n plans to install a computer system to measure the dimensions of products so thar the proper size boxes can be used to ship items. This well save packing materials, cardboard, and labor. If the savings will be $132310 the first year and increases by $ 9521 each year for 9 years. What is the present worth of the system at an interest rate of 12%. Write your answer to two decimal places

n plans to install a computer system to measure the dimensions of products so thar the proper size boxes can be used to ship items. This well save packing materials, cardboard, and labor. If the savings will be $132310 the first year and increases by $ 9521 each year for 9 years. What is the present worth of the system at an interest rate of 12%. Write your answer to two decimal places

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 5EB: A grocery store is considering the purchase of a new refrigeration unit with an Initial Investment...

See similar textbooks

Similar questions

A grocery store is considering the purchase of a new refrigeration unit with an Initial Investment of $412,000, and the store expects a return of $100,000 in year one, $72000 in years two and three, $65,000 in years four and five, and $38,000 in year six and beyond, what is the payback period?
Elijah Enterprises will need to upgrade the computer system in 8 years. They anticipate the upgrade to cost $112,100. If the discount rate is 11%, what will be the required yearly investment needed to obtain the money for the upgrade?Round your (1+R)^n value to 2 decimal places and use that number for your final amount required rounded to the nearest dollar. Future Value / (1+R)^n = Amount Required / = What would be required if the discount rate was 9%? Future Value / (1+R)^n = Amount Required / =
You can purchase an equipment for $4,000. The equipment will provide benefits worth $900 a year. The expected life of the equipment is 8 years. It is expected that the price of the equipment will decrease by 15% per year. If the discount rate is 12%, would you buy the equipment today or will wait to purchase? When is the best time to purchase it? give excel file solution
You want to save money from your businessoperation to replace a truck that has been used indelivery. The truck will be replaced after 12 yearsfrom now and the replacement cost would be about$60,000. If you earn 5% interest on your savings,how much must you deposit at the end of each yearto meet the needs?
Fantastic Footwear can invest in one of two different automated clicker cutters. The first, A, has a $99,000 first cost. A similar one with many extra features, B, has a $390,000 first cost. A will save $50 000 per year over the cutter currently in use. B will save $150 000 per year. Each clicker cutter will last five years. If the MARR is 10 percent, which alternative is better? Use an IRR comparison. Question 4 options: Project A where IRR > MARR Project B where IRR > MARR Project A where IRR < MARR Project B where IRR < MARR
You are thinking of building a new machine that will save you $2,000 in the first year. The machine will then begin to wear out so that the savings decline at a rate of 1% per year forever. What is the present value of the savings if the interest rate is 8% per year? The present value of the savings is $ (Round to the nearest dollar.) Enter your answer in the answer box and then click Check Answer. All parts Clear All
Fantastic Footwear can invest in one of two different automated clicker cutters. The first, A, has a $90,000 first cost. A similar one with many extra features, B has a $400,000 first cost. A will save $50,000 per year over the cutter currently in use. B will save $150,000 per year. Each clicker cutter will last five years. If the MARR is 10 percent, which alternative is better? Use an IRR comparison. percent. For the increment from cutter A to cutter B, the IRR is For the increment from the do-nothing alternative to cutter A, the IRR is (Type integers or decimals rounded to one decimal place as needed.) percent. Therefore, should be chosen.
Jeff has $12,160 in his savings account and wants this to accumulate to $60,000 for a condominium down payment. Suppose he plans to make deposits of $860 at the beginning of every three months into this account which earns 5.9% compounded monthly. How long will it take to accumulate the $60,000 ? Choose calculator mode: Enter the future value as a positive value in the FV box below. Enter PV and PMT as positive or negative values based on FV being positive. Report N as a whole number. Please answer fast I give you upvote
A store plans on investing on a new grill oven that costs P100,000. It will generate revenues of P2,500 per day and expenses of P800 per day. Suppose the store will be operating 320days in a year. Evaluate the acceptability of this investment if the grill oven will have a life span of six years and MARR is 10% per year. Use PW method. WhatisIRR?
The price of a car you want is $42,000 today. Its price is expected to increase by $1000 each year. You now have $25,000 in an investment account, which is earning 10% per year. How many years will it be before you have enough to buy the car without borrowing any money? Solve by (a) trial and error, and (b) by spreadsheet.
Fantastic Footwear can invest in one of two different automated clicker cutters. The first, A, has a $150,000 first cost. A similar one with many extra features, B has a $579,000 first cost. A will save $50,000 per year over the cutter currently in use. B will save $160,000 per year. Each clicker cutter will last five years. If the MARR is 8 percent, which alternative is better? Use an IBB comparison should be chosen percent. For the increment from cutter A to cutter B, the IRR is percent. Therefore, For the increment from the do-nothing alternative to cutter A. the IRR is (Type integers or decimals rounded to one decimal place as needed.)
Fantastic Footwear can invest in one of two different automated clicker cutters. The first, A, has a $130,000 first cost. A similar one with many extra features, B has a $471,000 first cost. A will save $50,000 per year over the cutter currently in use. B will save $160,000 per year. Each clicker cutter will last five years. If the MARR is 8 percent, which alternative is better? Use an IRR comparison. For the increment from the do-nothing alternative to cutter A, the IRR is should be chosen. (Type integers or decimals rounded to one decimal place as needed.) percent. For the increment from cutter A to cutter B, the IRR is percent. Therefore,