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Lilit [14]
3 years ago
8

An injection molding system has a first cost of $175,000 and an annual operating cost of $87,000 in years 1 and 2, increasing by

$4,000 per year thereafter. The salvage value of the system is 25% of the first cost regardless of when the system is retired within its maximum useful life of 5 years. Using a MARR of 14% per year, determine the ESL and the respective AW value of the system.
Business
1 answer:
shusha [124]3 years ago
7 0

Answer:

The ESL is 5 years and annual worth is $143,711

Explanation:

If negative values are not allowed, you can enter 143,711 as the annual worth

  • DF = Discounting factors are calculated by using the formula 1/1.14.

  • CF = cash flows. 3500 is added on annual basis from 3rd year, since the increase is per year.

  • Fifth year CF = 45000 is obtained as - 97500 + salvage value ( 210000 * 25%) 52500 = 45000.

  • AWF = Annual worth factor is obtained by dividing each year DF with the Total of DF.

  • In the last step we multiply CF and AWF to get equivalent annual worth.

Use the following formula:

AW = - 210000 / PVIFA - 87000 [ PV(1)/PVIFA] - 87000 [ PV(2) / PVIFA] - 90500 [  PV(3) / PVIFA] - 94000 [  PV(4) / PVIFA] - 45000 [  PV(5) / PVIFA].

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The strategy that founder Seth Goldman used to get Honest Tea on the shelves alongside larger, established brands  was Identifying and attacking a niche.

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"A pattern day trading account has a high market value during the day of $200,000 and has a "0" position at the end of the day.
d1i1m1o1n [39]

Answer:

C. $50,000

Explanation:

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From the question, we were told that a pattern day trading account has a high market value during the day of $200,000 and has a "0" position at the end of the day.

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3 years ago
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victus00 [196]

Answer:

A. The applied manufacturing overhead cost was greater than the actual manufacturing overhead cost.

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Answer:

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