Question: please answer all parts and correct do not take other Your company decides to invest in a project to purchase and install an automated data
please answer all parts and correct do not take other




Your company decides to invest in a project to purchase and install an automated data processing machine for a supplier. The company that is selling the automated data processing machine has specified that the automated data processing machine needs to last forever, and will always be operational. The associated costs for the machine are shown in the table below. How much should you charge your supplier for the automated data processing machine in order to install and maintain the perpetual project? Interest rate is 5%. Costs Amount Year Incurred Initial Cost Year 0 $160,000 $55,000 Year 1 One-time Setup Cost Annual Operating & Maintenance Costs $8,00 Per year, forever Major Maintenance Costs $30,000 First in Year 4, then every 4 years forever Question 5 Part A: What is the equation used to find the portion due to the Nonrecurring Costs (the costs that do not repeat)? | 160,000 + 55,000(P/F, 5%, 1) 160,000 + 55,000(F/P, 5%, 1) 160,000 + 55,000(P/F, 5%,1) + 30,000(P/F, 5%, 4) y 160,000 + 55,000(F/P, 5%, 1) + 30,000(F/P, 5%, 4) Your company decides to invest in a project to purchase and install an automated data processing machine for a supplier. The company that is selling the automated data processing machine has specified that the automated data processing machine needs to last forever, and will always be operational. The associated costs for the machine are shown in the table below. How much should you charge your supplier for the automated data processing machine in order to install and maintain the perpetual project? Interest rate is 5%. Amount Costs Initial Cost One-time Setup Cost $160,000 $55,000 Year Incurred Year 0 Year 1 $8,00 Per year, forever Annual Operating & Maintenance Costs Major Maintenance Costs $30,000 First in Year 4, then every 4 years forever Question 5 Part B: What is the equation used to find portion of the cost due to the Recurring Cost (major maintenance costs)? [30,000(A/F, 5%, 4)]/0.051 [30,000(F/A, 5%, 8) 2 (30,000(FIA, 5%, 45/0.05 Your company decides to invest in a project to purchase and install an automated data processing machine for a supplier. The company that is selling the automated data processing machine has specified that the automated data processing machine needs to last forever, and will always be operational. The associated costs for the machine are shown in the table below. How much should you charge your supplier for the automated data processing machine in order to install and maintain the perpetual project? Interest rate is 5%. Costs Amount Year Incurred Year 0 Initial Cost $160,000 $55,000 Year 1 One-time Setup Cost Annual Operating & Maintenance Costs $8,00 Per year, forever Major Maintenance Costs $30,000 First in Year 4, then every 4 years forever Question 5 Part C: What is the equation used to find the portion of the cost due to the Annual Cost (annual operating and maintenance costs)? 8,000/0.05 + 30,000(P/A, 0.05, 4) 8,000(P/F, 0.05, 1) + 30,000(P/A, 0.05, 4) 8,000/0.05 Your company decides to invest in a project to purchase and install an automated data processing machine for a supplier. The company that is selling the automated data processing machine has specified that the automated data processing machine needs to last forever, and will always be operational. The associated costs for the machine are shown in the table below. How much should you charge your supplier for the automated data processing machine in order to install and maintain the perpetual project? Interest rate is 5%. Costs Initial Cost One-time Setup Cost Annual Operating & Maintenance Costs Amount $160,000 $55,000 Year Incurred Year 0 Year 1 $8,00 Per year, forever Major Maintenance Costs $30,000 First in Year 4, then every 4 years forever Question 5 Part D: What is the equation used to find the Capitalized Cost? Annual Cost = Nonrecurring Cost + Recurring Cost Capitalized Cost = Nonrecurring Cost + Recurring Cost + Annual Cost Nonrecurring Cost = Recurring Cost + Annual Cost Capitalized Cost + Annual Cost - Nonrecurring Cost + Recurring Cost
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