You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $70,000, has a 5-year life, and has an annual OCF (after- tax) of -$11,300 per year. The Keebler CookieMunster costs $96,500, has a 7-year life, and has an annual OCF (after-tax) of -$9,300 per year. If your discount rate is 11 percent, what is each machine's EAC? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Pillsbury 707 Keebler CookieMunster EAC
Q: Vijay
A: Part 2: ExplanationStep 1: Calculate the total revenue from the contractThe total units to be sold…
Q: None
A: To calculate all the required values, first, we need to determine the annual cash flow under all…
Q: ABC Inc is considering a project that will generate perpetual cash flows of $15,000 per year…
A: Step 1: Calculate the weighted average cost of capital (WACC). Debt ratio = D/(D+E) = 0.8/(0.8+1) =…
Q: Now lets go back to the perpetual operation assumption. Also, imagine that I can grow my revenue and…
A:
Q: provide answer with calculation and provide correct and incorrect option explanation
A: Step 1: Calculate the after tax cost of borrowing: after tax = (cost of cars)x(interest rate)x(1-tax…
Q: Wyle Co. has $2.3 million of debt, $2 million of preferred stock, and $2.1 million of common equity.…
A: Given information: (Values in millions) Debt value (D) = $2.3 Preferred stock (P) = $2 Common…
Q: Raghubhai
A: a. Portfolio Expected Return, Variance, and Standard DeviationExpected Return:Calculate the weighted…
Q: You are considering two insurance settlement offers. The first offer includes annual payments of…
A: Given information, Annual payment (PMT) = $45,000Number of periods (n) = 12 yearsDiscount rate (r) =…
Q: Please fill in thr blank on the excel and show how you got the missing things.
A: The provided information appears to be the beginning of a financial model for a company, likely used…
Q: A 6 - year project with the following information: Costs of buying fixed assets is 66 billion. Net…
A: The Answer is:Considering the various inflows and outflows of cash over the 6-year period1. Initial…
Q: None
A: Part 2: Explanation:Step 1: Determine the changes in each balance sheet item from 2019 to 2020.-…
Q: am. 114.
A: Pmt=1,500,000×0.082/(1+0.082)19−1(1.082) 19−1=2.682362Now, we can calculate Pmt:Pmt=…
Q: You manage a pension fund that will provide retired workers with lifetime annuities. You determine…
A: b. Face Value of Zeros:Since these are zero-coupon bonds, their face value is equal to their market…
Q: The YTM on a bond is the interest rate you earn on your investment if interest rates don't change.…
A: Step 1:The expected rate of return on the bond investment is nothing but the yield to maturity of…
Q: A new furnace for your small factory is being installed right now, will cost $46,000, and will be…
A: The text in the image describes a capital budgeting scenario where you are considering investing in…
Q: 76°F Mostly cloudy 2 Current Attempt Pharoah Industries is expanding its product line and its…
A: NPV, or net present value, is how much an investment is worth throughout its lifetime, discounted to…
Q: Suppose the DJIA stands at 24,200. You want to set up a long straddle by purchasing 100 calls and an…
A: Step 1: Understanding a StraddleA straddle involves buying (or selling) both a call and a put option…
Q: i dont want thand writting image otherwise i will deslike you in 10 account
A: The objective of this question is to calculate the break-even cost per kilowatt-hour for using LED…
Q: am. 124.
A: To increase revenue, you must figure out how much a product, or your complete inventory, adds to…
Q: IRR A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7…
A: Step 1:We have to calculate the internal rate of return of the project.We will use the IRR function…
Q: Vijay
A: Step 1: Given Value for Calculation Weight of Equity = we = 70%Weight of Preferred Stock = wp =…
Q: Please fill in thr blank on the excel and show how you got the missing things. Thank you!
A: Let's go through the calculations step by step: 1. EBIT (Earnings Before Interest and Taxes):EBIT…
Q: Hint(s) Check My Work (All answers were generated using 1,000 trials and native Excel…
A: It seems like there are some typos and errors in the text you provided. Let me help you correct and…
Q: Please Write SteP by Step Answer Otherwise I give you DISLIKES !
A: For this particular problem we are going to use the future value formula: Future Value = PV…
Q: Find the convexity of a seven- year maturity, 6.6% coupon bond selling at a yield to maturity of…
A: In order to determine whether or not a bond is convex, we must first determine the present value of…
Q: Anderson International Limited is evaluating a project in Erewhon. The project will create the…
A: NPV is calculated using the NPV function: =NPV(rate,values)-initial cost IRR is calculated as:…
Q: Beryl's Iced Tea currently rents a bottling machine for $50,000 per year, including all maintenance…
A: Analyzing Beryl's Iced Tea's OptionsWe need to calculate the Net Present Value (NPV) of the Free…
Q: Turnbull Co. has a target capital structure of 58% debt, 6% preferred stock, and 36% common equity.…
A: : let's go through the calculations step by step for question one.**Turnbull Co.:**Given data:-…
Q: You have been asked by the president of your company to evaluate the proposed acquisition of a new…
A: Step 1: Determine the cash flows for year 0 In year 0 the cash flows are the cost of the truck and…
Q: The internal rate of return (IRR) refers to the compound annual rate of return that a project…
A:
Q: None
A:
Q: Before making capital budgeting decisions, finance professionals often generate, review, analyze,…
A: Here's a breakdown of the validity of each conclusion about capital budgeting:Valid Conclusions:The…
Q: You find a certain stock that had returns of 13 percent, -21.5 percent, 27.5 percent, and 18.5…
A: Given,Average return of the stock = 11 %Number of years = 5 yearsa.) To find the stock's return for…
Q: How do I fill in this table?
A: The table you provided appears to be a financial model with a terminal value for a company. Let's…
Q: Bhupatbhai
A: a. Market Value Capital Structure:1. Market Value of Each Component:Equity: We multiply the number…
Q: Cheng Inc. is considering a capital budgeting project that has an expected return of 23% and a…
A: Step 1:We have to calculate the coefficient of variation.The formula of coefficient of…
Q: eBook Nonconstant Growth Valuation A company currently pays a dividend of $3.2 per share (Do =…
A: As per CAPM -Required rate = Risk-free rate + Beta*Market risk premium =…
Q: Discuss the merits of the following statement: Inside directors should constitute the majority of a…
A: Title: The Role of Inside Directors in Corporate Boards: Balancing Insider Knowledge and External…
Q: es Suppose the following bond quote for IOU Corporation appears in the financial page of today's…
A: currentyield is calculated as the annual coupon payment divided by the current bond price,…
Q: Solution has been provided in this question each part.
A:
Q: Smith Bottling Company (SBC) expects this year's sales to be $624,000. SBC's variable operating…
A: Part a & b.Compute DOL, DFL and DTL for part a and EBIT and net income for part b: Formulas:
Q: provide correct answer A,B,C,D
A: Step 1: The journal entries for Part A, B and C respectively are passed as follows:-DateGeneral…
Q: What is the horizon value, i.e., the present value of all free cash flows from 2030 to infinity…
A: To calculate the total value of the company, we need to sum the present value of the cash flows from…
Q: During the year just ended, Anna Schultz's portfolio, which has a beta of 0.96, earned a return of…
A: The above answer can be explained as under - Treynor's measure can be calculated as - Treynor's…
Q: The following price quotations are for exchange-listed options on Primo Corporation common stock.…
A: Given information,Strike: 55Expiration: FebCall option: 7.21Put option: 0.48Contract: 100 sharesTo…
Q: Mosupi is interested in starting a new business and is investigating options for the loan that he…
A: 1: Kim, J. (2020). 6 Korean. Mermaid Construction: A Compound-Predicate Construction with Biclausal…
Q: Bhupatbhai
A: Step 1: To calculate the cash flows for this project, we need to consider the initial investment,…
Q: You are choosing between these four investments and you want to be 95% certain that you do not lose…
A: 1. Risk Tolerance and Investment Goals: You mentioned that you want to be 95% certain not to lose…
Q: 5 A high-interest savings account has a balance of $[A]. After (B) years of accumulating interest at…
A: Step-by-step analysis of the answers:A) FV1 = $29,550Step 1: Calculate the monthly interest…
Q: Suppose that Goodwin Co., a U.S. based MNC, knows that it will receive 200,000 pounds in one year.…
A: Now, we'll plot these points on the graph. Here's how the contingency graph would look with the…
Raghubhai
Step by step
Solved in 2 steps
- You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $57,500, has a 5-year life, and has an annual operating cash flow (after-tax) of –$10,100 per year. The Keebler CookieMunster costs $90,500, has a 7-year life, and has an annual OCF (after-tax) of –$8,100 per year. If your discount rate is 11 percent, what is each machine’s EAC? Note: Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $69,500, has a 5-year life, and has an annual OCF (after- tax) of -$11,200 per year. The Keebler CookieMunster costs $96,000, has a 7-year life, and has an annual OCF (after-tax) of -$9,200 per year. If your discount rate is 12 percent, what is each machine's EAC? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Pillsbury 707 Keebler CookieMunster EACYou are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $57,000, has a five-year life, and has an annual OCF (after-tax) of -$10,000 per year. The Keebler Cookie Munster costs $90,000, has a seven-year life, and has an annual OCF (after-tax) of -$8,000 per year. If your discount rate is 12 percent, what is each machine's EAC?
- You own a bakery that operates 365 days per year, and want to purchase a commercial oven for $3000, which includes free delivery and installation. The manufacturer says it should last for 10 years. Operating and maintenance cost for the oven is $1400 per year. To offset these, you are estimating that you will be able to make $45 per day after eliminating cost of ingredients and other overhead. Use Present Worth method to see if you should buy the oven if your MARR is 15%.You are evaluating two different machines. Machine A costs $10,000, has a five-year life, and has an annual OCF (after-tax) of -$2,500 per year. Machine B costs $15,000, has a seven-year life, and has an annual OCF (after-tax) of -$2,000 per year. If your discount rate is 14 percent, using EAC which machine would you choose? O Machine A O All of these choices are correct. ONeither machine A nor B O Machine B DA precision lathe costs $11,300 and will cost $26,500 a year to operate and maintain. If the discount rate is 12% and the lathe will last for 4 years, what is the equivalent annual cost of the tool? (Enter your answer as positive value. Round your answer to the nearest cent.) The equivalent annual cost $
- Elijah Enterprises will need to upgrade the computer system in 6 years. They anticipate the upgrade to cost $106,200. If the discount rate is 13%, what will be the required yearly investment needed to obtain the money for the upgrade?Round your (1+R)^n value to 2 decimal places and use that number for your final amount required rounded to the nearest dollar.Econo-Cool air conditioners cost $380 to purchase, result in electricity bills of $166 per year, and last for 5 years. Luxury Air models cost $580, result in electricity bills of $132 per year, and last for 8 years. The discount rate is 20%. a. What is the equivalent annual cost of the Econo-Cool model? Note: Do not round intermediate calculations. Round your answer to 2 decimal places.Econo - Cool air conditioners cost $390 to purchase, result in electricity bills of $168 per year, and last for 5 years. Luxury Air models cost $590, result in electricity bills of $136 per year, and last for 8 years. The discount rate is 23%. a. What is the equivalent annual cost of the Econo-Cool model? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. What is the equivalent annual cost of the Luxury Air model? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c. Which model is more cost-effective? multiple choice 1 Econo-Cool Luxury Air d-1. Now you remember that the inflation rate is expected to be 10% per year for the foreseeable future. What are the equivalent annual cost of the Econo - Cool and Luxury Air model? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. d-2, Which model is more cost- effective? multiple choice 2 Econo - Cool Luxury Air
- Econo Cool air conditioners cost $380 to purchase, result in electricity bills of $166 per year, and last for 5 years. Luxury Air models cost $580, result in electricity bills of $132 per year, and last for 8 years. The discount rate is 20% a. What is the equivalent annual cost of the Econo-Cool model? Note: Do not round intermediate calculations. Round your answer to 2 decimal places..Max is planning to buy an equipment. Model X cost $300 to purchases and result is a costing savings of $150 per year, and last for 5 years. Model Z cost $450, result in costs savings of $130 per year, and last for 10 years. The discount rate is 20%. Required: c. Calculate the Payback period for both the models.You are looking at purchasing a new computer for online class. Computer A costs $4000 now, and you expect it will last throughout your program without any upgrades. Computer B costs $2500 now and will need an upgrade at the end of two years, which you expect to be $1700. With 8 percent annual interest, compounded monthly, which is the less expensive alternative and by how much, if they provide the same level of service and will both be worthless at the end of the four years?