Kris Kringle Corp. needs to purchase a new delivery vehicle. The Sleigh 9000 model's purchase price is $90,000, will last for 20 years, and requires maintenance costs of $5,000 per year for the first 10 years (years 1-10) and $8,000 per year for the last 10 years (years 11-20). What is the equivalent annual cost (EAC) of this equipment at a discount rate of 12.25%? $6.602 $17957 $13991 $11,000 $6,890
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- Cal Construction Company must choose between two types of cranes. Crane X costs $600,000, will last for 5 years, and will require $60,000 in maintenance each year. Crane Y costs $800,000 and will last for 7 years and will require $30,000 in maintenance each year. Maintenance costs for cranes X and Y are incurred at the end of each year. The appropriate discount rate is 10% per year. Which machine should the company purchase? Crane X as EAC is $218,278.49 Crane X as EAC is $827,447.21 Crane Y as EAC is $946,052.56 Crane Y as EAC is $194,324.40RJR Logistics needs a new color printer. The cost of the printer is $2,025, plus $380 per year in maintenance costs (the first maintence cost would occur in 1 year). The color printer will last for five years. Alternatively, a local company offers to lease the printer to RJR and do the maintenance as well. If the discount rate is 5.7%, what is the most RJR would be willing to pay per year to lease the color printer (the first lease payment would be due in one year)? The most RJR would be willing to pay per year to lease the color printer is closest to: O A. $897 B. $857 C. $884 D. $777OM Construction Company must choose between two types of cranes. Crane A costs $600,000, will last for three years, and will require $60,000 in maintenance each year. Crane B costs $1,000,000, will last for seven years, and will require $40,000 in maintenance each year. Maintenance costs for cranes A and B occur at the end of each year. The appropriate discount rate is 11 percent per year. Question: Which machine should OM Construction purchase?
- Beta Company plans to replace its company car with a new one. The new car costs P120,000 and its estimated useful life is five years without scrap value. The old car has a book value of P15,000 and can be sold at P12,000. The acquisition of the new car will yield annual cash savings of P30,000 before income tax. Income tax rate is 25%. What is the discounted payback period using the IRR?A firm can lease a truck for 5 years at a cost of $39,000 annually. It can instead buy a truck at a cost of $89,000, with annual maintenance expenses of $19,000. The truck will be sold at the end of 5 years for $29,000. a. What is the equivalent annual cost of buying and maintaining the truck if the discount rate is 12%? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Equivalent annual cost $ 20,317.57 b. Which is the better option? O Buy LeaseHT Bowling, Inc is considering the purchase of VOIP phone system. It will require an initial investment of $16,750 and $4,750 per year in annual operating costs over the equipment's estimated useful life of 4 years. The company will use a discount rate of 9%. What is the equivalent annual cost? $9,920 O $15,110 O $12,961 O $4,723
- A new transmission in your truck will cost $9500. Luckily it should reduce maintenance expense by $ 3150 each year for the next 10 years. What is the NPV of the transmission? Use a discount rate of 10.6%even better cakes wants to purchase a new machine for 36850 with a 5-year useful life. The machine is expected to generate additional cash revenues of 4100 per year and reduce operating costs by 5400 each year of its economic life. the discount rate is 9%. what is the amount of net present value of the machine.A firm can lease a truck for 5 years at a cost of $49,000 annually. It can instead buy a truck at a cost of $99,000, with annual maintenance expenses of $29,000. The truck will be sold at the end of 5 years for $39,000. a. What is the equivalent annual cost of buying and maintaining the truck if the discount rate is 12%? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Answer is complete but not entirely correct. Equivalent annual cost S 35,501.30x b. Which is the better option? Buy Lease
- Your company is looking at purchasing a front-end loader at a cost of $120,000. The loader can be billed out at $107.00 per hour. It costs $30.00 per hour to operate the front-end loader and $37.00 per hour for the operator. The useful life of the equipment is five years. Using 1,200 billable hours per year and a MARR of 10%, determine the payback period with interest for the front-end loader. 2.89 4.15 4.52 3.74 3.02 Please write to text formet but don't copy pasteA firm can lease a truck for 4 years at a cost of $35,000 annually. It can instead buy a truck at a cost of $85,000, with annual maintenance expenses of $15,000. The truck will be sold at the end of 4 years for $25,000. a. What is the equivalent annual cost of buying and maintaining the truck if the discount rate is 12%? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Equivalent annual cost b. Which is the better option? Lease O BuyYour company is planning to purchase a new loader for $20,937. If the company keeps the old loader, it will have $1,959 additional maintenance cost for the first year and increases $308 each year till the eighth year. Given the company's minimum attractive rate of return (MARR) is 6%, what is the present cost of keeping the old loader? 6% 1 2 3 4 5 879 6 9 Single Payment Compound Present Amount Worth Factor Factor Find F Find P Given F Given P F/P P/F 1.060 1.124 1.191 1.262 1.338 1.419 1.504 1.594 1689 .9434 .8900 .8396 .7921 .7473 .7050 .6651 .6274 5919 Sinking Fund Factor Find A Given F A/F 1.0000 .4854 3141 .2286 .1774 .1434 .1191 1010 0870 Compound Interest Factors Uniform Payment Series Capital Recovery Factor Find A Given P A/P 1.0600 .5454 .3741 .2886 2374 2034 .1791 1610 1470 Compound Amount Factor Find F Given A F/A 1.000 2.060 3.184 4.375 5.637 6.975 8.394 9.897 11 491 Present Worth Factor Find P Given A P/A 0.943 1.833 2.673 3.465 4.212 4.917 5.582 6.210 6.802 Arithmetic…