9. Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life. It has a salvage value of $3000 at the end of 10 years. If the MARRIS 15 percent, what is the annual worth of this project?
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- 2. You have been asked to perform a sensitivity analysis on a plant modernization plan. The initial investment is $30,000. Expected annual savings is $13,000. Salvage value is $7,000 after a 7 year planning horizon. The MARR is 12% a. Determine the PW of this modernization. cion 4 2.b. -80% cion 5 2.c. -60% cion 6 2.d. -40% zion 7 2.e. -20% cion 8 2.f. +20% tion 9 2.g. +40% cion 10 2.h. Determine the percentage change in net annual savings that causes a reversal in the decision regarding the attractiveness of the project 10 10 00 00 10- 10 00Cost component Alpha Beta Charlie development 100,000 immediately 150,000 year 1 10,000 immediately None Programming 45,000 immediately 35,000 year 1 45,000 immediately 30,000 year 1 None Operations 50,000 1-10 80,000 years 1-10 150,000 years 1-10 support 30,000 1-10 40,000 years 1-10 none If each system is expected to have a 10-year life, 1. calculate the net present value for each system if the cost of capital is 8%. 2. Specify which system should be selected and whyA company invests $6,250 at the beginning ofa seven-year project. At the end of every year forthe first five years, the project generates $1,550. Atthe end of the sixth year, the project generates nomoney. At the end of the seventh year, the project isterminated. How much must the project generate atthe end of the seventh year to realize 14% return onthe initial investment?
- .ull Globe ? © 82% 8:21 AM Compoulations, aliswtI 5 WIII NE ITva mu. Make sure to put your name on the left side corner of your excel file. 61-70. Compute for AP and MP INPUT ТР MP (5PTS) АP (5PTS) 1 8. 20 3 37 4 57 72 6 80 7 85 8 88 86 10 82 1 Add file A docs.google.comProblem Solving. Solve the following problems completely. 4. Atty. Gacayan invested P280, 000 which will be used in a project that will produce auniform annual revenue of P180,000 for 5 years and then have a salvage value of 16% ofthe investment. Out-of-pocket costs for operation and maintenance will be P80,000 peryear. Taxes and insurance will be 3% of the first cost per year. Atty Gacayan expectscapital to earn not less than 30% before income taxes. Determine if the investment is goodand Calculate the following:a. Calculate using Rate of Return Method.b. Payback period of the investment.A mechanical device will cost $20,000 when purchased. Maintenance will cost $1,000 per year. The device will generate revenues of $5,000 per year for 5 years. The salvage value is $7000. What is the total cash flow in Year 3? O a. $4,000 O b. $1,000 C. $6,000 d. $5,000 Type here to search
- A coupon bond has the following characteristics: Purchase Price%3D 9800$ Annual Bond Rate= 796 Maturity= 2 years Face Value= 10000$ Period of Payment3 Semi-annual What will the final earnings related to the acquisition of this coupon bond? A. 300$ B. 1600$ C. 11200$ D. 14000$Kiwidale Dairy is considering purchasing a new ice-cream maker. Two models, Smoothie and Creamy, are available and their information is given below. (perform all calculation using 5 significant figures, and give your final answer to 1 decimal place). (a) What is Kiwidale's MARR that makes the two alternatives equivalent? Use a present worth comparison. Smoothie 17,000 Creamy 40,000 12 years 12,000 3,920 5,400 First Cost Service Life Annual profit Annual operating cost Salvage value A MARR which makes the two alternatives equivalent in term of PW is 12 years 4,800 1,200 2,450Capital investment Annual 0&M costs Electricity sales Decommissioning 50MW onshore €40k per 2MW ЄЗM for 5-10 €c wind farm per kWh €65M machine • Assume wind farm operates for 20 years • 110GWH @ 7.5 €c/kWh gives 8.2M€ annual income • 25×2MW wind turbines gives annual expenditure 1M€ • Discount rate = 8% Find net present value for the wind farm? Find LCOE for the wind farm?
- Full explain all question 1.Question A maintenance contract is $5,000 per year for 10 years. Assuming 9% annual interest, calculate the present value of this contract. Choose the closest answer. 2. Questions A purchase of a new machine is being evaluated. If we assume 12% annual interest, what is the Equivalent Uniform Annual Cost? Choose the nearest answer. Initial Cost $30,000 Annual Maintenance $1,500 Salvage Value $5,000 Life 6 years20. A proposed project will cost $1,400 five (5) years from today. Beginning at the end of year six, $500 in annual benefits will be received, continuing until the end of year nine. What is the project’s present (year 0) worth at MARR = 10%? A. $129.63 B. $147.24 C. $114.87 D. $106.58How much money would have to be placed in a sinking fund each year toreplace machine B at the end of 25 years if the fund yields 10% annualcompound interest and if the first cost of the machine is assumed toincrease at a 6% annual compound rate? (Assume the salvage value doesnot change.) Group of answer choices A. $3,600 B. $4,110 C. $2,400 D. $7,000