Question

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 Machine Y Market Value, $ ? 83,000 Annual Cost, $ per Year −57,500 −40,000 for year 1,increasing by 2000 per year thereafter. Salvage Value 13,500 23,000 Life, Years 3 5 The replacement value is $ .

Math   Advanced-Math   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
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 $ ________.
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, $ ? 89,000 Annual Cost, $ per Year −59,000 −40,000 for year 1,increasing by 2000 per year thereafter. Salvage Value 18,500 23,000 Life, Years 3 5 The replacement value is $ ...........?
A certain machine has the estimates shown below: Machine First Cost ($) -20,000 Annual operating cost...
A certain machine has the estimates shown below: Machine First Cost ($) -20,000 Annual operating cost ($/ year) -10,000 Salvage value ($) 4,000 Life (years) 10 At an interest rate of 10% per year, the annual worth of this machine is equal to: Question 10 options: -$13,004 -$13,254 -$12,658 -$15,270
5.30 A company needs to purchase a new machine to maintain its level of production. The...
5.30 A company needs to purchase a new machine to maintain its level of production. The company is considering three different machines. The costs, savings and service life related to each machine are listed in the table below. Machine A Machine B Machine C First Cost $37,500 $31,000 $35,000 Annual Savings $13,500 $12,000 $12,750 Annual Maintenance $3,000 the first year and increasing by $600 every year thereafter $2,500 $2,000 Salvage Value $5,000 $11,000 $13,000 Service Life 6 years 3 years...
5. Machine X costs $10K with annual maintenance costs of $500/year and no salvage value at...
5. Machine X costs $10K with annual maintenance costs of $500/year and no salvage value at end of 4 year useful life. Machine Y costs $20K with no maintenance cost the first year, $100 the 2nd year, increasing by $100 each year. Salvage value of $5K at end of 12 year useful life. Determine the present value (cost) of each system Assume 8% interest
Machine X costs $20,000 with annual maintenance costs of $700/year and a salvage value of $3000...
Machine X costs $20,000 with annual maintenance costs of $700/year and a salvage value of $3000 at the end of a 5 year useful life. Machine Y costs $30,000 with $500 maintenance cost the first year, $575 the 2nd year, increasing by $75 each following year. There is a salvage value of $8000 at the end of a 10-year useful life. Assume these machines will be needed for at least 20 years. Assume that the costs will not change during...
Machine X has an initial cost of $12,000 and annual maintenance of $700 per year. It...
Machine X has an initial cost of $12,000 and annual maintenance of $700 per year. It has a useful life of four years and no salvage value at the end of that time. Machine Y costs $22,000 initially and has no maintenance costs during the first year. Maintenance is $200 at the end of the second year and increases by $200 per year thereafter. Machine Y has a useful life of eight years and an anticipated salvage value of $5,000...
(Requesting fully solution please) A bottling company needs a new capping machine for their product line....
(Requesting fully solution please) A bottling company needs a new capping machine for their product line. They have two choices for filling this need. Revenues from the line are $20 000 per year. The company uses a MARR of 10% and the “do nothing” option is not viable. The choices are:  Buy a used machine for $36 000 which will have a $0 salvage value at the end of 6 years. Maintenance costs are $3000 in the first year,...
You work for Midstates Solar Power. A manager asked you to determine which of the following...
You work for Midstates Solar Power. A manager asked you to determine which of the following two machines will have the lower (a) capital recovery and (b) equivalent annual total cost. Machine Semi2 has a first cost of $100,000 and an operating cost of $21,000 in year 1, increasing by $500 per year through year 5, after which time it will have a salvage value of $13,000. Machine Auto1 has a first cost of $65,000 and an operating cost of...
The machines shown below are under consideration for an improvement to an automated candy bar wrapping...
The machines shown below are under consideration for an improvement to an automated candy bar wrapping process. Machine C Machine D First cost, $ –40,000 –75,000 Annual cost, $/year –15,000 –10,000 Salvage value, $ 12,000 25,000 Life, years 3 6 (Source: Blank and Tarquin) Based on the data provided and using an interest rate of 5% per year, the Capital Recovery “CR”of Machine D is closest to: (All the alternatives presented below were calculated using compound interest factor tables including...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT