Question

In: Finance

Draw the cash flow: Your aunt Carry wants to purchase a 200K piece of equipment for...

Draw the cash flow: Your aunt Carry wants to purchase a 200K piece of equipment for her factory, operations cost will be 20K a year as well as a 80K fee at the end of year three. By year seven your aunt would be able to resell the piece of equipment for 15K

Solutions

Expert Solution

ANSWER DOWN BELOW. FEEL FREE TO ASK ANY DOUBTS. THUMBS UP PLEASE.

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

A company wants to purchase a piece of equipment in three years that will cost $28,000...
A company wants to purchase a piece of equipment in three years that will cost $28,000 according to their best estimates. What amount do they need to invest now in a 6% interest bearing account to be able to make that purchase?
Suppose your business borrows $100,000 to purchase a piece of equipment. You will be borrowing the...
Suppose your business borrows $100,000 to purchase a piece of equipment. You will be borrowing the money and repaying it over a three year period with a fixed monthly payment at an annual interest rate of 6%. Construct a loan amortization table for this loan.
Your company's MARR is 9%.. Your boss wants to buy a new piece of rental equipment...
Your company's MARR is 9%.. Your boss wants to buy a new piece of rental equipment - a snow making machine - which she plans to rent to local ski clubs. The estimated cost of the machine is $55,000 and the annual O&M is $6000. She expects to rent the machine at $16,000 per season for 7 seasons, at which time Global Warming will end the ski industry. However the snow machine can be sold as an antique at an...
Draw a cash flow diagram for a cash flow that starts at $1,000 at the end...
Draw a cash flow diagram for a cash flow that starts at $1,000 at the end of the first month and increases by $100 each month after that in perpetuity with an interest rate of 21% annual compounded monthly (Draw at least the first 5 months). What is the present value of this cash flow?
PART A A student wants to purchase an investment property that can generate sufficient cash flow...
PART A A student wants to purchase an investment property that can generate sufficient cash flow (net rental income) to pay her monthly living expenses. The cash flow is calculated by taking the rent received in a month and subtracting all of the expenses associated with the property for that month. The expenses are: landlord insurance property taxes repair cost management fees Write a program to calculate the net income and determine if it’s sufficient to pay the living expenses....
You must evaluate the purchase of a proposed piece of equipment. The cost of the equipment...
You must evaluate the purchase of a proposed piece of equipment. The cost of the equipment is $50,000. The installation and transportation cost of bringing the equipment to its location is $6,000. The equipment falls into the MACRS 3-year class. The project is expected to increase revenues by $80,000 each year and increase operating costs (excluding depreciation) by $30,000 each year. This project leads to an increase in net operating working capital by $10,000. You can salvage the equipment for...
You must evaluate the purchase of a proposed piece of equipment. The cost of the equipment...
You must evaluate the purchase of a proposed piece of equipment. The cost of the equipment is $50,000. The installation and transportation cost of bringing the equipment to its location is $6,000. The equipment falls into the MACRS 3-year class. The project is expected to increase revenues by $80,000 each year and increase operating costs (excluding depreciation) by $30,000 each year. This project leads to an increase in net operating working capital by $10,000. You can salvage the equipment for...
You must evaluate the purchase of a proposed piece of equipment. The cost of the equipment...
You must evaluate the purchase of a proposed piece of equipment. The cost of the equipment is $50,000. The installation and transportation cost of bringing the equipment to its location is $6,000. The equipment falls into the MACRS 3-year class. The project is expected to increase revenues by $80,000 each year and increase operating costs (excluding depreciation) by $30,000 each year. This project leads to an increase in net operating working capital by $10,000. You can salvage the equipment for...
Your aunt is about to retire, and she wants to buy an annuitythat will provide...
Your aunt is about to retire, and she wants to buy an annuity that will provide her with income of $26,500 per year for 30 years, beginning a year from today. The interest rate is 7%. How much would the annuity cost her today?a.$259,805.12b.$328,839.59c.$378,481.53d.$250,321.65e.$2,503,217
ben is considering the purchase of new piece of equipment. the cost savings from the equipment...
ben is considering the purchase of new piece of equipment. the cost savings from the equipment would result in an annual increase in net income of $200000. the equipment will have an initial cost of $1200000 and have an 8 year life. the salvage value of the equipment is estimated to be $200000. the hurdle rate is 10%. what is accounting rate of return? b) what is the payback period? c) what is the net present value? d) what would...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT