Initial Investment is 90,000 for Machine A, 85000 for Machine B, 100000 for Machine C. Estimated life is 6 years for all the machines. Scrap Value: Machine A, B, C: 6000 Year Machine A Machine B Machine C 1 24000 8000 15000 2 32000 24000 24000 3 40000 32000 31000 4 24000 48000 37000 16000 32000 40000 6. 18000 35000 25000 Calculate NPV at discounting factors 10% and 8%. And suggest which machine is

Initial Investment is 90,000 for Machine A, 85000 for Machine B, 100000 for Machine C. Estimated life is 6 years for all the machines. Scrap Value: Machine A, B, C: 6000 Year Machine A Machine B Machine C 1 24000 8000 15000 2 32000 24000 24000 3 40000 32000 31000 4 24000 48000 37000 16000 32000 40000 6. 18000 35000 25000 Calculate NPV at discounting factors 10% and 8%. And suggest which machine is

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A machine cost is 3000$ and salvage value 850$, if the rate of interest is 9% and number of years are 5 then what willI be the present worth for fixed output condition? Select one: a. 2448$ b. 2418$ c. 2427$
Net Present Value of both machines. Factors for Machine A: Year 1 0.8929 Year 2 0.7972 Year 3 0.7118 Year 4 0.6355 Machine B Year 4 3.0373
The equivalent annual worth of alternative A is closest to:a. $-25,130b. $-37,100c. $-41,500d. $-42,900
A machine that costs $2522, has a life of 14 years and no scrap value. If money worth 10% then the capitalized cost will be: O $3423.52 O $2793.02 O $5567.22 O $4684.52 O $2162.52 What will be the Future value on an investment account of $9346 compounded semiannually at 8% for 3 years? on O $11871.64 O $11862.27 O $11843.80 O $11858.54 O $11825.67
( 1 contractor want to invest his money in on of project A or B if you know that the interest rate is 10%, choose the best alternative A or B using net present worth method? A 120 000 CU 15 000 CU/YEAR 10 000 CU/YEAR 12 000 CU 12 YEARS 3000 CU Initial investment Annual revenue Annual expense Salvage value Project life Cost of machines replaced every 3 حلقه میشو الباب diq Naama years B 135 000 CU 17 000 CU/YEAR 11 000 CU/YEAR 20 000 CU/YEAR 6 YEARS 3500 CU
a- At 10%, find PW for the following Table Warehouse cost equipment cost Installation cost Annual maintenance costs Annual Revenues Salvage Machine life 0 1 2 3 -90,000 b- A project with an IRR = 20%, it has the following NCF (S) X X 4000 (SUS) 50,000 46.000 Find X? 6,500 8,000 45,000 15,000 15 years
Q5: The machine using PW with first cost $75000, savings the annual operating cost $11000 per year and salvage value $55000 at the end of 4 years find the (P/F, i*,6).
In the choice of mechanical equipment you are required to submit your recommendation as to which of the two steam shovels for earth excavation is better to buy. The basis is 20 year service & interest at 7%. Taxes & insurance are the same in each case: 5% & 1% respectively. Use Annual Cost & CC. 50-ton shovel 70 ton shovel First Cost P30k P38k 20 years 20 years P2k Life Salvage value Annual Operation Annual Upkeep Annual Output P3k P15k P17k P1.5k P2k 150k yards 200k yards
Its required to select one of the two machines, if you know that the firms MARR-12% and if the costs are shown below: Project A Project B Initial cost, $ 7650 12900 Maintenance cost, S/year 1200 900 Salvage value, $ 2000 Economic life, year 4 Compare the two-alternative using: 1-Equavlent Annual worth comparison. 2- Present worth comparison
Compare the machines below using present worth analysis at i10% per year and find which one should be selected Machine Y First Cost Operating Cost Savage Lfe cycle Machine X 20.000 3.000 3.000 3years Firat Cost 30.000 .000 Annuel Operating Cost Salvage Life cycle 3.000 6 yoars
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
21. A machine costs P60,000 and the salvage value is P10,000 after 10 years. Find the book value after 7 years by Straight Line Method. Answer with text and/or attachments: