What is the equivalent annual cost of the tool

Assignment Help Finance Basics
Reference no: EM133001693

A polisher costs $8,000 and will cost $15,000 a year to operate and maintain. If the discount rate is 12 percent and the polisher will last for 5 years, what is the equivalent annual cost of the tool?

Reference no: EM133001693

Questions Cloud

Brief history of financial cooperative : Please help me with this task: Brief history of financial cooperative
Create a balance sheet for a typical bank : Assume the following information: i. Mexican one-year interest rate = 15 percent ii. U.S. one-year interest rate = 11 percent iii. If interest rate parity exist
Journalize the transactions and the adjusting entries : Journalize the transactions and the adjusting entries. Paid garage $230 for changing the oil, replacing the oil filter, and tuning the engine
Explain how a change in general economic circumstances : Explain how a change in general economic circumstances may affect the value of a firm. Give a practical example
What is the equivalent annual cost of the tool : If the discount rate is 12 percent and the polisher will last for 5 years, what is the equivalent annual cost of the tool?
Calculate the after-tax weighted average cost of capital : The weight of preference shares is 15% and debt is 45%. The tax rate is 25%. Calculate the after-tax Weighted Average Cost of Capital (WACC)
What is the 10-day value at risk of aggregate portfolio : The portfolio manager of ABC Bank is estimating the aggregate DEAR of the bank's portfolio of assets consisting of loans (L), foreign currencies (FX), and commo
What nominal annual interest rate on the second investment : What nominal annual interest rate on the second investment would you have to receive to make you indifferent (same effective rate) between the two investments?
What is sustainable growth rate : Its balance sheet shows debt of $20,000 and equity of $74,000. If the total dividend paid was $8,500, what is its sustainable growth rate?

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate six month forward cross-exchange rates

Using the American term quotes from Exhibit 5.4, calculate the one-, three-, and six-month forward cross-exchange rates between the Canadian dollar and the Swiss franc. State the forward cross-rates in "Canadian" terms.

  What level of pretax cost savings

What level of pretax cost savings do we require for this project to be profitable? MACRS schedule.

  Discuss how certain features of bonds affect

Discuss how certain features (characteristics) of bonds affect their risk and hence return. Also discuss the usefulness and limitations of bonds ratings. How would these factors change your investment strategy when looking at bonds?

  If the balance sheet is a snapshot how would you describe

if the balance sheet is a snapshot how would you describe the income statement and the statement of cash

  Currency exchanges

What happens to the dollar price that a U.S. (a) importer pays and (b) exporter receives if prices are agreed in euros and the dollar then appreciates by 10 percent with respect to the euro?

  Double on a simple interest loan

How many months would it take for the debt to double on a simple interest loan whose annual rate is 8.12%? In other words, find the doubling time.

  Income statement for the year 2015

Khan Sports Company is prepared to report the following income statement for the year 2015.

  Dallas interiors has a cost of equity of 186 percent and a

dallas interiors has a cost of equity of 18.6 percent and a pre-tax cost of debt of 9.7 percent. the firms target

  Mortgage or home equity loan

An individual has a $120,000 30 year mortgage at 6 percent fixed. This individual also has a floating rate Home Equity line of credit for $20,000. The current rate on this loan is 8.5 percent

  What is the difference in the interest amounts

We will be purchasing a home for $135,000. The first thing that most banks require is a down payment. The typical down payment that banks require is 20%.

  Prepare a table to summarize the preceding transactions

Expert Consulting Services Corporation was organized on March 1, 2010 by two former college roommates. The company provides computer consulting services to small businesses.

  What are the transactions for the near and far dates

What are the transactions for the near and far dates, calculations for the exchange rate used at the end of the contract.

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