Question

9) A company is considering expanding their production capabilities with a new machine that costs $37,000 and has a projected lifespan of 6 years. They estimate the increased production will provide a constant $6,000 per year of additional income. Money can earn 0.9% per year, compounded continuously. Should the company buy the machine?

(a) Yes, the present value of the machine is greater than the cost by

(b) No, the present value of the machine is less than the cost by

$ _____ over the life of the machine

11) The traffic flow rate (cars per hour) across an intersection
is r(t)=500+800t−270t^{2}, where tt is in hours, and t=0 is
6am. How many cars pass through the intersection between 6 am and 8
am?

Answer #1

if satisfied with the explanation, please rate it up..

A company is considering expanding their production capabilities
with a new machine that costs $43,000 and has a projected lifespan
of 8 years. They estimate the increased production will provide a
constant $6,000 per year of additional income. Money can earn 1.4%
per year, compounded continuously. Should the company buy the
machine?
Select an answer Yes, the present value of the machine is greater
than the cost by No, the present value of the machine is less than
the cost...

A company is considering expanding their production capabilities
with a new machine that costs $79,000 and has a projected lifespan
of 8 years. They estimate the increased production will provide a
constant $10,000 per year of additional income. Money can earn 1.2%
per year, compounded continuously. Should the company buy the
machine over the life of the machine
Select an answer: Yes, the present value of the machine is greater
than the cost by $_____________
No: the present value...

A company is considering expanding their production capabilities
with a new machine that costs $102,000 and has a projected lifespan
of 9 years. They estimate the increased production will provide a
constant $12,000 per year of additional income. Money can earn 0.6%
per year, compounded continuously. Should the company buy the
machine?
Select an answer Yes, the present value of the machine is greater
than the cost by $________ over the life of the
machine

A company is considering expanding their production capabilities
with a new machine that costs $67,000 and has a projected lifespan
of 9 years. They estimate the increased production will provide a
constant $8,000 per year of additional income. Money can earn 1.8%
per year, compounded continuously. Should the company buy the
machine? $ _____ over the life of the machine

A company is considering expanding their production capabilities
with a new machine that costs $43,000 and has a projected lifespan
of 7 years. They estimate the increased production will provide a
constant $7,000 per year of additional income. Money can earn 1.7%
per year, compounded continuously. Should the company buy the
machine?
$ over the life of the machine

Question 1)
A company is considering expanding their production capabilities
with a new machine that costs $47,000 and has a projected lifespan
of 10 years. They estimate the increased production will provide a
constant $5,000 per year of additional income. Money can earn 0.6%
per year, compounded continuously. Should the company buy the
machine?
Question 2)
Find the accumulated present value of an investment over a 6
year period if there is a continuous money flow of $5,000 per year...

The company "ABCD" is considering to make a new investment by
purchasing a new machine for the production of a new product. For
the new machine, "ABCD" must spend 6,000 euros, which will be sold
after six years. Each year, the machine has 200 euros operating
costs. The beneficial/useful life span of the machine is 6 years
and its residual (salvage) value is zero.
YEAR
INCOME THE MACHINE GENERATES (in euros)
1
800
2
1,200
3
1,800
4
2,700
5...

A company is considering two investment alternatives.
Alternative A is a new machine that costs $50,000 and will last for
ten years with no salvage value. It will save the company $5859 per
year and the savings will increase by $2080 each year. Alternative
B is a is a machine that will cost $75,000 and last 10 years. The
salvage value at the end of 10 years is $25,000. It will save
$11681 per year. Find the present worth of...

Billingham Packaging is considering expanding its production
capacity by purchasing a new? machine, the? XC-750. The cost of
the? XC-750 is $2.75
million.? Unfortunately, installing this machine will take
several months and will partially disrupt production. The firm has
just completed a $49,000
feasibility study to analyze the decision to buy the? XC-750,
resulting in the following? estimates:
• ?Marketing: Once the? XC-750 is operational next?
year, the extra capacity is expected to generate $10.20 million per
year in additional?...

The COO of AppleLike Inc. is considering an investment in a new
machine for iPadLike production. The machine costs $420,000. The
COO expects to make iPadLikes on this machine for 6 years, and then
he will no longer use the machine. Revenues are expected to be
$100,000 each year for this machine. The machine is also expected
to decrease production costs of the company by $35,000 per year.
There is no net change in working capital due to the new...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 4 minutes ago

asked 24 minutes ago

asked 25 minutes ago

asked 29 minutes ago

asked 34 minutes ago

asked 34 minutes ago

asked 39 minutes ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago