What is annual worth of the machine that corresponds

Assignment Help Financial Management
Reference no: EM131562729

A machine has a first cost of $70,000. Its market value declines by 20 % per year. The operating and maintenance costs start at $9,000 per year and increase by $2,500 per year. The interest rate is 9%. What is the Annual Worth of the machine that corresponds to its Economic Service Life?

Reference no: EM131562729

Questions Cloud

The income statement of healthcare organization : Which of the following would most likely be considered nonoperating income (versus operating income) on the income statement of a healthcare organization?
Calculate the npv in mexican pesos and us dollars : An American firm is evaluating an investment in Mexico. Calculate the NPV in Mexican pesos. Calculate the NPV in U.S. dollars.
What was the issuance price of these bonds : Ryan Company issued bonds with a coupon rate of 8% and a face amount of $5,000. What was the issuance price of these bonds on January 1 of Year 1
Solve each system of equations to nearest for each variable : Solve each system of equations to the nearest 0.001 for each variable by using a calculator.
What is annual worth of the machine that corresponds : What is the Annual Worth of the machine that corresponds to its Economic Service Life?
Design a human resource management strategy : Select an existing small company in an industry you are familiar with to be the basis of the small business in this case.
What is the change in the expected net interest income : Using the one-year cumulative repricing gap model, what is the change in the expected net interest income for a 1 percent increase in interest rates?
Calculate the present value of the bonds : On July 1, 2010, Harris Co. issued 6,000 bonds at $1,000 each. The bonds paid interest semiannually at 5%. Calculate the present value of the bonds
Calculate the one-year liquidity index for these securities : The Acme Corporation has been acquired by the Conglomerate Corporation. Calculate the one-year liquidity index for these securities.

Reviews

Write a Review

Financial Management Questions & Answers

  About the sarbanes-oxley act

You likely have read about the Sarbanes-Oxley Act.  Why do you suppose Congress passed this law?  In your opinion, is the law providing any benefit for the average investor?  Do you think if we have enough such laws, it will eventually be impossible ..

  Bond portfolio against the following kinds of risk

Some Internet research may be required to answer this question, although it’s not absolutely necessary. What could you do to protect your bond portfolio against the following kinds of risk? A. Risk of an increasing interest rate B. Risk of inflation ..

  Use the cboe options valuation tool

You are cautiously bullish on a stock, currently priced at $10 per share. So, you buy 100 shares at $10 and sell a call option ("write a covered call option") with an exercise price of $12 for which you collect $1.20 per share. Use the CBOE Options V..

  Makes semiannual coupon payments

A bond with a coupon rate of 8% makes semiannual coupon payments on January 15 and July 15 of each year. The ask price for the bond on January 30 is at 100:08. What is the Invoice Price of the bond? The coupon period has 182 days

  What is its pretax cost of debt-what is the cost of equity

If Kose’s cost of equity is 16 percent, what is its pretax cost of debt?

  Overall stock market is undervalued or overvalued

The “Price/Earnings” ratio is a common measure of whether the overall stock market is “undervalued” or “overvalued”.

  What is the present value of the project cash flows

A U.S. - based firm is planning to make an investment in Europe. The firm estimates that the project will generate cash flows of 100,000 euros after one year. If the one-year forward exchange rate is $1.35/euro and the dollar cost of capital is 10%, ..

  Difference between return and yield-to-maturity of a bond

Explain the difference between return and yield-to-maturity of a bond. Please be precise and give examples if necessary.

  The amount of interest in the twentieth payment

A loan of $45,999.55 is to be repaid by payments at the end of each quarter for eight years. Each payment is 4% higher than its predecessor. The loan is made at a nominal rate of discount of 4% payable quarterly. Find the balance just after the 20th ..

  Forecasts free cash flow in one year

A company forecasts free cash flow in one year to be -$10 million and free cash flow in two years to be $20 million. After the second year, free cash flow will grow at a constant rate of 4 percent per year forever. If the overall cost of capital is 1..

  The company pledges to increase its dividend

Caan Corporation will pay a $2.94 per share dividend next year. The company pledges to increase its dividend by 4.5 percent per year indefinitely. If you require a return of 12 percent on your investment, how much will you pay for the company’s stock..

  Difference in buy term and invest the difference strategy

The "difference" in the buy term and invest the difference strategy is the difference in ______________ between term life insurance and whole life insurance. The primary reason life insurance policies have a savings element is to allow the

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd