#1

A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,343.00 to install, $5,143.00 to operate per year for 7 years at which time it will be sold for $7,197.00. The second, RayCool 8, costs $41,701.00 to install, $2,179.00 to operate per year for 5 years at which time it will be sold for $8,991.00. The firms cost of capital is 6.60%. What is the equivalent annual cost of the AC360? Assume that there are no taxes.

Submit

Answer format: Currency: Round to: 2 decimal places.

#2

A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,098.00 to install, $5,147.00 to operate per year for 7 years at which time it will be sold for $6,822.00. The second, RayCool 8, costs $41,256.00 to install, $2,046.00 to operate per year for 5 years at which time it will be sold for $8,953.00. The firms cost of capital is 6.11%. What is the equivalent annual cost of the RayCool8? Assume that there are no taxes.

Submit

Answer format: Currency: Round to: 2 decimal places.

#3

A firm is must choose to buy the GSU-3300 or the UGA-3000. Both machines make the firms production process more efficient which in turn increases incremental cash flows. The GSU-3300 produces incremental cash flows of $25,524.00 per year for 8 years and costs $103,424.00. The UGA-3000 produces incremental cash flows of $27,596.00 per year for 9 years and cost $123,457.00. The firms WACC is 7.78%. What is the equivalent annual annuity of the GSU-3300? Assume that there are no taxes.

Submit

Answer format: Currency: Round to: 2 decimal places.

#4

A firm is must choose to buy the GSU-3300 or the UGA-3000. Both machines make the firms production process more efficient which in turn increases incremental cash flows. The GSU-3300 produces incremental cash flows of $26,782.00 per year for 8 years and costs $101,014.00. The UGA-3000 produces incremental cash flows of $28,725.00 per year for 9 years and cost $124,242.00. The firms WACC is 8.41%. What is the equivalent annual annuity of the UGA-3000? Assume that there are no taxes.

Submit

Answer format: Currency: Round to: 2 decimal places.

answer all please!!!!