Conducting a double-blind study is easier when assessing the effectiveness of _____ compared with ____

A company is considering buying a new piece of machinery. A 10% interest rate will be used in the computations. Two models of th

JulsSmile [24]

Answer:

Machine I

capitalized cost: 230,271.28

EAC: $ 27,047.58

Machine II

EAC: $ 27,377.930

As Machine I cost per year is lower it is better to purchase that one.

Annual deposits to purchase Machine I in 20 years: $ 1,396.770

return of machine I with savings of 28,000 per year: 10.51%

Explanation:

WE calculate the present worth of each machine and then calculate the equivalent annual cost:

MACHINE 1

Operating cost:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 18,000

time 20

rate 0.1

$18000 \times \frac{1-(1+0.1)^{-20} }{0.1} = PV\\$

PV $153,244.1470

Salvage value:

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity $20,000.0000

time 20.00

rate 0.1

$\frac{20000}{(1 + 0.1)^{20} } = PV$

PV 2,972.87

Total: -80,000 cost - 153,244.15 annual cost + 2,972.87 salvage value:

Total: 230,271.28

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

Present worth $(230,271.28)

time 20

rate 0.1

$-230271.28 \div \frac{1-(1+0.1)^{-20} }{0.1} = C\\$

C -$ 27,047.578

Fund to purchase in 20 years:

$FV \div \frac{(1+r)^{time} -1}{rate} = C\\$

FV $80,000.00

time 20

rate 0.1

$80000 \div \frac{(1+0.1)^{20} -1}{0.1} = C\\$

C $ 1,396.770

IF produce a 28,000 savings:

we must solve using a financial calcualtor for the rate at which the capitalized cost equals 28,000

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

PV $230,271.28

time 20

rate 0.105126197

$230271.28 \div \frac{1-(1+0.105126197287798)^{-20} }{0.105126197287798} = C\\$

C $ 28,000.000

rate of 0.105126197 = 10.51%

<u>Machine II</u>

100,000 cost

25,000 useful life

15,000 operating cost during 10 years

20,000 for the next 15 years

Present value of the operating cost:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 15,000

time 10

rate 0.1

$15000 \times \frac{1-(1+0.1)^{-10} }{0.1} = PV\\$

PV $92,168.5066

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 20,000

time 15

rate 0.1

$20000 \times \frac{1-(1+0.1)^{-15} }{0.1} = PV\\$

PV $152,121.5901

in the timeline this is at the end of the 10th year we must discount as lump sum for the other ten years:

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity $152,121.5901

time 10.00

rate 0.1

$\frac{152121.590126167}{(1 + 0.1)^{10} } = PV$

PV 58,649.46

salvage value

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity $25,000.0000

time 25.00

rate 0.1

$\frac{25000}{(1 + 0.1)^{25} } = PV$

PV 2,307.40

Total cost: 100,000 + 92,168.51 + 58,649.46 - 2,307.40 = $248,510.57

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

PV $248,510.57

time 25

rate 0.1

$248510.57 \div \frac{1-(1+0.1)^{-25} }{0.1} = C\\$

C $ 27,377.930

4 0

4 years ago

(a) what is the imputed holding cost per unit for this item, based on the data given? (b) if the actual annual holding cost per

rodikova [14]

Data imputation involves replacing missing or inconsistent data with approximated values (fields). The replaced values are designed to provide a data record that passes edit checks.

How Does Imputed Value Work?

When the real value of an item is unknown or unavailable, it is given an assumed value known as imputation, also referred to as estimated imputation. Imputed values are logical or implicit values that are assigned to items or time sets when their "real" value is not yet known.

forecast a wider collection of values or series of data points is called an imputed value. Imputed values can be used to determine the worth of an organization's intangible assets, the opportunity cost associated with an event, or the value of a historical item for which information on the item's value at a previous period is unavailable.

Learn more about Imputed Value here:

brainly.com/question/14631762

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5 0

1 year ago

Which type of interest rate saves you the most money if you carry a balance

Vilka [71]

Answer:

C

Explanation:

5 0

2 years ago

Read 2 more answers

Your uncle has $340,000 invested at 7.5%, and he now wants to retire. He wants to withdraw $35,000 at the end of each year, star

timama [110]

Answer:

17.27 years

Explanation:

For this question we use the NPER formula that is shown on the attachment below:

Provided that

Present value = $340,000

Future value = $25,000

PMT = $35,000

Rate of interest = 7.5%

The formula is shown below:

= NPER(Rate;PMT;-PV;FV;type)

The present value come in negative

So, after solving this, the number of year is 17.27 years

5 0

3 years ago

The Betterbilt Construction Company designs and builds residential mobile homes. The company is ready to construct, in sequence,

bagirrra123 [75]

Answer:

(a) The estimated cumulative average material cost per square foot for the first five homes is $24.47.

(b) The estimated material cost per square foot for the last (16th) home is $19.34.

Explanation:

(a) If the cost its reduced by 8% every time the number of homes is doubled, we can express the cost of the first five houses as

C1 = C

C2 = C*(1-0.08)=0.92*C

C3 = C2 = 0.92*C

C4 = C2*(1-0.08)=0.92*0.92*C = 0.8464*C

C5 = C4 = 0.8464*C

Then, the average cost of the first five houses is

$\bar{C}=(1/5)*(C1+C2+C3+C4+C5)\\\\\bar{C}=(1/5)*(C+0.92C+0.92C+0.8464C+0.8464C)\\\\\bar{C}=(1/5)*4.5328*C = 0.90656*C=0.90656*27=24.47$

The estimated cumulative average material cost per square foot for the first five homes is $24.47.

For the 16th home, the number we can estimate that the number of homes double 4 times: at house number 2,4, 8 and 16.

Other way to calculate that is $n=log_2(16)=4$

We can write the cost of the 16th house as

$C_{16}=0.92*C_8=0.92^{2} *C_4=0.92^{3} *C_2=0.92^{4} *C\\\\C_{16}=0.92^{4} *C=0.716*C=0.716*27=19.34$

The estimated material cost per square foot for the last (16th) home is $19.34.

4 0

4 years ago

Conducting a double-blind study is easier when assessing the effectiveness of _____ compared with _____.

Conducting a double-blind study is easier when assessing the effectiveness of _ compared with _.