Project XYZ has a first cost of $75,000, operating andmaintenance costs of $10,000 during each year of its 10 yearslife, and a $15,000 salvage value. What is its equivalent uniformannual cost (EUAC) if the interest rate is 10%/year? Most nearlynumber for answer.O No correct answer21546O 21262216222622322126

This concept is known as the time value of money. It is one of the methods of the capital budgeting…

Answered: Project XYZ has a first cost of…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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You are required to investigate the following project: The initial Investment at n=0 is $100,000. The project life is 10 years. Estimated annual operating cost : 34,000. The required minimum return on the investment :14%. The salvage value 8,000. What is the minimum annual revenues that should be generated to make the project worthwhile? 97842 52758 81921 45716 O O O O
From the given values below, which machine should be selected using (a) Present worth Method and (b) Future worth Method if interest rate is 10% per year? Machine Initial Cost (Php) Annual Operating Cost A В 146,000 15,000 220,000 10,000 75,000 25,000 Annual Revenue 80,000 10,000 Salvage Value Useful Life (years) 6
Two alternatives are being considered for installation. Which should be selected based on an interest rate of 5.6% per year ? Alternative A Alternative B First Cost, $ 135,000 462,000 Annual Operating Cost, $/yr 76,000 34,600 Salvage value, $ 71,200 n/a Life, years 9 ∞
A project has a first cost of $14,000, uniform annual benefits of $2,400, and a salvage value of $3,000 at the end of its 10-year useful life. What is its net present worth at an interest rate of 12%? Select one: O a. $300 O b. $526 O c. $450 O d. $600 Next page R03-07.06.2021 Time:14.30 Jump to. Rabiu (Log out) _204 prime Video AK tu O 4x O ENG 14:38 24/06/2021
Determine the FW of the following engineering project when the MARR is 16% per year. Is the project acceptable? Proposal A Investment cost $9,500 5 years -$1.200 Expected life Market (salvage) value Annual receipts Annual expenses $8,000 $4.500 A negative market value means that there is a net cost to dispose of an asset A Click the icon to view the interest and annuity table for discrete compounding when the MARR is 16% per year The FW of the following engineering project is S (Round to the nearest dollar) According to the FW Decision Rule the project Vaccentable
Consider palletizer at a bottling plant that has a first cost of $134,338, has operating and maintenance costs of $17.980 per year, and an estimated net salvage value of $37,509 at the end of 30 years. Assume an interest rate of 8%. What is the future worth of this project? Enter your answer as follow: 123456.78
A project generates same amount of revenue annually for 5 years, then its value is OMR, If the net present value for the project is OMR 150000 and the present value of total expenses is OMR 125000. Assume interest rate 10% p.a Select one: O a. 40263 O b. 72544 O c. 25000 O d. 275000
Determine the FW of the following engineering project when the MARR is 14% per year. Is the project acceptable? Proposal A $10.000 4 years - $1,000 Investment cost Expected life Market (salvage) value Annual receipts $9,000 Annual expenses $4,500 A negative market value means that there is a net cost to dispose of an asset A Click the icon to view the interest and annuity table for discrete compounding when the MARR is 14% per vear The FW of the following engineering project is S. (Round to the nearest dollar.) According to the FW Decision Rule the project acceptable. - X More Info is is not Discrete Compounding; i-14% Single Payment Compound Amount Factor Compound Amount Factor Uniform Series Sinking Capital Recovery Factor To Find A Given P AIP Present Worth Factor Present Worth Factor Fund Factor To Find F Given P FIP To Find F Given A To Find P Given F PIF 0.8772 0.7695 0.6750 0.5921 To Find A To Find P Given A Given F AIF FIA PIA 1.1400 1.2996 1.4815 1.6890 1.0000 0.8772 1.6467…
1.A project has a first cost of $16,999with a life of 10 years and a salvage value of $2,500. If the MARR is12% and provides benefits of about$2,750 annually, what is the PW other project
Determine the B/C ratio for the following project. First Cost P100, 000 Project life, years 5 Salvage value P10, 000 Annual benefits Р60, 000 Annual O and M Р22, 000 Interest rate, % 15
Egyptat Telecom is considering two projects for expansion of a well-known system. Both alternatives are summarized below. Egyptsat's MARR is 0.08 per year for such projects, and repeatability may be assumed. Expansion Project A B Capital Investment 1001000 1250000 Annual Revenue 761400 580700 Annual Expenses 500200 359900 Useful Life 5 8 Salvage Value 100000 150000 a) what is the LCM? b) Calculate AW(A) = ) Calculate AW(B) = d) which alternative should you recommend to Egyptsat Telecom? (1 or 2)
You are given opportunity to purchase product for $42, 000. The product will have annual operating expenses of $4,000, and a salvage value of $20,000 at the end of its useful life of 6 years. Assuming a discount rate of 9.0%, what is the minimum acceptable revenue to justify taking this project? A 1.01% B $333 C $2704 D $767 E $10704

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