Questions:
1. Find the capitalized cost of a present cost of $330,273, annual costs of $41,182, and periodic costs every 5 years of $75,087. Use an interest rate of 10% per year.
2. Humana hospital corporation installed a new MRI machine at a cost of $750,000 this year in its medical professional clinic in cedar park. This state of art system is expected to be used for 5 years and then sold for $75,000. Humana uses a return requirement of 24% per year for all of its medical diagnostic equipment. As a bioengineering student currently serving a coop semester on the management staff of Humana corporation in Louisville, Kentucky, you are asked to determine the minimum revenue required each year to realize the expected recovery and return.
3. Nissan's all electric car, the leaf, has a base price of $32,780 in the united states, but it is eligible for $7,500 federal tax credit. Consulting engineering company wants to evaluate the purchase or lease of one of the vehicles for use by its employees traveling to job sites in the local area. The cost of leasing will be $4,200 per year (payable at the end of each year) after an initialization charge of $2,500 paid now. If the company purchases the vehicle, it will also purchase a home charging station for $2,200 that will be partially offset by 50% tax credit. If the company expects to be able to sell the car and the charging station for 40% of the base price of the car alone at the end of the 3 years. What is the present worth of purchasing the car, use an interest rate of 10% per year.
4. Nissan's all electric car, the leaf, has a base price of $32,780 in the united states, but it is eligible for $7,500 federal tax credit. Consulting engineering company wants to evaluate the purchase or lease of one of the vehicles for use by its employees traveling to job sites in the local area. The cost of leasing will be $4,200 per year (payable at the end of each year) after an initialization charge of $2,500 paid now. If the company purchases the vehicle, it will also purchase a home charging station for $2,200 that will be partially offset by 50% tax credit. If the company expects to be able to sell the car and the charging station for 40% of the base price of the car alone at the end of the 3 years. What is the present worth of leasing the car, use an interest rate of 10% per year.
5. Nissan's all electric car, the leaf, has a base price of $[32,780] in the united states, but it is eligible for $7,500 federal tax credit. Consulting engineering company wants to evaluate the purchase or lease of one of the vehicles for use by its employees traveling to job sites in the local area. The cost of leasing will be $4,200 per year (payable at the end of each year) after an initialization charge of $2,500 paid now. If the company purchases the vehicle, it will also purchase a home charging station for $2,200 that will be partially offset by 50% tax credit. If the company expects to be able to sell the car and the charging station for 40% of the base price of the car alone at the end of the 3 years. Should the company purchase or lease the car, use an interest rate of 10% per year.
1. Lease the car
2. Purchase the car
6. Compare two alternatives for security system surrounding a power distribution substation using annual worth analysis and an interest rate of 10% per year.
Condi Torro first cost ($) -25,000 [-130,000] annual cost ($) -9,000 [-2,500] salvage value ($) 3,000 [150,000] life (years) 3 infinity
What is annual worth of alternative (Condi)
7. Compare two alternatives for security system surrounding a power distribution substation using annual worth analysis and an interest rate of 10% per year.
Condi Torro first cost ($) [-25,000] -130,000 annual cost ($) [-9,000] -2,500 salvage value ($) [3,000] [150,000] life (years) 3 infinity
What is annual worth of alternative (Torro)
8. Compare two alternatives for security system surrounding a power distribution substation using annual worth analysis and an interest rate of 10% per year.
Condi Torro first cost ($) [-25,000] [-130,000] annual cost ($) [-9,000] [-2,500] salvage value ($) [3,000] [150,000] life (years) 3 infinity
Which alternative should be selected?
1. Select Torro
2. Select Condi