24 Calculate the perpetual equivalent annual cost (years 1 through infinity) of $5 million in year 0, $2 million in year 10, and $100,000 in years 11 through infinity. Use an interest rate of 10% per year.
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- earch 1 Zetterberg Builders is given two options for making payments on a brush hog. Find the value of X such that they would be indifferent between the two cash flow profiles if their TVOM is 11.5% per year compounded yearly. End of Year Series 1 Series 2 1 Q A 0 1 2 3 4 5 $250 $300 Value of X: $ @ 2 $350 $35X $400 $25X $0 $0 Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is 14. Click here to across the TVM Factor Table Calculator EG W D Bi + Alt $0 3 $0 F3 WE $15X $5X X F4 $ 4 C F5 % 5 B R T FG 6 Y F7 & 7 SD F G H F8 U . A 8 J A F9 1 ( 9 Z X CV B N M F10 K O ) - F11 0 L 3 Alt 11 27 P F12 : PrtSc { [ Ctrl Rain toni + 11 ? Ins5. Henry Mueller Supply Co. sells tamperproof, normally open thermostats (i.e., thermostat closes as temperature rises). Annual cash flows are shown in the table below. Determine the future worth of the net cash flows at an interest rate of 10% per year. Year 1 Income, $1000 200 Cost, $1000 90 2 200 90 3 200 90 4 200 90 5 200 90 6 200 90 7 200 90 8 200 90Calisto Launch Services is an independent space corporation and has been contracted to develop and launch one oftwo different satellites. Initial equipment will cost $750,000 for the first satellite and $850,000 for the second.Development will take 5 years at an expected cost of $150,000 per year for the first satellite; $120,000 per year forthe second. The same launch vehicle can be used for either satellite and will cost $275,000 at the time of the launch5 years from now. At the conclusion of the launch, the contracting company will pay Calisto $2,500,000 for eithersatellite.Calisto is also considering whether they should consider launching both satellites. Because Calisto would haveto upgrade its facilities to handle two concurrent projects, the initial costs would rise by $150,000 in addition to thefirst costs of each satellite. Calisto would need to hire additional engineers and workers, raising the yearly costs to atotal of $400,000. An additional compartment would be added to…
- An electronics firm is planning to manutacture a new handheid gaming device tor the preteen market The data have been estimated tor the product Assuming a negligible market (salvage) value tor the equipment at the end of tive years, determine the breakeven annual sales volume for this product. E Click the icon to view the data estimated for the product A Click the icon to view the interest and annuity table for discrete compounding when i= 15% per year. The breakeven annual sales volume is 5000 units. (Round to the nearest whole number) More Info Sales price $12.50 per unit Equipment cost Ovorhoad cost Operating and maintenance cost Production lime per 1,000 units Study period (planning horizon) $200,000 $50.000 per yoar $25 per operating hour 100 hours 5 years 15% per year MARRQ15. For the cash flows shown, determine the incremental cash flow between machines B and A (a) in year 0, (b) in year 3, and (c) in year 6. Machine First Cost, $ A B -13,000 -25,000 AOC, $ per Year -1,300-400 Life, Years Salvage Value, $ 5,000 6,000 3 6 a) The incremental cash flow between machines B and A in year 0 is $ . b) The incremental cash flow between machines B and A in year 3 is $. c) The incremental cash flow between machines B and A in year 6 is $ .Complete the following analysis of cost alternatives and select the preferred alternative. The study period is 10 years and the MARR = 10% per year. "Do Nothing" is not an option. A B $15,000 $16,100 240 290 1,000 1,250 -$41,731 - $45,131 Capital investment Annual costs Market value at EOY 10 FW (10%) Click the icon to view the interest and annuity table for discrete compounding when i = 10% per year. The FW of the alternative C is $. (Round to the nearest dollar.) Select the preferred alternative. Choose the correct answer below. OA. Alternative C OB. Alternative A OC. Alternative B O D. Alternative D D $17,900 110 1,950 ??? - $46,231 с $12,500 450 1,800
- 4. in Year Income, $1000 Cost, $1000 MJ Corp produces and sells a new model of photoxaltais. (PV). Annual cash flows are shown table below. Determine the future worth of the net cash flows at an interest of 10% per year. 8 per year. 1 200 90 2 200 90 3 200 90 4 200 90 5 200 90 6 Don't use excel and please don't upload answers that were already posted 200 90 7 200 90 200 Hide Transcribed Text 4. MJ Corp produces and sells a new model of photovaltaic (PV). Annual cash flows are shown in table below. Determine the future worth of the net cash flows at an interest of 10% 90QUESTION 2 For the given cash flow, if B= $3,400 , the future value, Fis closest to: F=? i= 12% 3 5 22 23 24 25 S500 S1000 $1500 B S10,500 Arithmatic Gradient $11,000Major overhaul expenses of $5,000 each are anticipated for a large piece of earthmoving equipment. The expenses will occur at EOY four and will continue every three years thereafter up to and including year 13. The interest rate is 12% per year. Solve, a. Draw a cash-flow diagram. b. What is the present equivalent of the overhaul expenses at time 0? c. What is the annual equivalent expense during only years 5–13?
- Maintenance cost for a small bridge with an expected 60-year life are estimated to be $1,000 each year for the first 5 years, followed by a $ 10,000 expenditure in the 15th year and a $ 10,000 expenditure in year thirty. At 10% interest rate, what is the equivalent uniform annual maintenance cost over the entire 60 - year period? Show solutionsMargaret 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 MARR is 5 percent, what is the payback period of this project? Ctrl) -A battery manufacturing plant has been ordered to cease discharging acidic waste liquids containing mercury into the city sewer system. As a result, the firm must now adjust the pH and remove the mercury from its waste liquids. Quotations from three firms are included in the following table of costs. If the installation will last 15 years and money is worth 12%, which equipment should be purchased? Bidder Installed Annual Cost Foxhill $70k Quicksilver $50k Almaden Operating Cost 5k 5k $90k 5k Annual Income from Mercury Recovery 6.5k 2.5k 7.8k Salvage Value 10k 0 10k