Finance A company is considering buying a machine that would give a net cost savings of $85,000 per year for 10 years. The cost of the machine is $350,000. The company’s weighted average cost of capital is 12%. What is the profitability index for the machine? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Do not provide Excel Screet shot rather use tool table Answer completely.
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Finance
A company is considering buying a machine that would give a net cost savings of $85,000 per year for 10 years. The cost of the machine is $350,000. The company’s weighted average cost of capital is 12%. What is the profitability index for the machine?
Note:-
- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
- Do not provide Excel Screet shot rather use tool table
- Answer completely.
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- If can't do all with explanation please skip iwill definitely like if you follow this or skip pls You are considering purchasing a new database system for your company. The system will cost $80,000, and it will cost another $15,000 for equipment and training. The system is expected to be sold after three years, when you plan to outsource database activities. You hope that you can sell your system to a competitor for $12,000. You expect to save $22,000 per year in operating costs. Your corporate cost of capital is 10%. What is the project’s net investment outlay at Year 0? What are the projects’ operating cash flows in Years 1, 2, and 3? What is the terminal cash flow at the end of Year 3? If the project has average risk, is it expected to be profitable? On what basis did you draw this conclusion? .Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and website construction is estimated to be $160,000. Variable processing costs are estimated to be $6.00 per book. The publisher plans to sell single-user access to the book for $46. a. Build a spreadsheet model to calculate the profit/loss for a given demand. For example, what profit can be anticipated with a demand of 3500 copies? b. Use a data table to very demand from 1000 to 6000 in increments of 200 to assess the sensitivity of profit to demand. c. Use Goal Seek to determine the access price per copy that the publisher must charge to break even with the demand of 3500 copies. Before you move on to Problem 2, make sure you save your workbook with this value displayed or else you will not receive credit.Shonda & Shonda is a company that does land surveys and engineering consulting. They have an opportunity to purchase new computer equipment that will allow them to render their drawings and surveys much more quickly. The new equipment will cost them an additional $1.200 per month, but they will be able to increase their sales by 10% per year. Their current annual cost and break-even figures are as follows: A. What will be the impact on the break-even point if Shonda & Shonda purchases the new computer? B. What will be the impact on net operating income if Shonda & Shonda purchases the new computer? C. What would be your recommendation to Shonda & Shonda regarding this purchase?
- The manager of an automobile dealership is considering a new bonus plan designed to increase sales volume. Currently, the mean sales volume is 14 automobiles per month. The manager wants to conduct a research study to see whether the new bonus plan increases sales volume. To collect data on the plan, a sample of sales personnel will be allowed to sell under the new bonus plan for a one-month period. a. Develop the null and alternative hypotheses most appropriate for this situation. b. Comment on the conclusion when H0 cannot be rejected. c. Comment on the conclusion when H0 can be rejected.Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and web-site construction is estimated to be $175,000. Variable processing costs are estimated to be $8 per book. The publisher plans to sell single-user access to the book for $54. (a) Build a spreadsheet model in Excel to calculate the profit/loss for a given demand. What profit can be anticipated with a demand of 3,300 copies? For subtractive or negative numbers use a minus sign. -23,200 (b) Use a data table to vary demand from 1,000 to 6,000 in increments of 200 to test the sensitivity of profit to demand. Breakeven occurs where profit goes from a negative to a positive value, that is, breakeven is where total revenue = total cost yielding a profit of zero. In which interval of demand does breakeven occur? (i) Breakeven appears in the interval of 3,400 to 3,600 copies. (ii) Breakeven appears in the…SnowDelight operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season. (Click the icon to view the information.) Read the requirements. C Requirement 1. If SnowDelight cannot reduce its costs, what profit will it earn? State your answer in dollars and as a percent of assets. Will investors be happy with the profit level? Complete the following table to calculate SnowDelight's projected income. Revenue at market price Less: Total costs 63075000 6075000 8.3 Operating income (Round the percentage to the nearest hundredth percent, X.XX%.) %. SnowDelight's projected operating income (profit) as a percent of assets amounts to Will investors be happy with this profit level? More info *** O a 6 9 K tab CAK je Q A W S tt 3 E D 4 C R % TI F 5 T G & 7 H U 8 J O
- Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cast of manuscript preparation, textbook design, and web-site construction is estimated to be $155,000. Variable processing costs are estimated to be $6 per book. The publisher plans to sell single-user access to the book for $47. (a) Build a spreadsheet model in Excel to calculate the profit/loss for a given demand. What profit can be anticipated with a demand of 3,200 copies? For subtractive or negative numbers use a minus sign. -23800 (b) Use a data table to vary demand from 1,000 to 6,000 in increments of 200 to test the sensitivity of profit to demand. Breakeven occurs where profit goes from a negative to a positive value, that is, breakeven is where total revenue - total cost yielding a profit of zero. In which interval of demand does breakeven occur? (1) Breakeven appears in the interval of 3,200 to 3,400 copies. (1) Breakeven appears in the interval…SnowDelight operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season. (Click the icon to view the information.) Read the requirements. Requirement 1. If SnowDelight cannot reduce its costs, what profit will it earn? State your answer in dollars and as a percent of assets. Will investors be happy with the profit level? Complete the following table to calculate SnowDelight's projected income Revenue at market price Less: Total costs Operating income Requirements 1 If SnowDelight cannot reduce its costs, what profit will it earn? State your answer in dollars and as a percent of assets. Will investors be happy with the profit level? 2 Assume SnowDelight has found ways to cut its fixed costs to $36.000,000 What is its new target variable cost per skier/snowboarder?I know this is a lot of information but this is what I would need to solve the problem. Any help would be appreciated! Your company, VR Co., has been approached to bid on a contract to sell 20,000 voice recognition (VR) computer keyboards a year for four years. Due to technological improvements, beyond that time they will be outdated and no sales will be possible. The equipment necessary for the production will cost $4 million and will be depreciated on a straight-line basis to a zero salvage value. Production will require an investment in net working capital of $80,000 initially and to be returned at the end of the project, and the equipment can be sold for $200,000 at the end of production. Fixed costs are $700,000 per year, and variable costs are $48 per unit. In addition to the contract, you feel your company can sell 4,000, 12,000, 14,000, and 7,000 additional units to companies in other countries over the next four years, respectively, at a price of $145. This price is fixed.…
- Please don't provide answer in image format thank you. Minden Co. is considering buying new computer software that will assist customers in their product choices. The cost is $50,000. The benefit will be an additional cash inflow of $25,000 for four years, at which point the software will need replacing with a more modern version. The return on initial investment is _______________. Question 14 options: none of the options 25.0% 15.0% 10.0% 12.5%Roadside Inc is fine-tuning a combination flashlight / WiFi hotspot. The new product would sell for $41.24. Variable cost of production would be $14.85 per unit. Setting up production would entail relevant fixed costs of $311,089. The board of directors, citing technical risk, insists that this project cannot go forward unless the new product would earn a return on sales of 18%. Calculate breakeven sales in DOLLARS, meeting the profit target. (Rounding: penny.)A company needs a CNC machine. One of four alternative CNC machines will be selected. Machines have no salvage value. Minimum attractive rate of return is %10. The costs of the machines are given in the table below. And please make profitability by using equivalent value methods such as present value, annual equivalent cost and future value, and return rate methods such as internal rate of return and external rate of return. Finally, would you compare all the data? The problem has no input values, only the values in the photo I sent you.