Question: These are 2 different sub questions of one problem. Please answer both. Annual Sales Revenue resulting from the purchase of the new machine - $200,000

These are 2 different sub questions of one problem. Please answer both. These are 2 different sub questions of one problem. Please answer both.

Annual Sales Revenue resulting from the purchase of the new machine -

Annual Sales Revenue resulting from the purchase of the new machine - $200,000 Question: Now the same company wants to know how many complete years (integer value) will it take for the company to pay back its initial investment of $250.000 assuming a 0% time value of money 2 years 5 years 3 years 4 years 6 years revious Another Company has just invested in a new Machining Center that cost $250.000. The comparwy believes that it will be able to use this new piece of equipment for the next 10 years. At the end of this 10 year period, the company thinks that they can sell this equipment for $50,000. The company's MARR value is 10% ycy. (P/F An) (A/F %6.) (F/A %.n) (A/P %.n) (P/A %.n) 10 0.3855 0.06275 15.9374 0.16275 6.1446 Assume: The Annual Capital Recovery & Return value (CR) for this new equipment = $-37,550 The Annual Labor Costs $50,000 The Annual Material Costs = $17.000 The Annual Overhead Costs = $25.000 Annual Sales Revenue resulting from the purchase of the new machine = $200,000 Question: What is the Annual Profit Amount the company can expect from the purchase of the new machine?. Please fill the dollar amount in the answer window. (For example if your answer was $30,000; enter 30,000. If your answer was $-15.000; then enter - 15,000) Annual Sales Revenue resulting from the purchase of the new machine - $200,000 Question: Now the same company wants to know how many complete years (integer value) will it take for the company to pay back its initial investment of $250.000 assuming a 0% time value of money 2 years 5 years 3 years 4 years 6 years revious Another Company has just invested in a new Machining Center that cost $250.000. The comparwy believes that it will be able to use this new piece of equipment for the next 10 years. At the end of this 10 year period, the company thinks that they can sell this equipment for $50,000. The company's MARR value is 10% ycy. (P/F An) (A/F %6.) (F/A %.n) (A/P %.n) (P/A %.n) 10 0.3855 0.06275 15.9374 0.16275 6.1446 Assume: The Annual Capital Recovery & Return value (CR) for this new equipment = $-37,550 The Annual Labor Costs $50,000 The Annual Material Costs = $17.000 The Annual Overhead Costs = $25.000 Annual Sales Revenue resulting from the purchase of the new machine = $200,000 Question: What is the Annual Profit Amount the company can expect from the purchase of the new machine?. Please fill the dollar amount in the answer window. (For example if your answer was $30,000; enter 30,000. If your answer was $-15.000; then enter - 15,000)

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 Finance Questions!