With the estimates shown below, Sarah needs to determine the trade-in (replacement) value of machine X...
With the estimates shown below, Sarah needs to determine the trade-in (replacement) value of machine X that will render its AW equal to that of machine Y at an interest rate of 9% per year. Determine the replacement value.
| Machine X | Machine Y | |
| Market Value, $ | ? | 94,000 |
| Annual Cost, $ per Year | −57,500 | −40,000 for year 1,increasing by 2000 per year thereafter. |
| Salvage Value | 19,500 | 21,000 |
| Life, Years | 3 | 5 |
The replacement value is______ $ .
Homework Answers
AW of machine Y = -94000 * (A/P, 9%,5) - 40000 - 2000 * (A/G,
9%,5) + 21000 * (A/F,9%,5)
= -94000 * 0.257092 - 40000 - 2000 * 1.828197 + 21000 *
0.167092
= -64314.14
Let trade in value be P, then
AW of machine X = - P *(A/P, 9%,3) - 57500 + 19500 * (A/F, 9%,3)
= - P * 0.395055 - 57500 + 19500 * 0.305055
= - P * 0.395055 - 51551.43
As per given condition
- P * 0.395055 - 51551.43 = -64314.14
P = (64314.14-51551.43)/0.395055 = 32306.16
Add Answer to:
With the estimates shown below, Sarah needs to determine the
trade-in (replacement) value of machine X...
With the estimates shown below, Sarah needs to determine the trade-in (replacement) value of machine X...
With the estimates shown below, Sarah needs to determine the trade-in (replacement) value of machine X that will render its AW equal to that of machine Y at an interest rate of 9% per year. Determine the replacement value. Machine X Machine Y Market Value, $ ? 92,000 Annual Cost, $ per Year −55,500 −40,000 for year 1,increasing by 2000 per year thereafter. Salvage Value 15,500 17,000 Life, Years 3 5 The replacement value is $ ________.
With the estimates shown below, Sarah needs to determine the trade-in (replacement) value of machine X...
With the estimates shown below, Sarah needs to determine the trade-in (replacement) value of machine X that will render its AW equal to that of machine Y at an interest rate of 11% per year. Determine the replacement value. Machine X Machine Y Market Value, $ ? 82,000 Annual Cost, $ per Year −58,000 −40,000 for year 1,increasing by 2000 per year thereafter. Salvage Value 10,500 23,000 Life, Years 3 5 The replacement value is $_____________ .
With the estimates shown below, Sarah needs to determine the trade-in (replacement) value of machine X...
With the estimates shown below, Sarah needs to determine the trade-in (replacement) value of machine X that will render its AW equal to that of machine Y at an interest rate of 14% per year. Determine the replacement value. Machine X Market Value, $ 2 Annual Cost, $ per Year -60,500 Machine Y 92,000 - 40,000 for year 1.increasing by 2000 per year thereafter. 16,000 5 Salvage Value Life, Years 21,500 3 The replacement value is $
A company needs to choose between two replacement alternatives: Machine A and B. Using the corporate...
A company needs to choose between two replacement alternatives: Machine A and B. Using the corporate MARR of 15% per year and the table below, answer the following questions. Machine A Machine B First cost, $ -62,000 -77,000 Annual operating cost, $/year -15,000 -21,000 Salvage value, $ 8,000 10,000 Life, years What is the annual worth of Machine B? Choose the closest value. a) $-80,000 b) $-100,000 c) $-40,000 d) $-25,000
Question 10 (5 points) A company needs to choose between two replacement alternatives: Machine A and...
Question 10 (5 points) A company needs to choose between two replacement alternatives: Machine A and B. Using the corporate MARR of 15% per year and the table below, answer the following questions. Machine A Machine B First cost, $ -62,000 -77,000 Annual operating cost, $/year -15,000 -21,000 Salvage value, $ 8,000 10,000 Life, years What is the length of the analysis, using LCM (least common multiples)? Enter integer value, 1, 2...
AW value? An injection molding system has a first cost of $185,000 and an annual operating...
AW value?
An injection molding system has a first cost of $185,000 and an annual operating cost of $79.000 in years and increasing by $3,000 per year thereafter. The salvage value of the system is 25% of the first cost regardless of when the system is retired within its maximum useful life of 5 years. Using a MARR of 14% per year, determine the ESL and the respective AW value of the system The ESL is 5 year(s) and AW...
Calculate the present worth of all costs for a newly acquired machine with an initial cost...
