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 purchaseprice 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 semiannuallyOa IRR-602% semiannualOh IRR-3% semiannualORR-12% semiannualOd IRR-6.23% semiannual

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Description: 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 purchaseprice is $44,000 and there is a salv

IRR is the internal rate of return at which present value of cash flow from the project are equal to…

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A company purchase a piece of manufacturing equipment for an additional income price is $44,000 and there is a salvage value of $4,500 e prospective OFR-602% semiannual OPR-3% semannual OPR-12% semanal ORR-623% semanual The expected income is $4,500 per semester wiele is 9 years Expenses are estimated to be $900 return (R) of th manually

A company purchase a piece of manufacturing equipment for an additional income price is $44,000 and there is a salvage value of $4,500 e prospective OFR-602% semiannual OPR-3% semannual OPR-12% semanal ORR-623% semanual The expected income is $4,500 per semester wiele is 9 years Expenses are estimated to be $900 return (R) of th manually

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 13EB: Conestoga Plumbing plans to invest in a new pump that is anticipated to provide annual savings for...

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A company purchase a piece of manufacturing equipment for an additional income. The expected income is $4,500 per semester. Its useful life 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 (IRR) of this investment? The IRR is compounded semiannually. O a. IRR = 3% semiannual O b. IRR = 12% semiannual O c. IRR = 8.02% semiannual O d. IRR = 6% semiannual
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 firm can purchase a centrifugal separator (5-year MACRS property) for $22,000. The estimated salvage value is $4,000 after a useful life of six years. Operating and maintenance (O&M) costs for the first year are expected to be $2,200. These O&M costs are projected to increase by $1,000 per year each year thereafter. The income tax rate is 24% and the MARR is 11% after taxes. What must the uniform annual benefits be for the purchase of the centrifugal separator to be economical on an after-tax basis? CAN YOU DO THIS PROBLEM BY HAND? AND NOT USING EXCEL I WOULD REALLY APPRECIATE IT!!!!
Note: Give me solution in Excel otherwise leave it. Thank you What is the payback period at an interest rate of 10% per year for an asset with initial cost of $ 16,000 ; salvage value of $ 18,000 whenever it is sold and annual revenue of $ 2,000 per year?
A firm is trying to decide between two equipment for a production activity. The following information is available. Equip 1 Equip 2 Initial investment $25,000 $17,000 7 years 7 years $0 Useful life Salvage value Operating cost per hour $0 $4.30 $5.00 At a MARR of 8% 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 = 8% per year. The breakeven number of operating hours per year is O A. 1,866 O B. 2,195 O C. 1,756
A firm can purchase a centrifugal separator (5-year MACRS property) for$17,000.The estimated salvage value is$3,000after a useful life of six years. Operating and maintenance (O&M) costs for the first year are expected to be$1,700.These O&M costs are projected to increase by$1,500per year each year thereafter. The income tax rate is23%and the MARR is12% after taxes. What must the uniform annual benefits be for the purchase of the centrifugal separator to be economical on an after-tax basis?
Determine the FW of the following engineering project when the MARR is 14% per year. Is the project acceptable? Proposal A $10.000 4 years - $1,000 Investment cost Expected life Market (salvage) value Annual receipts $9,000 Annual expenses $4,500 A negative market value means that there is a net cost to dispose of an asset A Click the icon to view the interest and annuity table for discrete compounding when the MARR is 14% per vear The FW of the following engineering project is S. (Round to the nearest dollar.) According to the FW Decision Rule the project acceptable. - X More Info is is not Discrete Compounding; i-14% Single Payment Compound Amount Factor Compound Amount Factor Uniform Series Sinking Capital Recovery Factor To Find A Given P AIP Present Worth Factor Present Worth Factor Fund Factor To Find F Given P FIP To Find F Given A To Find P Given F PIF 0.8772 0.7695 0.6750 0.5921 To Find A To Find P Given A Given F AIF FIA PIA 1.1400 1.2996 1.4815 1.6890 1.0000 0.8772 1.6467…