A new shoe production line is being designed at a cost of $245,000 and operating costs areexpected to be $84,000 per year. Planned annual production is 2500 pairs and the price of a pair ofshoes is $110. The line's service life is 14 years, the depreciation rate is 25%. Use a 19% annual interestrate for the base case. Using the interval [-20%, -10%, +10%, +20%], perform a present worthsensitivity analysis using a sensitivity graph with respect to the following variables in terms of theirimpact on the Present worth.a) First Costb) Operative costc) Annual Productiond) Salvage Value

An asset costs $14300. What declining-balance depreciation rate would result in the scrap value of $5820 after 4 years? (Units of % required for response)

Item A is currently in use at a plant. The original cost of the piece of machinery was $2,000. Its maintenance cost is $500 this year, increasing each year by $30. Items A can be replaced by Item B which has a current cost of $3,500. Item B has no annual maintenance costs, but it is anticipated that the item purchase cost increases by $50 per year. Disregarding income taxes effects (such as depreciation), what is the predicted optimum time (after year 'X') to schedule a replacement of Item A with Item B. Use 8% as the 'interest rate', which really is the value of money to the company. a. 5 years b. 6 years c. 7 years d. 8 years

A publishing company delivered textbooks worth $48,000 to a college bookstore. The invoice is dated July 18, 2020 and has the following payment terms: 3.5/7, 3/30, n/45. What amount paid by the bookstore to the publisher will settle the invoice on: a. July 25, 2020 b. August 17, 2020 c. September 1, 2020

4. A 3-year-old manufacturing equipment, which has a present market value of $13,000, is being considered for early replacement. The estimated five-year market values and annual operating costs are shown below. The AW replacement values of year 1 and 2 have already been conducted, help the company determine the total AW3 replacement value (year 3 only) which will consider how long the asset should be retained, its ESL. The interest rate is 10% per year. Year j (1) 1 2 345 MV, (2) $9000 8000 6000 2000 0 AOC, (3) $-2500 -2700 -3000 -3500 -4500

We project unit sales for a new household-use laser-guided cockroach search and destroy system as follows: Unit Sales 100,500 112,500 135,500 141,500 94,500 Year 1 2 3 4 5 The new system will be priced to sell at $470 each. The cockroach eradicator project will require $2,100,000 in net working capital to start, and total net working capital will rise to 15% of the change in sales. The variable cost per unit is $340, and total fixed costs are $2,400,000 per year. The equipment necessary to begin production will cost a total of $22 million. This equipment is mostly industrial machinery and thus qualifies for CCA at a rate of 20%. In five years, this equipment will actually be worth about 20% of its cost. The relevant tax rate is 35%, and the required return is 16%. Based on these preliminary estimates, what is the NPV of the project? (Enter the answer in dollars. Do not round your intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV $…

The O&M cost of an equipment is given in the table below. Determine the EUAC of this equipment in year 6. Assume a MARR of 8%. + Year 1 2 3 4 5 6 O & M Cost $8,000 7,500 $7,000 $6,500 $6,000 $9,500 A) $8,188.45 B) $9,149.87 C) 7,407.20 D) $7,168.52

Kolby's Korndogs is looking at a new sausage system with an installed cost of $670,000. The asset qualifies for 100 percent bonus depreciation and can be scrapped for $88,000 at the end of the project's 5-year life. The sausage system will save the firm $213,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $41,000. If the tax rate is 23 percent and the discount rate is 11 percent, what is the NPV of this project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV

Air handling equipment that costs P12, 000 has a life of eight years with a P2, 000 salvage value. What is the Sinking fund depreciation amount for each year? Assume interest at 4.5% compounded annually.

Answer is -$3, 085,828 ( please show your work)