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- You purchased a building 5 years ago for P 5M. Its annual maintenance expense has been P 250,000 per year. At the end of three years, you spent P 450,000 on roof repairs. At the end of 5 years (now), you sell the building for P 6M. During the period of ownership, you rented the building for P 500,000 per year paid at the beginning of each year. Use the AW AW, PW, FW and ERR method in your solution evaluate this investment when your MARR is 12% per year.On August 6, 2021, Nike purchased new cash registers for their stores for $105,000 total. They will realize a $9,700 profit on the first Friday of every month ( Hint: You will need a calendar) starting on 9/3/2021 for an entire year (ending on July 1, 2022). What is the rate of return of this project? (X.X%)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
- A start up business is considering two types of equipment - data are as follows: ΤΥΡE Α 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 I 4% 4% Estimated life 10 10 The minimum required rate of return is 15%. What is the exact rate of return? ANSWER: Blank 1ligthing first cost of investment is $120,000. annual mtnce expenses are expected to be $6600 for the first 22 years and $9000 for each year thereafter. N=infinety amt of time, interest,i=12% per year, what is the capatalized cost of this project? the annuity table for value N=22 as follows: F/P=12.1003 P/F=.0826 P/A=7.6446 I tried mutliple ways to show and I can't figure it out. the answer is $176,653. Any suggestions is greatly appreciated. Thanksa young engineer wishes to become a millionaire by the time he is 60 years old. He belives that by careful investment he can obtain a 15% rate of return. He plans to add a uniform sume of money to his investment program each year, beginning on his 20th birthday and continuing through his 59th birthday. How much money must the enigneer set aside in this project each year? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- A company is analyzing a 15-year project which requires an initial investment of $300 million.From the 1st year to the 10th year, this project requires an annual expense at the end of each year.The 1st-year expense will be $10 million, and the expense will decrease by 5% each year. From the6th year to the 15th year, the project will generate an arithmetically increasing annual revenue at theend of each year: $10 million at the end of the 6th year, $20 million at the end of the 7th year, . . .,and $100 million at the end of the last year. Assume that the annual interest rate is 3% compoundedannually a) Draw a cash-flow diagram for this project from the company’s perspective. b) Find the present value of this project c) The company considers a 10-year project which requires an initial investment of $200million, no other expenses, and a consistent annual revenue at the end of each year from the 1styear to the last year. If this project has the same value with the above project, what will…SHOW COMPLETE SOLUTIONS. SHOW CASHFLOW DIAGAM. DO NOT USE EXCEL. UNIFORM ARITHMETIC GRADIENT A parcel of land in a downtown area, suitable for parking lot, can be leased for a period of 10 years. Initial development costs for clearing, paving and constructing a small office shed on the lot is estimated to be P150,000. If the net annual revenue for the first year is P22,000 and increases by 10% per year thereafter until the tenth year, and the improvements revert to the owner of the land at the end of 10 years, what is the rate of return on the investment?Lim Bon Fing Y Hermanos Inc has offered for sale its two-storey building in thecommercial district of Cebu City. The building contains two stores on the ground floor anda number of offices on the second floor.A prospective buyer estimates that if he buys this property, he will hold it for about 10years. He estimates that the average receipts from the rental during this period to beP350,000.00 and the average expenses for all purpose in connection with its ownershipand operation (maintenance and repairs, janitorial services, insurance, etc.) to beP135,000.00. He believes that the property can be sold for a net of P2,000,000 at the endof the 10th year. If the rate of return on this type of investment is 7%, determine thecash price of this property for the buyer to recover his investment with a 7% return beforeincome taxes.ANSWER: P2,526,768.61
- Company B has a P5M loan for a new security system it just bought. The annual payment is P444,000 and the interest rate is 8% per year for 30 years. Your company decides that it can afford to pay P500,000 per year. After how many payments (years) will the loan be paid off? a. 18.78 yrs b. 15.67 yrs c. 20.44 yrs d. 25.76 yrsTwo lathes are being considered in the manufacture of certain machine parts. Data is given below, all cost in peso: LATHE A LATHE B First Cost 40,000 56,000 Salvage Value 5,000 7,000 Annual Maintenance 2,000 2,800 Operation, Cost/hour 4 3.5 Life, in years 10 12 Time per part (hours) 0.40 0.25 REQUIRED: Determine the number of machine parts/year that could be produced so that 2 lathes will be equally economical if the MARR is 18%. Use AWM If the number of parts is 10,000 units, which lathe will you recommend? Use ROR If the number of parts is 10,000 units, which lathe will you recommend? Use PWM If the number of parts is 10,000 units, which lathe will you recommend? Use EUACEconomics What savings would accrue if a heat pump with an EER of 16.0 are installed to replace the existing one with an EER of 11.0? The average Cooling Degree Days (CDD) for Lincoln is 1,154 and the inside temperature is 75° Fand the outside peak temperature is 95° F. The electric rate is $.11/kWh and the peak cooling load for the BCC is 98,000 Btu/Hr. O $442 O $933 O $1,375 O $2.986