Question: Hi Dear I need your help. Your Help is highly appreciated. Thank You! Subject: Engineering Economics A firm is considering purchasing equipment that will reduce

Hi Dear I need your help. Your Help is highly appreciated. Thank You!

Subject: Engineering Economics

A firm is considering purchasing equipment that will reduce costs by P40,000. The equipment costsP300,000 and has a salvage value of P50,000 and a life of 7 years. The annual maintenance cost is P6,000. While not in use by the firm, the equipment can be rented to others to generate an income of P10,000 per year. If money can be invested for an 8% return, is the firm justified in buying the equipment? Solve the follwing:

(a) Use Present Worth Method

(b)Use Future worth Mehod

(d) Use Rate-of-Return Method

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Hi Tutors I need help with writing a Memo based on the below needs and the calculations I have done for various stakeholders scenario. I need help with Part B and your help is highly appreciated....

I need someone that is very good at Principles of accounting and finance to answer the attached questions. It is not a one-day job therefore if you do not have the time, please don't attempt it. The...

By MARK@ (Ruska, Markevichus, Naniev, Grachev) Emerging russian ice-cream market is good area for different producers as it has great potential 1. Currently Russian ice-cream market is the 4th...

Please help me with the questions below. Thank you! Answer the questions below for this year and last year, using your SEC 10-K: Link to SEC...

I'm in desperate for help. It's due on next Tuesday midnight. Attached files contain all the requirements of this individual project. I also added some hint on word file and ppt file to mark the...

The maximum number of words should be 900 words, watch Position Descriptions - Oil and Gas Procurement up to first 10 min and write based on that In this assignment, please answer the following: the...

I am working on a group project and I am working on assignment 5. I have attached the assignment and the financial report I need to work off of. I would like some one to help me with this. Please let...

Hi there! One more question for you. Similar to my last one. I have to have it done by tonight. Let me know if you cannot do it. Here it is: Scenario 3 May I Propose To... You are a partner in a...

Refer to the Archives of Pediatrics and Adolescent Medicine (Dec. 2007) study of treatments for childrens cough symptoms, Exercise. The data are saved in the HONEYCOUGH file. In exercise Do you agree...

If a motor designed for 50- or 60-cycle operation is connected to 60 Hz current, the motor will A. turn faster. B. produce less torque. C. overheat and fail. D. stall easily.

Describe how control risk is related to some of the key substantive procedures used within auditing. How is control risk managed?

you are a corporate trainer for XYZ organization. You have just been tasked with developing and deploying a training program for new customer service representatives discussing how to reply to...

Review the rental costs at Pine Woods Apartments outlined below. Compare these costs with your estimated income and rental and living expenses, and then answer the following questions. THE CHALLENGE...

Hotel Baroneii International is an international hospitality group that is present in more than 100 countries with 12 brands and 5000 plus properties. The group also has a strong loyalty membership...

return and covariance matrix are given as follows. L2 Three securities are available for investment, and their expected rates of 3 = 0.12 0.02 0.02 2 01 012 2 021 02 013 023 2 031 032 03 = 0.04...

During Year 1, Anthony Company purchased debt securities and holds the securities as available-for-sale. Pertinent data are as follows: Security Cost $20,000 TE 40,000 90,000 $150,000 A B Fair value...

What do many organizations use to schedule and coordinate changes for information systems? Question 2 3 options: A . Impact analysis B . Backout plans C . Maintenance windows D . Version control

9. What type of competence is important to have and develop in order to strengthen the core value you want others to associate with you?

6. Identify a core value that is important to you and that you would like to strengthen in yourself. Write down this core value. Then complete the follow-ing sentence: This core value is important to...

13. In the statements below, put a cross for the statement you feel characterizes yourself best when you communicate with others. Its not necessarily the way you know you should communicate, but the...