fe of 4 years and no salvage value. Annual revenues would incre mcrease by $41,000. Vaughn uses the straight-line method to com s 10%. te the annual rate of return. l rate of return %

Using the previous table, enter the correct factor for three periods at 5%: Periodic payment x Factor = Present value $6,000 x   = $16,338 The controller at Ross has determined that the company could save $6,000 per year in engineering costs by purchasing a new machine. The new machine would last 12 years and provide the aforementioned annual monetary benefit throughout its entire life. Assuming the interest rate at which Ross purchases this type of machinery is 9%, what is the maximum amount the company should pay for the machine? $fill in the blank 5aca5ff34fa005f_2 (Hint: This is basically a present value of an ordinary annuity problem as highlighted above.) Assume that the actual cost of the machine is $50,000. Weighing the present value of the benefits against the cost of the machine, should Ross purchase this piece of machinery?  Use snippets to answer

Can someone please solve this question using hand calculations only? PLEASE AND THANK YOU!!!

5. Compare the following 2 alternatives with a method of your choice. The market rate is 6% and inflation is expected to run at 2.5% per year. Alt A B Construction cost $ Benefits $/yr 450,000 380,000 2,000,000 1,500,000 Salvage 200,000 150,000 Life (yrs) 12 9

The equivalent annual worth of alternative A over an infinite time period is closest to:a. $-25,000b. $-27,200c. $-31,600d. $-37,100

You invested $100,000 in a project and received $40,000 at n = 1, $40,000 atn = 2, and $30,000 at n = 3 years. For some reason, you need to terminate theproject at the end of year 3. Your interest rate is 10%; what is the project balanceat the time of termination?(a) gain of $10,000 (b) loss of $8,039(c) loss of $10,700 (d) just breakeven

Q1. A machine costs the company K98,000 and its effective life is estimated to be 12 years. If the scrap realizes K3,000 only, what amount should be retained out of profits at the end of each year to accumulate at compound interest at 5% per annum? Q2. A mortgage of K200,000 is to be repaid over a 25 year period at a fixed interest rate of 4.5 %. Calculate the monthly repayments.

Consider the mutually exclusive alternatives given in the table below. The MARR is 10% per year. Assuming repeatability, which alternative should thecompany select? (a) Alternative X (b) Alternative Y (c) Alternative Z (d) Do nothing.

A 5-year project is estimated to cost $700,000 and have no residual value. If the straight-line depreciation method is used and estimated total income is $231,000, determine the average rate of return giving effect to depreciation on the investment. Round your percentage answer to one decimal place (for example, a value of .1048 rounds to 10.5%).fill in the blank 1 %

Perform a present worth (PW)-based evaluation of the two alternatives below using a spreadsheet. The after-tax minimum acceptable rate of return (MARR) is 8% per year, Modified Accelerated Cost Recovery System (MACRS) depreciation applies, and Te=40%. The (GI -OE) estimate is made for the first 3 years; it is zero in year 4 when each asset is sold. Alternative First Cost, $ Salvage Value, Year 4, $ GI-OE, $ per Year Recovery Period, Years X -8,000 0 3,500 3 Y -13,000 2,000 5,000 3 The PW for alternative X is determined to be $ The PW for alternative Yis determined to be $ Alternative (Click to select) is selected.