Question

A company buys a machine for $25,000. The annual cost of
maintaining the machine is $500 per year for the first 5 years (End
of Year 1 thru End of Year 5) and then it increases to $750 for the
next 5 years (Year 6 thru Year 10). Consider all cash flows to be
end of year cash flows. For an interest rate of 8% per year
compounded yearly, find the annual maintenance cost of the machine
and the present worth of the total cost.

PLEASE HELP. SOLVE BY HAND

Answer #1

What is the annual worth of a machine with an initial cost of
$25,000, an annual cost of $8,000 per year, a salvage value of +
$7,000, a useful life of 8 years, and a financing cost rate of 10%
per year?

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...

A
company wants to buy one of two machines: machine X or machine Y.
The present worth of machine X over a life span of 3 years is
$2,200 at an interest rate of 10% per year compounded annually
whereas the present worth of machine Y over a life span of 6 years
is $ 3,500 at the same interest rate. Based on the present worth
criterion, which machine should the company pick?
PLEASE HELP ASAP. dont use excel. solve...

Q1- The cost of maintaining a piece of
construction equipment increases at a constant rate of AED 80 per
month over its 16 year life. This year’s cost (end of year 1) is
expected to be AED 7500. Determine
the cost at the end of year 13
the Present Worth of the maintenance costs at an interest rate
of 9%.

A machine costs $750,000 to purchase and will produce $250,000
per year revenue. Annual operating and maintenance cost is $70,000.
The machine will have to be upgraded in year 4 at a cost of
$150,000. The company plans to use the machine for 8 years and then
sell it for scrap for which it expects to receive $30,000. The
company MARR interest rate is 10%. Compute the net present worth to
determine whether or not the machine should be purchased?...

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

A company has a need for a snow removal machine. The machine can
be purchased for the cost of $25,000. The machine is expected to
have a life of 6 years with no salvage value. The annual operating
cost amounts to $5,000. Alternatively, the machine can be rented at
the cost of $400 per day payable at the end of the year. (a)
Determine Net Present Worth for buying option. Use an interest rate
of 10% per year

The Sweetwater Candy Company would like to buy a new machine
that would automatically “dip” chocolates. The dipping operation is
currently done largely by hand. The machine the company is
considering costs $230,000. The manufacturer estimates that the
machine would be usable for five years but would require the
replacement of several key parts at the end of the third year.
These parts would cost $10,400, including installation. After five
years, the machine could be sold for $7,500. The company...

A company is analyzing a pressing machine to acquire. The
purchasing price of this machine is $300,000. This machine will be
used towards pressing 1,000 products every 6 months, which each
will be sold for $50. Its operating and maintenance cost will be
$7000 in the first semi-annual and it increases by $500 every six
months (semi-annual) after that till the end of its useful life,
which year 7. The salvage value at the end of year 7 will be...

Using Microsoft Excel:
1. A machine will cost $50,000 to purchase. Annual operating
cost will be $3,000. This machine will save $15,000 per year in
labor costs. The salvage value after 5 years will be $10,000.
Calculate the machine’s equivalent uniform annual worth (EUAW) for
the interest rate of 8%.
2. The maintenance cost for a generator have been recorded over
its five year life. Calculate EUAC at 8 percent per year.
Year
1
2
3
4
5
Cost
$1100...

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