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- 1. A web server earns you $25,000 per hour. The likelihood that the web server will fail at least once in a year is estimated as 25%. Server recovery time is 3 hours. The cost of recovery is $5000. Calculate ALE 2. The server is worth $ 32,000, its exposure factor to DoS attacks is 0.25. Likelihood of such incident happening once a year in the industry is estimated as 30%. What is the value of ALE?Use Table 11-2 to solve the problem. The requirement for computer server capacity at a particular company is expected to increase at a rate of 15% per year for the next 5 years. If the server capacity is expected to be 1,300 gigabytes in 5 years, how many gigabytes of capacity are there today? Round to the nearest whole gigabyte. GB Need Help? Read It 5:05 PMProblem: An assembly operation at a software company now requires $100,000 per year in labor costs. A robot can be purchased and installed to automate this operation. The robot will cost $200,000. Maintenance and operation expenses of the robot are estimated to be $64,000 per year for the first 2 years and $10,000 thereafter. Replacement of minimal parts will cost $5000 every 3 years. Invested capital must earn at least 12% per year. What is the capitalized cost? (Draw cash flow diagram and upload a complete solution)
- Company x uses machines to manufacture x. One machine costs $142,000 and lasts about 5 years before it needs replaced. The operating cost per machine is $7,000 a year. What is the equivalent annual cost of one machine if the required rate of return is 11%?Jackson amp; Sons uses packing machines to prepare its products for shipping. One machine costs $178,000 and lasts about 5 years before it needs replaced. The operating cost per machine is $16,000 a year. What is the equivalent annual cost of one machine if the required rate of return is 12 percent? Select one: O O O O O a. $81,006.15 b. $65,378.93 c. $54,224.08 d. $79,004.12 e. $38,556.67The price of computers has been dropping steadily for the past ten years. If a desktop PC cost $6,700 ten years ago, and the same computing power cost $2,100 three years ago, find the rate of decrease per year. (Assume a straight-line model. Round your answer to the nearest cent.) $ per year Need Help? Read It Watch It Submit Answer
- We project unit sales for a new household-use laser-guided cockroach search and destroy system as follows: Year 12345 Unit Sales 101,000 113,000 136,000 142,000 95,000 The new system will be priced to sell at $475 each. The cockroach eradicator project will require $2,200,000 in net working capital to start, and total net working capital will rise to 15% of the change in sales. The variable cost per unit is $345, and total fixed costs are $2,500,000 per year. The equipment necessary to begin production will cost a total of $22 million. This equipment is mostly industrial machinery and thus qualifies for CCA at a rate of 20%. In five years, this equipment will actually be worth about 20% of its cost. The relevant tax rate is 35%, and the required return is 17%. Based on these preliminary estimates, what is the NPV of the project? (Enter the answer in dollars. Do not round your intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV AYou own a small machine shop. You would like to save $340, 000 to buy new equipment six years from now. The plan is to set aside an equal amount of money each quarter (every three months). How much should the firm save each quarter to achieve this goal if you can earn a 5.8% return? A. $10, 765.26 B. $8,396.17 C. $11, 945.79 D. $10,768.26 E $11,495.79You have just been offered a contract worth $ 1.15 million per year for 7 years. However, to take the contract, you will need to purchase some new equipment. Your discount rate for this project is 12.4%. You are still negotiating the purchase price of the equipment. What is the most you can pay for the equipment and still have a positive NPV? Question content area bottom Part 1 The most you can pay for the equipment and achieve the 12.4% annual return is $ enter your response here million. Round to two decimal places.)
- Exercise #5: A digital printer costs $12,000. It can generate production savings of $4,000 for 5 years. If you wait to buy one year, next year's model will cost $11,500 and will generate production savings of $4,500 per year for 5 years. The cost of capital is 12%. Should you buy now or wait? NPV Buy = $ …...... [15)]….... NPV Wait = $............[16].…....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 average investment is _______________. Question 15 options: 25.0% none of the options 42.5% 50.0% 30.0%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?