Mathematics, 02.04.2020 19:18 leeahnnfoster
A new furnace for your small factory will cost $45,000 and a year to install, will require ongoing maintenance expenditures of $1,400 a year. But it is far more fuel-efficient than your old furnace and will reduce your consumption of heating oil by 4,200 gallons per year. Heating oil this year will cost $2 a gallon; the price per gallon is expected to increase by $0.50 a year for the next 3 years and then to stabilize for the foreseeable future. The furnace will last for 20 years, at which point it will need to be replaced and will have no salvage value. The discount rate is 12%.
A) What is the net present value of the investment in the furnace? (Do not round intermediate calculations. Round your answer to the nearest whole dollar.)
B) What is the IRR? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
C) What is the payback period? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
D) What is the equivalent annual cost of the furnace? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
E) What is the equivalent annual savings derived from the furnace? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
F) Compare the PV of the difference between the equivalent annual cost and savings to your answer to part (a). Are the two measures the same or is one larger?
Answers: 1
Mathematics, 21.06.2019 23:00
Erik buys 2.5 pounds of cashews. if each pound of cashews costs $7.70, how much will he pay for the cashews?
Answers: 1
Mathematics, 21.06.2019 23:10
Frank is lending $1,000 to sarah for two years. frank and sarah agree that frank should earn a real return of 4 percent per year. instructions: a. the cpi (times 100) is 100 at the time that frank makes the loan. it is expected to be 113 in one year and 127.7 in two years. what nominal rate of interest should frank charge sarah?
Answers: 3
Mathematics, 22.06.2019 00:30
Find the length of the radius of a circle with the center at -7+2i and a point in the circle at 33+11i
Answers: 1
A new furnace for your small factory will cost $45,000 and a year to install, will require ongoing m...
Mathematics, 10.11.2020 19:40
Geography, 10.11.2020 19:40
Mathematics, 10.11.2020 19:40
History, 10.11.2020 19:40
Mathematics, 10.11.2020 19:40
Mathematics, 10.11.2020 19:40
Chemistry, 10.11.2020 19:40
Chemistry, 10.11.2020 19:40
Mathematics, 10.11.2020 19:40
Mathematics, 10.11.2020 19:40
Mathematics, 10.11.2020 19:40
Social Studies, 10.11.2020 19:40