During 2018, Jerry is a self-employed therapist, and his net earned income is $187,600 from his practice. Jerry's SEP Plan, a de
1 answer:
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Answer:
1.
The annual net cost savings promised by the automated welding machine
Annual Costs savings in replacing 6 welders $108,000
Reduced Material costs $6,500
Total annual Costs savings = $114,500
Note there is a $3,000 annual maintenance cost that will then be taken off this savings amount to make up the Annual Net cash inflow of $111,500
2
A. The Net Present value is $72,227. Kindly refer to the attached document for the clear presentation
B. The project should be accepted because it delivers a positive NPV. Meaning the net benefit outweighs the cost of owning the new Assets.
3.
The Discounted net Cash flow for the 6 years (aside the initial outlay) is $402,227.
Annually this comes to $67,038.
The benefit the business gets in the switch to the automatic welders is approximately $67,038 annually.
Answer:
3000
1500
Explanation:
For each of the answers in this question I have added the formulas to solve them in the attachment below
1.
(45-39)*5*100
= 3000
2.
(45-39)-3 x5 x100
= $1500
