Homework Answers
Ans: P = 39,000{1 - [(1 + 0.07)5 / (1 + 0.10)5]} / (0.10 - 0.07)
Explanation:
The Present Value formula is
P = A{1 - [(1 + g)n / (1 + i)n]} / (i - g)
P = 39,000{1 - [(1 + 0.07)5 / (1 + 0.10)5]} / (0.10 - 0.07)
Thus, option [d] is correct answer.
Add Answer to:
4.69 The cost for increasing the production pacity in a certain manufacturing facilit is expected to...
A manufacturing company expects sales of $50,000 in quarter one, increasing by $3,000 per quarter through...
A manufacturing company expects sales of $50,000 in quarter one, increasing by $3,000 per quarter through year 3. Calculate the present worth of the sales through a 3-year period at an interest rate of 10% per year compounded monthly
4. The total manufacturing cost of a certain item is expected to decrease because of increased...
4. The total manufacturing cost of a certain item is expected to decrease because of increased productivity, as shown in the table. Determine the equivalent annual cost at an interest rate of 8% per year. [15 marks] Year 3 4 8 2 6 Cost 175 170 165 195 185 200 190 180
Larson Manufacturing is considering purchasing a new injection-molding machine for $270,000 to expand its production capacity....
Larson Manufacturing is considering purchasing a new injection-molding machine for $270,000 to expand its production capacity. It will cost an additional $20,000 to do the site preparation. With the new injection-molding machine installed, Larson Manufacturing expects to increase its revenue by $87,000 per year. The machine will be used for six years, with an expected salvage value of $75,000. At an interest rate of 10%, would the purchase of the injection-molding machine be justified? The present worth of the project...
Larson Manufacturing is considering purchasing a new injection-molding machine for $210,000 to expand its production capacity....
Larson Manufacturing is considering purchasing a new injection-molding machine for $210,000 to expand its production capacity. It will cost an additional $15,000 to do the site preparation. With the new injection-molding machine installed, Larson Manufacturing expects to increase its revenue by $100,000 per year. The machine will be used for four years, with an expected salvage value of $78,000. At an interest rate of 8%, would the purchase of the injection-molding machine be justified? The present worth of the project...
Your firm is thinking about investing $200,000 in the overhaul of a manufacturing cell in a...
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 $10,000 in year one and will increase by $5,000 per year until the end of the cell's five-year life. Salvage recovery at the end of year five is estimated to be $9,000. What is the annual equivalent worth of the...
Find the present worth of $1,000 in year 5 and amounts increasing by 7% per year...
Find the present worth of $1,000 in year 5 and amounts increasing by 7% per year through year 9. Use an interest rate of 12% per year. i = 12% 4 P = ??? A = $1000 PT = $ - 2594.88 7% Increase/yr 13
Nippon Steel’s expenses for heating and cooling a large manufacturing facility are expected to increase according...
Nippon Steel’s expenses for heating and cooling a large manufacturing facility are expected to increase according to an arithmetic gradient beginning in year 2. If the cost is $550,000 this year (year 0) and will be $550,000 again in year 1, but then it is estimated to increase by $58,000 each year through year 12, what is the equivalent annual worth in years 1 to 12 of these energy costs at an interest rate of 14% per year? The equivalent...
Nippon Steel's expenses for heating and cooling a large manufacturing facility are expected to increase according...
Nippon Steel's expenses for heating and cooling a large manufacturing facility are expected to increase according to an arithmetic gradient beginning in year 2. If the cost is $550,000 this year (year 0) and will be $550,000 again in year 1, but then it is estimated to increase by $55,000 each year through year 12, what is the equivalent annual worth in years 1 to 12 of these energy costs at an interest rate of 9% per year? : The...
Sunlight Company needs a machine for its manufacturing process. The cost of the new machine is...
Sunlight Company needs a machine for its manufacturing process. The cost of the new machine is $80,700. The expected useful life of the machine is 8 years. At the end of 8-year period, the machine would have no salvage value. After installation, the machine would increase cash inflows by $30,000 per year. Sunlight is interested to know the net present value of the machine to accept or reject this investment. The minimum required MARR of the company is 16% on...
3. Next month's production at a manufacturing company will use a certain solvent for part of...
3. Next month's production at a manufacturing company will use a certain solvent for part of its production process. Assume that there is an ordering cost of $1,500 incurred whenever an order for the solvent is placed and the solvent costs $50 per liter. Due to short product life cycle, unused solvent cannot be used in following months. There will be a $10 disposal charge for each liter of solvent left over at the end of the month. If there...
A manufacturing company expects sales of $50,000 in quarter one, increasing by $3,000 per quarter through year 3. Calculate the present worth of the sales through a 3-year period at an interest rate of 10% per year compounded monthly
4. The total manufacturing cost of a certain item is expected to decrease because of increased productivity, as shown in the table. Determine the equivalent annual cost at an interest rate of 8% per year. [15 marks] Year 3 4 8 2 6 Cost 175 170 165 195 185 200 190 180
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 $10,000 in year one and will increase by $5,000 per year until the end of the cell's five-year life. Salvage recovery at the end of year five is estimated to be $9,000. What is the annual equivalent worth of the...
Find the present worth of $1,000 in year 5 and amounts increasing by 7% per year through year 9. Use an interest rate of 12% per year. i = 12% 4 P = ??? A = $1000 PT = $ - 2594.88 7% Increase/yr 13
Nippon Steel's expenses for heating and cooling a large manufacturing facility are expected to increase according to an arithmetic gradient beginning in year 2. If the cost is $550,000 this year (year 0) and will be $550,000 again in year 1, but then it is estimated to increase by $55,000 each year through year 12, what is the equivalent annual worth in years 1 to 12 of these energy costs at an interest rate of 9% per year? : The...
3. Next month's production at a manufacturing company will use a certain solvent for part of its production process. Assume that there is an ordering cost of $1,500 incurred whenever an order for the solvent is placed and the solvent costs $50 per liter. Due to short product life cycle, unused solvent cannot be used in following months. There will be a $10 disposal charge for each liter of solvent left over at the end of the month. If there...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago