If you have the capitalized cost of a certain alternative that has a 5-year life, you can get its annual worth by: (a) multiplying the CC by i (b) multiplying the CC by (A/ F, i,5) (c) multiplying the CC by (P/A, i,5) (d) multiplying the CC by (A / P, i,5) (e) Any of the above d e
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- Wall’s Pharmacy will have to sell a new product that has an estimated revenue of $5,100 per month and costs of $1,000 per month with an initial purchase of $28,000. How long will Wall's Pharmacy have to sell a new product if the MARR is 3% per month? Wall's Pharmacy will have to sell a new product for __ months.27) For the following alternatives, (a) find the maximum cost you can spend on alternative A to break even with alternative B if the interest rate is 10% per year. (b) repeat A following expected lives, 5, 8, 10, 12, 15 years using Spreadsheet and Goal seek tool.A company that manufactures clear PVC pipes is investigating the production options of batch and continuous processing. Estimated cash flows are: Batch Process First cost ($) Annual cost ($ per year) Salvage value, any year, Continuous -69,000 -48,000 -140,000 -31,000 20,000 25,000 Life (years) 3-10 The chief operating officer (COO) has asked you to determine if the batch option, using an interest rate of 15% per year, would ever have an annual worth lower than that of the continuous flow system. The continuous flow process was previously determined to have Its lowest cost over a 5-year life cycle, but the batch process can be used from 3 to 10 years. If selecting the batch process is sensitive to its useful life, what is the minimum life that makes It more attractive? The batch system will be less expensive than the continuous flow if it lasts over years.
- Please answer the follow up questions in part (d) and (f) pleaseAn investor has invested $250,000 in a new rental property. Her estimated annual costs are $6000 and annual revenues are $20,000. What rate of return per year will the investor make over a 30-year period ignoring the salvage value? If the property can be sold for $200,000 what is the rate of return?A plastics company is considering two injection molding processes. Process X will have a first cost of $600,000, annual costs of $200,000, and a salvage value of $100,000 after 5 years. Process Y will have a first cost of $800,000, annual costs of $150,000, and a salvage value of $230,000 after 5 years. (a) What is the rate of return on the increment of investment between the two? (b) Which process. should the company select on the basis of a rate of return analysis, if the MARR is 20% per year?
- An investment of $10,000 can be made that will produce a uniform annual of $5,500 for five years and then have a market (salvage) value of $2,000. Annual expenses will be $3,150 each year. The company is willing to accept any project that will earn 10% per year or more, on all invested capital. Using future worth method, what is the future values of the annual profit?A company that manufactures brushless blowers invested $700,000 in an automated quality control system for blower housings. The resultant savings was $180,000 per year for 5 years. If the equipment had a salvage value of $100,000, what rate of return per year did the company make and should the company invest in the blower if MARR is 10%? 7.31% per year (invest in the blower) None of the above 7.31% per year (do not invest in the blower) 12.30% per year (invest in the blower) 12.30% per year (do not invest in the blower)Q3 solution needed. another pic is just for helping material
- Question 1:+ What is the equivalent annual cost in years 1 through 7 of a contract that has a first cost of $70,000 in year O and annual costs of $15,000 in years 3 through 7? Use (a) an interest rate of 10% per year, and (b) first estimate the final worth and then calculate the equivalent annual cost.Most likely estimates for a project are as follows. MARR Useful life Initial investment Receipts - Expenses (R-E) 10% per year 9 years $5,000 $1,200/year Click the icon to view the relationship between the PW and the percent change in parameter. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. (b) To which variable is the PW most sensitive to? OA. Receipts - Expenses OB. Usefule life OC. Initial Investment (a) Determine whether the statement "An initial investment of $6,000 keeps the investment economical." is true or false. O False O TrueTwo insulation thickness alternatives have been proposed for a process steam line subject to severe weather conditions. One alternative must be selected. Estimated installation cost and annual savings in heat loss are given below. \table[[\table[[Insulation], [ Thickness]], Installed Cost, \table[[Annual Savings in], [ Heat Loss]], Life of Insulation], [2cm, $20,000, $6,900 per year,4 years], [3cm, $35,000, $9,000 per year, 6 years]] The MARR = 10% per year. The study period is 12 years. Draw the cash flow diagram for each alternative over the entire study period. Two insulation thickness alternatives have been proposed for a process steam line subject to severe weather conditions. One alternative must be selected. Estimated installation cost and annual savings in heat loss are given below. Insulation Thickness 2cm Installed Cost $20,000 $35,000 Annual Savings in Heat Loss $6,900 per year $9,000 per year Life of Insulation 4 years 6 years 3cm = The MARR 10% per year. The study period…