What is the present worth at MARR

Assignment Help Financial Management
Reference no: EM131077851

A new packing machine will cost $57,000. The existing machine can be sold for $5000 now and the new machine for $7500 after is 10 year useful life. If the new machine reduces annual expenses by $5000, what is the present worth at a MARR of 25%?

Reference no: EM131077851

Questions Cloud

What is the firm after tax cost of debt : 1,000 par value bond matures in 6 years, interest at 8%, 1150.00 market value, tax rate at 30%, and marginal tax rate at 36%. What is the firm after tax cost of debt?
Living will rule : What happened in 2008 is the "living will" rule in the Dodd Frank documents is trying to fix or correct? Please be elaborate and provide the best example in great detail.
Deposit the money into an account : Jackson & Parnell receive $8873 every six months from a grant. The amount they receive decreases each period by $157. Jackson & Parnell deposit the money into an account paying 5% per year, compounded biannually. How much will they have in the accoun..
Fixed-rate mortgage to buy new home : You need a 35-year, fixed-rate mortgage to buy a new home for $340,000. Your mortgage bank will lend you the money at an APR of 6.35 percent for this 420-month loan. How large will this balloon payment have to be for you to keep your monthly payments..
What is the present worth at MARR : A new packing machine will cost $57,000. The existing machine can be sold for $5000 now and the new machine for $7500 after is 10 year useful life. If the new machine reduces annual expenses by $5000, what is the present worth at a MARR of 25%?
Emergency-major medical expenses-home flood-car accident : Emergency (major medical expenses, home flood, car accident) Include a description of their personal impact on you – your current financial situation, what adjustments you would have to make, how long it will take to pay for each of these, and specif..
What are the terminal cash flows-operating cash flow in year : Edward's Manufactured Homes is considering replacing some machines. Edward’s purchased the current machinery 2 years ago for $320. The company is considering replacing this machinery today with newer machines that utilize the latest in technology. Wh..
Describe three modeling techniques : List and describe three modeling techniques that meet the informational needs of stakeholders to ensure full coverage of a business domain.
Proposal the cost-benefit analysis tableau for your proposal : How would you set up a cost-benefit analysis of a program to reduce air pollution in a city? Indicate the items you would include as costs and benefits, and discuss the problems encountered in measuring these benefits and costs. Write a three page re..

Reviews

Write a Review

Financial Management Questions & Answers

  Continue to rebuild stakeholder relationships in gulf region

BP's experience in the Gulf of Mexico has made it the poster company for how not to manage stakeholder relationships effectively (see Strategy Highlight 1.2). What advice would you give to BP's managers in order to help them continue to rebuild stake..

  What is the total interest paid

Suppose that a debt of $2200 with interest at i^(4) = 0.10 is amortized by payments of $500 at the end of each quarter for as long as possible. How many payments are made? What is the last payment? What is the total interest paid?

  What types of decisions-discontinuing a business segment

What types of decisions, other than make-or-buy, discontinuing a business segment, or using a constrained resource, can be analyzed using relevant costs?

  A college administrator wants to study the average age

Find a 95% confidence interval for the mean age of all first semester college dropouts. Interpret your results in part (a) inwords.

  How much new long-term debt financing will be needed

At year-end 2015, Wallace Landscaping’s total assets were $1.9 million and its accounts payable were $390,000. Sales, which in 2015 were $2.1 million, are expected to increase by 20% in 2016. How much new long-term debt financing will be needed in 20..

  Customers is delinquent on his accounts payable balance

One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $680 per month. You will charge 1.08 percent per month interest on the overdue balance.

  Determine effective annual percentage interest rate on cd

First State Bank offers a certificate of deposit that pays a 4.75 percent annual rate compounded monthly. Determine the effective annual percentage interest rate on this CD.

  About the relative attractiveness

Max Colvin has equally attractive job offers in Miami and Los Angeles. The rent ratios in the cities are 8 and 20, respectively. Max would really like to buy rather than rent a home after he moves. Explain how to interpret the rent ratio and what it ..

  Calculate net present value of loan including flotation cost

Daniel Kaffe, CFO of Kendrick Enterprises, is evaluating a 10-year, 5.90 percent loan with gross proceeds of $5,970,000. The interest payments on the loan will be made annually. Calculate the net present value of the loan excluding flotation costs. C..

  Assuming that the executive leadership includes several

assuming that the executive leadership includes several former accountants how would the organizational goals influence

  Considered a cost of debt financing

Which of the following would NOT be considered a cost of debt financing?

  Fleet average fuel economy

A transportation company (Transvan) operates a fleet of 1000 vans with a fleet average fuel economy (FAFE) of 20 miles per gallon (mpg). On the average, each of these vans travels 25,000 miles per year, and is expected to be in service for 5 years. P..

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