance expenses of $15,000. The truck will be sold at the end of 4 years for $25,000. a. What is the equivalent annual cost of buying and maintaining the truck if the discount rate is 12%? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Equivalent annual cost b. Which is the better option? Lease O Buy
its already answered in this site just copy paste it and send me here
You want to buy a house in 4 years. The type of house you want to purchase currently costs $ 160,000 but housing costs are rising 4% per year. The down payment you will need is 10% of the cost of the home (which will be the cost four years from now). You have $ 5,000 now (and only now, not an extra $5,000 each year) that you will (today) put into a savings account paying 2% APR monthly and you will use this to HELP cover the down payment. (You must come up with the rest of the down payment somehow. You can only borrow 90% of the final cost of the house.) You expect a 7% APR compounded monthly, with monthly payments for a 30 year loan. The amount the house would be expected to cost in 4 years is: Question 6 options: $188,000 $160,000 $187,177 $179,978 $200,000
Suppose you were considering purchasing a $5000 machine today that would generate additional net profit of $2000 booked at the end of each year. Assuming you need a 15 percent return to justify the investment, would the investment be worth doing if you had only three years of payouts? Would your answer change if you had four years of $2000 payouts? Why or why not?
A firm can lease a truck for 5 years at a cost of $49,000 annually. It can instead buy a truck at a cost of $99,000, with annual maintenance expenses of $29,000. The truck will be sold at the end of 5 years for $39,000. a. What is the equivalent annual cost of buying and maintaining the truck if the discount rate is 12%? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Answer is complete but not entirely correct. Equivalent annual cost S 35,501.30x b. Which is the better option? Buy Lease

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