Question
In: Finance
Please use excel and demonstrate the formulae used. A medium-sized industrial grade compressor can be purchased...
Please use excel and demonstrate the formulae used.
A medium-sized industrial grade compressor can be purchased for $35,000. Annual O&M costs are expected to increase $1,300 every year, with a 1st year O&M cost of $2,000. (MARR = 16%, and planning horizon is 10 years)
The compressor salvage value for a given period
t, is calculated based on the following
equation: Salvage value (t) = $30,000– $3,000 * t
a) Find the Optimum Replacement Interval for this Equipment
b) Find the Optimum Replacement Interval for this Equipment if the
O&M costs is increased to $1,600/yr. What is your
conclusion?
c) Find the Optimum Replacement Interval for this Equipment if the
initial cost is reduced to $32,000. What is your conclusion?
Solutions
jeff jeffy answered 9 months agoRelated Solutions
A medium-sized industrial grade compressor can be purchased for $35,000. Annual O&M costs are expected to...
A medium-sized industrial grade compressor can be purchased for
$35,000. Annual O&M costs are expected to increase $1,300 every
year, with a 1st year O&M cost of $2,000. (MARR = AAA+15%, and
planning horizon is 10 years)
• The compressor salvage value for a given period t, is
calculated based on the following equation: Salvage value (t) =
$30,000– $3,000 * t
a) Find the Optimum Replacement Interval for this Equipment
b) Find the Optimum Replacement Interval for this Equipment...
A medium-sized industrial grade compressor can be purchased for $35,000. Annual O&M costs are expected to...
A medium-sized industrial grade compressor can be purchased for
$35,000. Annual O&M costs are expected to increase $1,300 every
year, with a 1st year O&M cost of $2,000. (MARR =16%, and
planning horizon is 10 years)
• The compressor salvage value for a given period t, is
calculated based on the following equation: Salvage value (t) =
$30,000– $3,000 * t
a) Find the Optimum Replacement Interval for this Equipment
b) Find the Optimum Replacement Interval for this Equipment if...
Please use excel and demonstrate the formulae used. A regional architecture/contractor firm purchased an HVAC unit...
Please use excel and demonstrate the formulae used.
A regional architecture/contractor firm purchased an HVAC unit
for $25,000 that was expected to last 15 years. It has a salvage
value of $0 in 10 more years. The annual operating cost of this
unit started at $2,000 in the first year and has increased steadily
at $250 per year ever since; last year the cost was $3,000. Its
book value is now $13,000. They are building a new wing at their...
Please use excel and demonstrate the formulae used. A new project will cost $32,356 initially and...
Please use excel and demonstrate the formulae used.
A new project will cost $32,356 initially and will last for 7
years, at which time its salvage value will be $2,500. Annual
revenues are anticipated to be $15,000 per year. For a MARR of 6%
percent every year, plot a sensitivity graph for annual worth
versus initial cost, annual revenue, and salvage value, varying
only one parameter at a time, each within the range of +/- 50%
increments of 10%.
*****PLEASE SHOW IN EXCEL***** 4. An industrial grade lazer printer with the retail price is offered...
*****PLEASE SHOW IN EXCEL*****
4. An
industrial grade lazer printer with the retail price is offered for
$3,900. If the sale is for 36 months with $135 per monthly
payments, what is the interest rate?
A. 14.15 percent
B. 14.90 percent
C. 15.60 percent
D. 18.75 percent
E. 19.15 percent
A medium-sized profitable corporation may buy a $15,000 used pickup truck for use by the shipping...
A medium-sized profitable corporation may buy a $15,000 used
pickup truck for use by the shipping and receiving department.
During the truck’s 5-year useful life, it is estimated the firm
will save $4000 per year after all the costs of owning and
operating the truck have been paid. Truck salvage value is
estimated at $4500. a. What is the before-tax ROR? b. What is the
after-tax ROR? Assume straight-line depreciation, 34% tax rate.
***Excel is required to solve this problem. Please use excel and show all formulas used in...
***Excel is required to solve this problem. Please use excel and
show all formulas used in each cell I would really appreciate the
work***
Three-Stage FCFE Model:
Biomet Inc., designs, manufactures and markets reconstructive
and trauma devices, and reported earnings per share of $0.56 in
1993, on which it paid no dividends. (It had revenues per share in
1993 of $2.91). It had capital expenditures of $0.13 per share in
1993 and depreciation in the same year of $0.08 per...
DAY CARE COMES TO NORTHVILLE (show formulas in excel spreadsheet) DESCRIPTION Northville, a medium-sized city in...
DAY CARE COMES TO NORTHVILLE (show formulas in excel
spreadsheet)
DESCRIPTION
Northville, a medium-sized city in the midwestern part of the
United States, has experienced a significant change in the
composition of its municipal work force of 1,800 employees.
Approximately thirty-five percent of the city employees are now
female. In a recent survey of city employees, over forty percent
have said that "affordable day care for children" was important to
them. Meanwhile Director of the Office of Personnel Mary Lux...
Heat Transfer in a Steel Pan A medium sized steel pan is used to boil water...
Heat Transfer in a Steel Pan A medium sized steel pan is used to
boil water on top of an electric range. Approximately 85% of the
1000 W produced by the heating unit is transferred nearly uniformly
into the pot during use. Express the most appropriate form of the
heat diffusion equation that describes the heat transfer through
the bottom section of the pan. Include all relevant boundary
conditions. The bottom section of the pan has a thickness of 0.5...
Please explain your answers and use Excel to show the excel formula you used to get...
Please explain your answers and use Excel to show the
excel formula you used to get your solution.
6. A manufacturing process produces connecting rods
whose diameter is normally distributed with mean 1.495 cm and
standard deviation .05 cm. In what range will the “middle 80%” of
the diameters lie? What about the “middle 98%”?
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