Finanace
Question 110 pts
What is the capital recovery cost for a machine costing $604,800 with a life of 12 years and a salvage value of 14% of the initial cost? The rate used by the firm is 10% per year compounded weekly.
Group of answer choices
$73,871
$74,706
$87,136
$108,748
What is the initial cost of a machine with a life of 8 years that has a salvage value of $99,500 and a capital recovery cost of $65,000 per year? The firm uses a rate of 7% per year compounded quarterly.
Group of answer choices
$333,745
$442,465
$567,937
$719,566
What is the NPW for a machine with the following details:
APR (Nom / y) 9% p y c m
Initial cost ($175,000)
Salvage value 14% of initial value
First year cost ($62,000)
Increase in cost 4% p y
First year revenue $90,000
Increase in revenue 8% p y
Life of machine 10 years
Group of answer choices
$93,398
$156,135
$233,578
$325,750
What is the FW of a machine with the following details:
APR (Nom / y) 8% p y c d
Initial cost ($175,000)
Salvage value 26% of initial value
First year cost ($66,000)
Increase in cost 4% p y
First year revenue $95,000
Increase in revenue 9% p y
Life of machine 10 years
Group of answer choices
$52,629
$153,152
$306,747
$526,723
What is the IRR for a machine with the following details?
APR (Nom / y) 7% p y c w
Initial cost ($325,000)
Salvage value 8% of initial value
First year cost ($99,000)
Increase in cost 7% p y
First year revenue $130,000
Increase in revenue 11% p y
Life of machine 15 years
Group of answer choices
11.64%
17.52%
22.20%
26.24%
What is the FW for a machine with the following details:
APR (Nom / y) 11% p y c d
Initial cost ($375,000)
Salvage value 16% of purchase value
First year cost ($106,000)
Inflation (all costs) 5.50% p y
First year revenue $175,000
Increase in revenue 12% p y
Life of machine 5 years
Life of project 20 years
Group of answer choices
$874,583
$2,422,461
$5,315,356
$10,194,603
What is the IRR for a machine with the following details?
APR (Nom / y) 9% p y c d
Initial cost ($475,000)
Salvage value 20% of purchase value
First year cost ($106,000)
Inflation (all costs) 6.50% p y
First year revenue $195,000
Increase in revenue 11% p y
Life of machine 5 years
Life of project 20 years
Group of answer choices
7.00%
13.26%
18.45%
22.96%
What initial cost of machine D will make the IRR for the two machines equal?
Cost of Machine C ($625,000) Cost of Machine D ($900,000)
Salvage value 17% of purchase value Salvage value 19% of purchase value
First year cost ($85,000) First year cost ($102,000)
Inflation (all costs) 3.00% p y Inflation (all costs) 3.50% p y
First year revenue $190,000 First year revenue $215,000
Increase in revenue 4% p y Increase in revenue 6% p y
Life of machine 5 years Life of machine 5 years
Life of project 20 years Life of project 20 years
Group of answer choices
$479,095
$770,040
$730,419
$1,961,354
Which graph shows the net present worth of Project X at various rates of interest from 0% to 50%? The file with the graphs is attached here:Quiz 5-9.pptx
Years Project X
0 ($770,040)
1 ($347,490)
2 $143,612
3 $143,612
4 $143,612
5 $143,612
6 $168,239
7 $168,239
8 $365,479
9 $218,287
10 $229,202
Group of answer choices
Graph 1
Graph 2
Graph 3
Graph 4
For what finance rate, will the two projects have the same MIRR?
Finance rate 5.00% Years Project E Project F
Reinvest rate 8.0% 0 ($575,000) ($1,345,000)
1 $155,000 $173,000
2 $155,000 $173,000
3 $155,000 $173,000
4 $155,000 $173,000
5 ($575,000) $173,000
6 $172,000 $173,000
7 $172,000 $173,000
8 $172,000 $173,000
9 $172,000 $173,000
10 $172,000 $173,000
Group of answer choices
1.73%
1.28%
0.43%
0.24%
