QZY, Inc. is evaluating new widget machines offered by three companies. The chosen machine will be used for 3 years. Company Company Company A B C $15,000 $25,000 $20,000 First cost Maintenance and operating 1,600 8,000 900 Annual benefit 13,000 9,000 Salvage value 3,000 6,000 4,500 (a) Construct a choice table for interest rates from 0% to 100%. (b) MARR = 15%. From which company, if any, should you buy the widget machine? Use rate of return analysis. 400
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- Elijah Enterprises will need to upgrade the computer system in 6 years. They anticipate the upgrade to cost $95,300. If the discount rate is 15%, what will be the required yearly investment needed to obtain the money for the upgrade?Round your (1+R)^n value to 2 decimal places and use that number for your final amount required rounded to the nearest dollar. Future Value / (1+R)^n = Amount Required / = What would be required if the discount rate was 8%? Future Value / (1+R)^n = Amount Required / =Example : You want to buy a $18,500 car. The company is offering a 3% interest rate for 4 years. What will your monthly payments be? I will do this one for you and show you how I want you to describe your formula/inputs in excel if that is how you choose to go about solving problems 2 through 5 - which I strongly recommend. If you choose to perform the calculations by hand show the formula used with values. Excel: Formula used: PMT Rate input: .03/12 NPer input: 4*12 Pv input: 18500 Answer : $409.49 per month 2. You want to buy a $22,500 car. The company is offering a 4% interest rate for 5 years. a.What will your monthly payments be? Round to the nearest cent .b. Assuming you pay that monthly amount for the entire 5 years, what is the total amount of money you will pay during those 5 years for the car? c.How much interest will you pay during those 5 years?Gardner Denver Company is considering the purchase of a new piece of factory equipment that will cost $420,000 and will generate $95,000 per year for 5 years. Calculate the IRR for this piece of equipment. For further Instructions on internal rate of return in Excel, see Appendix C.
- Falkland, Inc., is considering the purchase of a patent that has a cost of $50,000 and an estimated revenue producing life of 4 years. Falkland has a cost of capital of 8%. The patent is expected to generate the following amounts of annual income and cash flows: A. What is the NPV of the investment? B. What happens if the required rate of return increases?Caduceus Company is considering the purchase of a new piece of factory equipment that will cost $565,000 and will generate $135,000 per year for 5 years. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return In Excel, see Appendix C.The IE Department is considering to buy a printing machine that is expected to be obsolete in 5 years. The machine is worth P104703. The prevailing interest rate is 15%/year. the estimated annual gross incomes from the use of this machine is as follows: Year Inco me 1 2 Php Pho 25,0 26,0 00 00 Add your answer 3 Round your answer to 2 decimal places. 4 Php Php 29,0 30,0 00 00 5 32,0 00
- Vaughn Excavating Inc. is purchasing a bulldozer. The equipment has a price of $97,600. The manufacturer has offered a payment plan that would allow Vaughn to make 10 equal annual payments of $15.883.95, with the first payment due one year after the purchase. x Your answer is incorrect. How much total interest will Vaughn pay on this payment plan? (Round factor values to 5 decimal places, eg 1.25124 and final answer to 0 decimal places, eg. 458.5811 Total interest 501877 Your answer is partially correct. Vaughncould borrow $97,600 from its bank to finance the purchase at an annual rate of 9% Click here to view factor tables Should Vaughn borrow from the bank or use the manufacturer's payment plan to pay for the equipment? (Round factor values to decimal places, s 1.25124 and final answer to O decimal places, eg 7%) 15.00 % Manufacturer's rate from the DaElijah Enterprises will need to upgrade the computer system in 6 years. They anticipate the upgrade to cost $106,200. If the discount rate is 13%, what will be the required yearly investment needed to obtain the money for the upgrade?Round your (1+R)^n value to 2 decimal places and use that number for your final amount required rounded to the nearest dollar.Lipsion Ltd company is thinking about investing in one of two potential new productsfor sale. The projections are as follows: year revenue/ product s revenue/ product v0 (150,000) outlay (150000) outlay1 14000 150002 24000 253333 44000 520004 84000 63333 Calculate the IRR for Product V only using 1% and 17% to 2 d.p.
- Sub : FinancePls answer very fast.I ll upvote correct answer . Thank You ( dont use CHATGPT ) A company is planning to introduce a new product in near future. In order to have sufficient money for investment, it plans to save some equal amounts every six months for the next five years. In the fifth year the company acquires patent rights to the new product by investing $1000000. However, the manufacturing of the new product is expected to initiate in the second quarter of the seventh year with an investment of $10000 and an increase of $1000 per quarter for the next six quarters. If the interest rate is 10% compounded semi-annually during the first two years, 12% compounded semi-annually for the next three years, 13% compounded quarterly for the following two years and 16% compounded quarterly thereafter, calculate the money to be invested.You are offered the right to receive $1,000 per year forever, starting in one year. If your discount rate is 6%, what is this offer worth to you? This offer is worth $ View an example (Round to the nearest dollar.) Get more help - O search D m/Player/Player.aspx?cultureld=&theme-finance&style=highered&disableStandbyIndicator=true&assignmentHandlesLocale=true 4- A www. Clear all 163. Calculate the internal rate of return for a machine that costs $550,000 and provides annual revenue of $125,000 per year for 5 years. You can assume all revenue is received once a year at the end of the year. a. Compare the IRR to the interest rate on a loan to fund the machine cost at 5.3%. Based on this information should you take on a loan to purchase this machine. Justify your answer.