5 Problem 2-30 CCA and UCC (LOS) Our new computer system cost us $146.900 we purchase price. CCA on the compute Calculate the CCA and UCC values for five years. S sign in your response) 1 2 $ B $ 6 ССА S $ $ S mediate calculations and final answers to 2 d What will be the after-tax proceeds from the sale assuming the asset pool remains open? Assume a 40% ta response.) After-tax proceeds
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- 4. Problem 11.01 (NPV) eBook 8 Problem Walk-Through Project L requires an initial outlay at t = 0 of $55,000, its expected cash inflows are $13,000 per year for 9 years, and its WACC is 9%. What is the project's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. $ Grade it Now Save & ContinueQuestion 4: You have a opportunity to make a investment that has $10.000,000 landing, 1.500.000 machine, outsourcing 500.000 and finance cost 1.000.000. Machines have no scrap value at end of 4th year. You will pay interest payment at the end of 4rd year, that is $500.000. If you make this investment now, you will receive $4.500,000 one year from today, $3.000,000, $5.000,000 and $ 4.000,000 respectively. The appropriate discount rate for this investment is 14 percent. Tax rate is % 30. Should you make the investment? Why?Quiz VII Saved 1 A precision lathe costs $11,600 and will cost $28,000 a year to operate and maintain, If the discount rate is 10% and the lathe will last for 4 years. What is the equivalent annual cost of the tool (Enter your answer os positive value. Round your enswer to the neerest cent.) The equivalent antnial cost s 00::02
- Problem 8-33 Equivalent Annual Annuity (LO5) A firm can lease a truck for 4 years at a cost of $47,000 annually. It can instead buy a truck at a cost of $97,000, with annual maintenance expenses of $27,000. The truck will be sold at the end of 4 years for $37.000. a. What is the equivalent annual cost of buying and maintaining the truck if the discount rate is 10% ? (Do not round intermedi calculations. Round your answer to 2 decimal places.) Equivalent annual costQuestion 7 Sart Aner A Project of a building with 25 flats being evaluated for 15 years. Because of the growth for the city only 90% from the flats will be rented. This project has construction cost of 100000s and land cost is 50000s. The annual maintenance and operation cost per flat is 94.45 and monthly rent for each flat is 1305. Monthly tax is around 0.5% from land investment and there is annual cost saving of 5005. Knowing that land will be sold at the end of 15 years with the same land invested value. Assume that your MARR= 20% What is the AW value? Ouestinn6.1 Calculating Project NPV Paul Restaurant is considering the purchase of a $9,300 soufflé maker. The soufflé maker has an economic life of five years and will be fully depreciated by the straight-line method. The machine will produce 1,400 soufflés per year, with each costing $1.97 to make and priced at $4.95. The discount rate is 14 percent and the tax rate is 21 percent. Should the company make the purchase?
- Problem C-3A Determine present value alternatives (LOC-2, C-3) Hollywood Tabloid needs a new state-of-the-art camera to produce its monthly magazine. The company is looking at two cameras that are both capable of doing the job and has determined the following: Camera 1 costs $5,300. It should last for eight years and have annual maintenance costs of $260 per year. After eight years, the magazine can sell the camera for $370. Camera 2 costs $4,800. It will also last for eight years and have maintenance costs of $830 in year three, $900 in year five, and $1,000 in year seven. After eight years, the camera will have no resale value. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Required: 1-a. Assume that an interest rate of 9% properly reflects the discount rate in this situation and that maintenance costs are paid at the end of each year. Determine the total cost of cameras. Camera 1 Camera 2…Use Payback analysis at 15% to select a system for the following system System 1 system 2 First cost $ 15,000 13,000 2.000 (Year 1 -5) NCF, $ per year 3,000 3,000 (year 6- 14) Maximum 14 life years Find the no-return payback for system one A.5 Years v Find the no-return payback for system two? B. 6 years v Which system has the better payback period? C. system 1 v which system has longer payback period? D. system 2 E. 4 years F. 7 yearsProblem 8-1 Calculating Future Value [LO8-1] Krista Lee can purchase a service contract for all of her major appliances for $190 a year. If the appliances are expected to last for 16 years and she earns 6 percent on her savings, what would be the future value of the amount Krista will pay for the service contract? (Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, Exhibit 1-D) Note: Use appropriate factor(s) from the tables provided. Round time value factor to 3 decimal places and final answer to 2 decimal places. Future value
- Problem 8-38 Replacement Decision (LO4) A forklift will last for only 2 more years. It costs $5,000 a year to maintain. For $20,000 you can buy a new lift that can last for 10 years and should require maintenance costs of only $2,000 a year. a. If the discount rate is 5% per year, should you replace the forklift? Equivalent annual cost of the new machine= Equivalent cost of owning and operating the new machine= b. If the discount rate is 10% per year, should you replace the forklift? Equivalent annual cost of the new machine= Equivalent cost of owning and operating the new machine=Required information Problem 14.056 The two machines shown are being considered for a chip manufacturing operation. Assume the MARR is a real return of 14% per year and that the inflation rate is 6.7% per year. A B Machine First Cost, $ -146,000 -820,000 -5,000 -70,000 M&O, $ per year Salvage Value, $ 40,000 200,000 Life, years 5 00 Problem 14.056.a: Compare two alternatives based on their AW values without inflation consideration Which machine should be selected on the basis of an annual worth analysis if the estimates are in constant-value dollars? What is the annual worth of the selected alternative? Select machine (Click to select]: wwwwwwwwwwww wwwwww... The annual worth of the alternative is $aple # 1 A firm is considering which of two mechanical devices to install to reduce costs in a particular situation. Both devices cost $1000 and have useful lives of 5 years and no salvage value. Device A can be expected to result in $300 savings annually. Device B will provide cost savings of $400 the first year but will decline $50 annually making the second-year savings $350, the third-year savings $300, and so forth. With interest at 7%, which device should the firm purchase?