Question 5 Part A: You are considering a large commercial property purchase. You will need an initial deposit of $100,000. The annual revenues for the property are expected to be$15,000 starting in year 1. Annual operating and maintenance costs are expected to be $8,000 every year starting in year 1. The property is expected to last for 30 years. What is theROR?Question 5 Part A: Choose the correct Cash Flow Diagram for this scenario from the following choices.Option A$100,000Option C-$100,00012$15,000$8,000$15,0002-$8000Option B$15,0000А311230$8,000$100,000Option D$15,0000А311230-$8000-$100,000

A Cash Flow Diagram (CFD) is a visual representation of the inflows and outflows of cash over a…

Answered: Question 5 Part A: You are considering…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Laguna Memorial Hospital (LMH) buys $800,000 in Personal Protective Equipment (PPE) each year from Colorado Medical Supply Corporation (CMSC), which offers LMH terms 3.2/20, net 60. Currently, LMH is paying the supplier the full amount due on Day 60, but it is considering taking the discount, paying on Day 20 and replacing the trade credit with a bank loan that has a 6 percent annual cost. Assume 360 days per year. a. what is the amount of free trade credit that LMH obtains from CMSC? b. What is the amount of costly trade credit? c. What is the approximate annual cost of the costly trade credit? d. Should LMH replace its trade credit with the bank loan? Please explain.
use excel attach you FILE and keep it neat
Find the Future Worth (F) of the following geometric series cash flow: 0 1 1000 i = 10% 23 4 1100 1210 g= 10% 10 2,358
Please answer question 4 with details on how to do it. Thank you.
Your company is planning to purchase a new log splitter for is lawn and garden business. The new splitter has an initial investment of $180,000. It is expected to generate $25,000 of annual cash flows, provide incremental cash revenues of $150,000, and incur incremental cash expenses of $100,000 annually. What is the payback period and accounting rate of return (ARR)?
You are considering purchasing a CNC machine which costs $150,000. This machine will have an estimated service life of 13 years with a net after-tax salvage value of $15.000. Its annual after-tax operatin and maintenance costs are estimated to be $44,000. To expect an 16 % rate of return on investment, what would be the required minimum annual after-tax revenues? Click the loon to view the interest factors for discrete compounding when /- 16% per year. The required minimum annual after-tax revenues would be $thousand. (Round to one decimal place.)
You are considering a large commercial property purchase. You will need an initial deposit of $100,000. The annual revenues for the property are expected to be $15,000 starting in year 1. Annual operating and maintenance costs are expected to be $8,000 every year starting in year 1. The property is expected to last for 30 years. What is the ROR?
A new baseball stadium is being considered to be built in a metropolitan area by High Tech, Inc., at a cost of $50M. It is estimated that the annual maintenance cost will be $100K. The construction company recommends a major renovation every 50 years at a cost of $10M. If the corporation wants to set up a trust fund to pay for the stadium, its maintenance, and periodic renovations for an undefined number of years to come, what amount should be invested in the trust fund if the fun earns an annual interest rate of 6%? Group of answer choices $52,223,000 $60,566,667 $60,666,667 $73,500,429 $58,600,000
Irrigation canals are proposed to be built in an arid region. The initial cost is estimated to be P2.5M with annual maintenance & operation cost of P48k. For maximum efficiency, the canal will be dredged every 5 years at a cost of P50k. Annual income from farmers & cooperatives who benefit from the project is expected to be P320k. Assuming an annual interest rate of 9% and a 30-year planning horizon, what is the computed ratio? a). 0.86 b).1.068 c).1.608 d). 0.68
A regional municipality is studying a water supply plan for its tri-city and surrounding area to the end of year2070. To satisfy the water demand, one suggestion is to construct a pipeline from a major lake some distanceaway. Construction would start at the beginning of 2030 and take five years at a cost of $30 million per year.The cost of maintenance and repairs starts after completion of construction and for the first year is $2 million,increasing by 2 percent per year thereafter. At an interest rate of 8 percent, what is the present worth of thisproject? Assume all cash flows take place at year-end. Consider the present to be the end of 2025/beginningof 2026. Assume there is no salvage value at the end of year 2070.Click the icon to view the table of compound interest factors for discrete compounding periods when i=8%.The present worth of this project is $ million.(Round to two decimal places as needed
A regional municipality is studying a water supply plan for its tri-city and surrounding area to the end of year 2070. To satisfy the water demand, one suggestion is to construct a pipeline from a major lake some distance away. Construction would start at the beginning of 2030 and take five years at a cost of $15 million per year. The cost of maintenance and repairs starts after completion of construction and for the first year is $3 million, increasing by 2 percent per year thereafter. At an interest rate of 6 percent, what is the present worth of this project? Assume all cash flows take place at year-end. Consider the present to be the end of 2025/beginning of 2026. Assume there is no salvage value at the end of year 2070. Click the icon to view the table of compound interest factors for discrete compounding periods when i = 6%. The present worth of this project is $ million. (Round to two decimal places as needed.)
If the interest rate is 4%, what is the approximate future value of $15,000 in 10 years? $15,900 $17,949 $10,133 $22,204

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