ncome from the mine is 100,000 and the life of the mine is 20 years. Find the price that an investor is willing to pay for the mine if he considers that money is worth 5% and if he is to accumulate a sinking fund at 6% in order to replace the capital he invested.
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The annual income from the mine is 100,000 and the life of the mine is 20 years. Find the price that an investor is willing to pay for the mine if he considers that money is worth 5% and if he is to accumulate a sinking fund at 6% in order to replace the capital he invested.
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- Find sales if value of output is $6400 million and change in stock is $1000 millionA small mining group is considering the purchase of a continuous mining machine. If the total value of all expenses expressed in year 0 (i.e. net present value) is $8,889,024, what is the equivalent cost of the machine expressed as 7 equal payments paid in years 1-7 (i.e. "net annual value"). Assume an interest rate of 14%. Express your answer as a positive value.A company is developing a new electronic product. It expects to spend $38 million on Research and Development and then another $6 million on Manufacturing Engineering. After completing all this, the company expects a cost of $15 per unit to manufacture and plans to build in a profit of $5 per unit into the price. The company needs to recover the cost of R&D plus Manufacturing Engineering over five years through sales of 4 million units over those five years. What will the company need to establish as the sales price for the unit?
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- A semiconductor chip maker purchased a small manufacturing process plant for $2,131,020. The money coming in from that purchase was determined to be $500,000 annually in before-tax cash flow during its 10-year use. The net cash flow after tax is $300,000. If the chip maker wants to realize a 10% return on its investment after tax, for how many more years should the plant operate? (hint, tables)Use a calculator for this exercise.Suppose you obtain a five-year lease for a Porsche and negotiate a selling price of $143,000. The annual interest rate is 8.4%, the residual value is $76,000, and you make a down payment of $7000. Find each of the following. (a) The net capitalized cost$ (b) The money factor (rounded to four decimal places)(c) The average monthly finance charge (rounded to the nearest cent)$ (d) The average monthly depreciation (rounded to the nearest cent)$ (e) The monthly lease payment (rounded to the nearest cent)$A construction company wants to set aside enough money today in an interest-bearing account in order to have $ 100,000 five years from now for the purchase of a replacement piece of equipment.
- An investment promises to pay you $5,000 per year forever with the first payment at time 1. If the interest rate is 4.07% per year, determine the maximum you would be willing to pay for this investment. Enter your answer rounded to 2 decimal places. Enter your response below. NumberRespond to the question with a concise and accurate answer, along with a clear explanation and step-by-step solution, or risk receiving a downvote. Modifying an assembly line has a first cost of $165,000 and its salvage value is $0. The firm’s interest rate is 10%. The savings shown in the table depend on whether the assembly line runs one, tow, or three shifts and on whether the product is made for 8 or 10 years. Calculate the expected present worth. Round to the nearest cent. Shifts/day Savings P(S) Useful Life P(L) 1 $27,500 25% 8 65% 2 $30,000 40% 10 35% 3 $32,500 35%Barbara Thompson is considering the purchase of a piece of business rental property containing stores and offices at a cost of $350,000. Barbara estimates that annual receipts from rentals will be $55,000 and that annual disbursements. other than income taxes, will be about $18,000. The property is expected to appreciate at the annual rate of 5%. Barbara expects to retain the property for 20 years once it is acquired. Then it will be depreciated on the basis of the 39-year real-property class (MACRS), assuming that the property would be placed in service on January 1. Barbara's marginal tax rate is 30%, and her MARR is 10%. What would be the minimum annual total of rental receipts that would make the investment break even?