(a) How long would it take to recover an investment of $245,000 in enhanced CNC controls that include axis control to eight axes on the milling model, if the associated income is $92,000 per year, expense is $38,000 per year, and the salvage value is estimated to be 15% of the first cost? Use a MARR of 15% per year. (b) Also, write the spreadsheet function that determines np.

A small company that manufactures automatic blowdown control valves (for applications where boilers are operated unsupervised for 24 to 36 hours) has fixed cost of #166128 per year and variable cost of P613 per valve. If the company expects to sell 15706 valves per year, then the selling price in order for the company to break even is Round your answer to 2 decimal places.

A biofuel subsidiary of Petrofac, Inc. is planning to borrow $12 million to acquire a small technology-based company. The rate of interest on a 5-year loan is highly variable; it could be as low as 7% or as high as 15%, but it is expected to be 10% per year. The company will only move forward with the acquisition offer if the AW is below $6 million. The M&O cost is fixed at $3.1 million per year. The anticipated sales price of the company could be $2 million if the interest rate is 7%, or as much as $2.5 million if the rate is 15%, but will most likely be about $2.45 million at a rate of 10% per year. Is the decision to move forward with the acquisition sensitive to the loan's interest rate and salvage value estimates? The annual worth with a rate of 7% is $ The annual worth with a rate of 10% is $ The annual worth with a rate of 15 % is $

A project has a first cost of $200,000 with annual costs of $50,000 and revenue of $90,000 per year.What is the payback period at (a) no-return, and (b) i = 7% per year?

You work for Midstates Solar Power. A manager asked you to analyze the following two machines. Machine Semi has a first cost of $50,000 and an operating cost of $15,000 in year 1, increasing by $1500 every two years through year 6, after which time it will have a salvage value of $10,000. Machine Auto has a first cost of $50,000 and an operating cost of $20,000 in year 1, increasing by 5% per year through year 6, after which time it will have a salvage value of $15,000. Utilize an interest rate of 12% per year to determine both estimates. a) Which machine will have the lower capital recovery cost? b) Which machine will have the lower equivalent annual total cost?

The property appraisal district for Marin County has just installed new software to track residential market values for property tax computations. The manager wants to know the total equivalent cost of all future costs incurred when the three county judges agreed to purchase the software system. If the new system will be used for the indefinite future, find the equivalent value (a) now and (b) for each year hereafter. The system has an installed cost of $150,000 and an additional cost of $50.000 after 10 years. The annual software maintenance contract cost is $5000 for the first 4 years and $8000 thereafter. In addition, there is expected to be a recurring major upgrade cost of $15,000 every 13 years. Assume that = 5% per year for county funds.