Your firm is thinking about investing $200,000 in the overhaul of a manufacturing cell in a lean environment. Revenues are expected to be $36,000 in year one and then increasing by ​$12,000 more each year thereafter. Relevant expenses will be $5,000 in year one and will increase by $2,500 per year until the end of the​ cell's five​-year life. Salvage recovery at the end of year five is estimated to be $8,000. What is the annual equivalent worth of the manufacturing cell if the MARR is 12​% per​ year?

Zoysia University must purchase mowers for its landscape department. The university can buy six EVF mowers that cost $8,400 each and have annual, year-end maintenance costs of $1,850 per mower. The EVF mowers will be replaced at the end of Year 4 and have no value at that time. Alternatively, Zoysia can buy seven AEH mowers to accomplish the same work. The AEH mowers will be replaced after seven years. They each cost $7,400 and have annual, year-end maintenance costs of $2,150 per mower. Each AEH mower will have a resale value of $900 at the end of seven years. The university’s opportunity cost of funds for this type of investment is 8 percent. Because the university is a nonprofit institution, it does not pay taxes. It is anticipated that whichever manufacturer is chosen now will be the supplier of future mowers. What is the EAC of each type of mower? (Your answers should be a negative value and indicated by a minus sign. Do not round intermediate calculations and round your answers…

An integrated, combined cycle power plant produces 280 MW of electricity by gasifying coal. The capital investment for the plant is $460 million, spread evenly over two years. The operating life of the plant is expected to be 25 years. Additionally, the plant will operate at full capacity 77% of the time (downtime is 23% of any given year). The MARR is 8% per year. a. If this plant will make a profit of two cents per kilowatt-hour of electricity sold to the power grid, what is the simple payback period of the plant? Is it a low-risk venture? b. What is the IRR for the plant? Is it profitable? a. The simple payback period of the plant is years. (Round up to one decimal place.) It's a venture. b. The IRR for the plant is %. (Round to one decimal place.) The plant is

Today, you have $35,000 to invest. Two investment alternatives are available to you. One would require you to invest your $35,000 now; the other would require the $35,000 investment two years from now. In either case, the investments will end five years from now. The cash flows for each alternative are provided below. Using a MARR of 13%, what should you do with the $35,000 you have? Click the icon to view the alternatives description. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 13% per year. The FW of the Alternative 1 is $ (Round to the nearest dollar.) More Info Year OT N345 0 1 2 Alternative 1 - $35,000 $15,000 $15,000 $15,000 $13,000 $13,000 Alternative 2 $0 $0 - $35,000 $16,500 $16,500 $16,500 0 X

Please do not give solution in image formate thanku. Biomet Implants is planning new online patient diagnostics for surgeons while they operate. The new system will cost $300,000 to install in an operating room, $5000 annually for maintenance, and have an expected life of 10 years. The revenue per system is estimated to be $80,000 in year 1 and to increase by $10,000 per year through year 10. a)  Determine NPV to see if the project is economically justified using PW analysis and an MARR of 10% per year. b) Insert a Triangle distribution with minimum at $8000, average 10,000 and maximum at 12000 as the input distribution for the revenue increase. Perform Monte Carlo Simulation and discuss the results.

You are considering buying a company for $699, 000. If you expect the business to earn $97,000 per year, how long is the discounted payback period if your MARR is 5% ? (in years)

Please use a financial calculator to solve. Be sure to list your steps. You are evaluating two different silicon wafer milling machines. The Techron I costs $237,000, has a three-year life, and has pretax operating costs of $62, 000 per year. The Techron II costs $ 415,000, has a five - year life, and has pretax operating costs of $ 35,000 per year. For both milling machines, use straight - line depreciation to zero over the project's life and assume a salvage value of $39, 000. If your tax rate is 21 percent and your discount rate is 8 percent, compute the EAC for both machines. (Your answer should be a negative value and indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

A deep water port for imported liquefied natural gas (LNG) is needed for three years. At the end of the third year, it will cost more to dismantle the LNG facility than it produces in revenues. The cash flows are estimated as follows: The IRR for this LNG facility is closest to which choice below? Choose the closest answer below. A. The IRR for the LNG facility is 9.5% per year. B. The IRR for the LNG facility is 4.7% per year. C. The IRR for the LNG facility is 12.2% per year. D. The IRR for the LNG facility is 14.6% per year. EOY 0 1 2 3 Net Cash Flow - $54 million 44 million 40 million - 24 million

What would be the annual worth on this investment?

The following cash flows result from a potential construction project for your company: 1. Receipts of $505,000 at the start of the contract and $1,200,000 at the end of the fourth year 2. Expenditures at the end of the first year of $400,000 and at the end of the second year of $900,000 3. A net cash flow of $0 at the end of the third year. Using an appropriate rate of return method (Approximate ERR), for a MARR of 20%, should your company accept this project (Perform all calculations using 5 significant figures and round your answer to one decimal place. Also remember that text answers are case-sensitive):? Answers entered using text are case sensitive! What is the approximate ERR for this project? Number Should your company undertake this project? (Enter either 'Yes' or 'No'): %