Given the following information: Price/Unit 225 VC/Unit 75 FC 500,000 Tax Rate 21% Rate 10% Machine Cost 3,000,000 Life 4 Depreciation Straight Line   1. Calculate the equivalent annual cost of the machine. (Round to 2 decimals) 2. Calculate the financial break-even number of units for the project. (Round to 2 decimals) 3. Using the FBE units, calculate the annual operating cash flows for the project. (Round to 2 decimals)

A project is expected to generate annual revenues of $ 119, 300, with variable costs of $75, 400, and fixed costs of $15,900. The annual depreciation is $3,950 and the tax rate is 34 percent. What is the annual operating cash flow? Multiple Choice $61, 143 $19, 823 $45, 243 $ 28,000 $31,950

Q1: For the machines indicated below. Consider i= 10% per year First cost Annual cost Salvage value Life duration Machine A 20,000 $ 5,000 $ 7,500 $ 3 Machine B 25,000 4,000 6,000 4 A- Draw cash flow diagram for each machine for one cycle of each project B- Draw cash flow diagram for each project considering the LCM life cycle (Hint: different project duration, need to have the LCM life cycle) C- Compare the machines to select best alternative one based on Present worth analysis method D- Repeat part B considering Future worth analysis

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Required information A company that manufactures magnetic flow meters expects to undertake a project that will have the cash flows estimated. First cost, $ Equipment replacement cost in year 2, $ Annual operating cost, $/year Salvage value, $ Life, years -880,000 -300,000 -930,000 250,000 14 At an interest rate of 10% per year, what is the equivalent annual cost of the project? Find the AW value using tabulated factors The equivalent annual cost of the project is $- 980,731.95

Bella Ltd wishes to invest in either project X or project Y, and has provided you with the following information.           Project X Project Y       Initial Investment   Shs. 20,000 Shs. 30,000       Estimated Life   5 years 5 years         Scrap Value     Shs. 1,000 Shs. 2,000       The profits before depreciation and after taxation (cash flows) are as follows:                                 Year 1   Year 2     Year 3     Year 4   Year 5                               Project x   Shs.   Shs.   Shs.   Shs.   Shs.   5,000   10,000     10,000     3,000   2,000   Project y                   20,000   10,000     5,000     3,000   2,000…

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Three machine alternatives are being evaluated by a company. The annual cash flows for each of these three alternatives are given in the table below (all in dollars). Based on the NPW criterion, rank these three alternatives from most attractive to least attractive assuming a MARR of 7% compounded annually. n Alternative 1 Alternative 2 Alternative 3 ======== 0 -1,400 -2.000 -1,000 1 300 300 400 2 500 600 400 ==================== ==#== 3 500 800 400 4 700 1,000 400 Alternative 1– Alternative 3 – Alternative 2 Alternative 2 – Alternative 3 – Alternative 1 Alternative 3 – Alternative 2 - Alternative 1 O Alternative 3 – Alternative 1- Alternative 2 O O O O

What is the annual equivalent cost of purchasing a lift truck that has an initial cost of $85,000, an annual operating cost of $13,500, and an estimated salvage value of $23,000 after six years of use at an annual interest rate of 6%? X More Info Equal Payment Series Single Payment Compound Present Amount Worth Compound Amount Factor (F/A, I, N) Sinking Present Fund Worth Factor Factor Capital Recovery Factor (A/P, i, N) Factor Factor (F/P, i, N) (P/F, i, N) (A/F, i, N) (P/A, i, N) 1.0800 0.9434 1.0000 1.0000 0.9434 1.0800 1.1238 0.8900 2.0800 0.4854 1.8334 0.5454 1.1910 0.8396 3.1836 0.3141 2.6730 0.3741 1.2625 0.7921 4.3746 0.2288 3.4861 0.2886 1.3382 0.7473 5.6371 0.1774 4.2124 0.2374 1.4185 0.7050 6.9753 0.1434 4.9173 0.2034 0.6851 8.3938 0.1191 5.5824 0.1791 1.5038 1.5938 1.6895 0.6274 9.8975 0.1010 6.2098 0.1610 0.5919 11.4913 0.0870 6.8017 0.1470 1.7908 0.5584 13.1808 0.0759 7.3801 0.1359 SAWNIN 1 2 3 4 5 67899 10

Using the following information find the project's cash flow.  Once you have that information find the NPV, PI and IRR.   Cost of new equipt     7,800,000     Installation costs     200,000                 Unit Sales Year Units sold         1             80,000         2           130,000         3           140,000         4             90,000         5             70,000                   Sales price per unit $300 in years 1-4, $250 in year 5     Variable cost per unit $225/unit         Annual fixed costs $225,000 in years 1-5                   Working capital requirements: Initial working capital requirement $100,000     Each year net working capital equal to 10% of the year's sales   All working capital terminated at the end of year 5               Depreciation Bonus depreciation method - all is taken in year 1   Income tax rate 21%         Required rate of return 12%