Year 1 2 3 4 5 Operating Expense $3,000 $3,000 $3,500 $4,000 $4,500 The salvage (market) values of the forklift are also reasonably well known as a function of age: Year 1 2 3 4 5 Salvage Value $6,000 $5,000 $4,000 $2,500 $1,250

A company engaging in selling of laboratory equipment estimates that profit from sales should increase by *2,00, 000 per year if a mobile demonstration unit is built. A large unit with sleeping accommodation for the driver will cost 9, 70,000 while a smaller unit without sleeping cabin will be Rs. 6,30,000. Salvage values for the large and small units after 5 years will be, 197,000 and Rs.35000 respectively. Lodging costs saved by the larger unit should amount 1, 10,000 annually, but its transportation costs will exceed those of the smaller unit by 31, 000. With the money at 9% should a mobile demonstration unit be built? And if so which size is preferable? Use net annual worth to determine which is better and show all the steps and working

Milliken uses a digitally controlled dyer for placing intricate patterns on manufactured carpet squares for home and commercial use. It is purchased for $400,000. Its market value will be $310,000 at the end of the 1st year and drop by $48,000 per year thereafter to a minimum of $30,000. Operating costs are $20,000 the 1st year, increasing by 10% per year. Maintenance costs are only $8,000 the 1st year but will increase by 37% each year thereafter. Milliken's MARR is 18%. Determine the optimum replacement interval for the dyer. Year(s)

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Answer what total relevant cost is for the keep old?

Thomasville Furniture Industries offers several types of high-performance fabrics that are capable of withstanding chemicals as harsh as chlorine. A Midwestern manufacturing company that uses fabric in several products has a report showing that the present worth of fabric purchases over a specified 5-year period was $900,000. If the costs are known to have increased geometrically by 5% per year during that time and the company uses an interest rate of 15% per year for investments, what was the cost of the fabric in year 1?

EV Box is a manufacturer of electric vehicle charging stations and charging software. The initial cost of one part of their manufacturing process was $130,000 with annual costs of $49,000. Revenues were $78,000 in year 1, increasing by $1000 per year. A salvage value of $23,000 was realized when the process was discontinued after 8 years. Determine the rate of return the company made on the process.

Kane Running Shoes is considering the manufacture of a special shoe for race walking, which will indicate if an athlete is running (that is, both legs are not touching the ground). The chief economist of the company presented the following calculation for the Smart Walking Shoe (SWS):• R&D: $200,000 annually in each of the next four yearsFor the manufacturing project:• Expected life span: ten yearsInvestment in machinery: $250,000 (at t = 4) expected life span of the machine ten years• Expected annual sales: 5.000 pairs of shoes at the expected price of $150 per pair. Fixed cost: $300,000 annually• Variable cost: $50 per pair of shoesKane's discount rate is 12%, the corporate tax rate is 40%, and R&D expenses are tax deductible against other profits of the company. Assume that at the end of project that is, after fourteenyears) the new technology will have been superseded by other technologies and therefore willhave no value.(a) What is the NPV of the project?(b) The…

Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store that specializes in fashionable sandals. In time, she hopes to open a chain of sandal shops. As a first step, she has gathered the following data for her new store:   Sales price per pair of sandals $ 30 Variable expenses per pair of sandals 15 Contribution margin per pair of sandals $ 15 Fixed expenses per year:   Building rental $ 11,300 Equipment depreciation 11,300 Selling 9,000 Administrative 13,400 Total fixed expenses $ 45,000 1. What is the break-even point in unit sales and dollar sales? (Do not round intermediate calculations.)

Milliken uses a digitally controlled dyer for placing intricate patterns on manufactured carpet squares for home and commercial use. It is purchased for $400,000. Its market value will be $310,000 at the end of the 1st year and drop by $44,000 per year thereafter to a minimum of $30,000. Operating costs are $20,000 the 1st year, increasing by 7% per year. Maintenance costs are only $8,000 the 1st year but will increase by 37% each year thereafter. Milliken’s MARR is 20%. Determine the optimum replacement interval (years) for the dyer