Calculate the present worth of all costs for a newly acquired machine with an initial cost of $40,000, no trade-in value, a life of 12 years, and an annual operating cost of $17,000 for the first 5 years, increasing by 10% per year thereafter. Use an interest rate of 10% per year. The present worth of all costs for a newly acquired machine is determined to be
Two machines are under consideration and only one can be bought. MARR is 10%. Use the...
Two machines are under consideration and only one can be bought. MARR is 10%. Use the following information and find out which option should be purchased. Use an annual worth comparison. Initial cost Annual savings Annual maintenance cost Life Salvage value Machine A $280,000 $40,000 $2000 for year 1, increasing by 5% each year thereafter 15 years $19,250 Machine B $185,000 $32,000 $1000 for year 1, increasing by $350 each year thereafter 10 years $14,800 3(a) Advertisements suggest that a...
Question 10 (1 point) v. Saved A certain machine has the estimates shown below: Machine First...
Question 10 (1 point) v. Saved A certain machine has the estimates shown below: Machine First Cost ($) Annual operating cost ($/ year) Salvage value ($) Life (years) -10,000 -5,000 2,000 10 At an interest rate of 10% per year, the annual worth of the machine is equal to: INTER -$7,635 LES O-$6,329 FREE ALERIE MENTRE INPIRE 0 -$6,627 LETTER RELATED IR 0-$6,502 FERIE EE
A machine purchased 3 years ago for $140,000 is now too slow to satisfy the demand...
A machine purchased 3 years ago for $140,000 is now too slow to satisfy the demand of the customers. It can be upgraded now for $82,000 or sold to a smaller company internationally for $44,000. The upgraded machine will have an annual operating cost of $80,000 per year and a $30,000 salvage value in 3 years. If upgraded, the presently owned machine will be retained for only 3 more years, then replaced with a machine to be used in the...
With the estimates shown below, Sarah needs to determine the trade-in (replacement) value of machine X that will render its AW equal to that of machine Y at an interest rate of 14% per year. Determine the replacement value. Machine X Market Value, $ 2 Annual Cost, $ per Year -60,500 Machine Y 92,000 - 40,000 for year 1.increasing by 2000 per year thereafter. 16,000 5 Salvage Value Life, Years 21,500 3 The replacement value is $
A company needs to choose between two replacement alternatives: Machine A and B. Using the corporate MARR of 15% per year and the table below, answer the following questions. Machine A Machine B First cost, $ -62,000 -77,000 Annual operating cost, $/year -15,000 -21,000 Salvage value, $ 8,000 10,000 Life, years What is the annual worth of Machine B? Choose the closest value. a) $-80,000 b) $-100,000 c) $-40,000 d) $-25,000
Question 10 (5 points) A company needs to choose between two replacement alternatives: Machine A and B. Using the corporate MARR of 15% per year and the table below, answer the following questions. Machine A Machine B First cost, $ -62,000 -77,000 Annual operating cost, $/year -15,000 -21,000 Salvage value, $ 8,000 10,000 Life, years What is the length of the analysis, using LCM (least common multiples)? Enter integer value, 1, 2...
AW value?
An injection molding system has a first cost of $185,000 and an annual operating cost of $79.000 in years and increasing by $3,000 per year thereafter. The salvage value of the system is 25% of the first cost regardless of when the system is retired within its maximum useful life of 5 years. Using a MARR of 14% per year, determine the ESL and the respective AW value of the system The ESL is 5 year(s) and AW...
Calculate the present worth of all costs for a newly acquired machine with an initial cost of $40,000, no trade-in value, a life of 12 years, and an annual operating cost of $17,000 for the first 5 years, increasing by 10% per year thereafter. Use an interest rate of 10% per year. The present worth of all costs for a newly acquired machine is determined to be
Two machines are under consideration and only one can be bought. MARR is 10%. Use the following information and find out which option should be purchased. Use an annual worth comparison. Initial cost Annual savings Annual maintenance cost Life Salvage value Machine A $280,000 $40,000 $2000 for year 1, increasing by 5% each year thereafter 15 years $19,250 Machine B $185,000 $32,000 $1000 for year 1, increasing by $350 each year thereafter 10 years $14,800 3(a) Advertisements suggest that a...
Question 10 (1 point) v. Saved A certain machine has the estimates shown below: Machine First Cost ($) Annual operating cost ($/ year) Salvage value ($) Life (years) -10,000 -5,000 2,000 10 At an interest rate of 10% per year, the annual worth of the machine is equal to: INTER -$7,635 LES O-$6,329 FREE ALERIE MENTRE INPIRE 0 -$6,627 LETTER RELATED IR 0-$6,502 FERIE EE
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