Appledale Dairy is considering upgrading an old ice-cream maker. Moderate upgrading costs $7050 now and yields annual savings of $4800 in the first year, and decreases by $300 dollars every year after that. If the upgraded ice-cream maker will last for seven years, what is the present worth of the upgrading option? Use a present worth comparison. Appledale's MARR is 9 percent.

How much interest (to the nearest dollar) would be saved on the following loan if the home were financed for 15 rather than 30 years? A $507,000 home bought with a 20% down payment and the balance financed for 30 years at 4.3% $ $161,850 X

Galvanized Products is considering purchasing a new computer system for their enterprise data management system. The vendor has quoted a purchase price of $100,000. Galvanized Products is planning to borrow one-fourth of the purchase price from a bank at 16 percent compounded annually. The loan is to be repaid using equal annual payments over a 3-year period. The computer system is expected to last 5 years and has a salvage value of $3,000 at that time. Over the 5-year period, Galvanized Products expects to pay a technician $20,000 per year to maintain the system but will save $50,000 per year through increased efficiencies. Galvanized Products uses a MARR of 14 percent/year to evaluate investments. What is the ERR (external rate of return) of this investment? A 13.24% B) 12.62% C) 14.57% (D) 16.52%

Find the present worth of the following infinite cash flows, using i = 8%/year. Year                Cash flows at the end of each year     1                      0 2                      0 3                      0 4                      $500 5                      $1100 6                      $500 7                      $1100 8                      $500 9                      $1100 :                       :

Please choose one of the following options. Double check your work. There is no additional information. This is the question and those are your options. PW analysis stands for Present Worth Analysis. It is a term used in engineering economics.   What will be the total lifetime for every project if we compare them with PW analysis? Project A has a lifetime of 9 years, project B has a lifetime of 7 years, and project C has a lifetime of 3 years.   9   189   126   27   63

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Q1) A restaurant uses 3000 kg of meat each month.  The restaurant is replenishing the meat using an EOQ value of 2000 kg.  The EOQ value was computed assuming an interest rate of 36 percent per year.  Assume that the meat cost is 4TL per kg to the restaurant.   What is the setup cost used in determining the EOQ value?0 What is the total cost of ordering and holding inventories?

Project P has a cost of $1,000 and cash flows of $300 per year for three years plus another $1,000 in Year 4. The discount rate is 15 percent. a. What's the discounted payback period? b. If the company requires a payback of three years or less, would the project be accepted?

You are considering purchasing a CNC machine which costs $150,000. This machine will have an estimated service life of 13 years with a net after-tax salvage value of $15.000. Its annual after-tax operatin and maintenance costs are estimated to be $44,000. To expect an 16 % rate of return on investment, what would be the required minimum annual after-tax revenues? Click the loon to view the interest factors for discrete compounding when /- 16% per year. The required minimum annual after-tax revenues would be $thousand. (Round to one decimal place.)

Determine the breakeven resale price 15 years from now of an apartment house that can be bought today for $250,000. Its annual net income is $22,000. The owner wants a 10% annual return on her investment.