Hello, can you please solve this.

The XYZ firm produces video game consoles. If it purchases the console cases from a different company, the XYZ also needs to buy specialized equipment to reduce non compatibility problem. It is estimated that production rate of the gaming consoles is 23,815 units per week for 48 weeks of operation per year. The XYZ firm is planning to produce the consoles for seven years. The firm has two options to have the special equipment: make a part inhouse or to buy it. If XYZ chooses make a part inhouse option, it has annual labour costs: $1,445,633, annual incremental overhead costs: $1,088,110 and annual material costs: $2,048,511. If XYZ chooses to yj option, it has to pay $405,000 for a new machine, which has $45,000 estimate market value at the end of 7 years. Moreover, buy it option also requires annual operating costs such as labour costs: $251,951, incremental overhead costs: $822,719 and purchasing empty cases [$0.85funit) costs: $3,256,452. Assume that cash flows occur in discrete sums at the ends of years, and calculate the unit cost of myj option given MARR 10%. C a) None of the answers are correct b) Between $2.50 and $3.00 c} Between $1.00 and $1.50 d] Between $1.50 and $2.00 e) Between $3.50 and $4.00 f) Between $2.00 and $2.50 00000 An asset with a fixed investment cost of $100,000 is depreciated over a 7year period. and it is expected to have a $5,000 salvage value at the end of the 7 years. What is the book value in year 2 based on the BOYD method? 0 a) Between $33,700 and $40,000 0 [1) Between $45,200 and $45,500 0 0} Between $23,700 and $29,000 0 d) None of the answers are correct 0 e] Between $35,200 and $35,500 0 fl Between $25,200 and $25,500 Your company signed a contract to remove soil from govern mentowned property. This task requires a specic bulldozer to dig and load the material onto a transportation vehicle. There are two models of ripperbulldozer to consider: Model Alpha costs $200,000, and two units of model alpha would be required to remove the material within 2 years. Operating cost for each unit would run to $40,000 z'year for 2000 hours of operation. At this operational rate, the model would be operable for three years, at the end of which time it is estimated that the salvage value will be $50,000 for both machines. Model beta costs $240,000 each, has a life or 12,000 hours without any major overhaul, and costs $25,000 to operate for 2000 hours [ ya to complete the job within 2 years. The estimated market value of both model beta at the end of six years is $60,000. Once again, two units of model beta is required for this task. Since the lifetime of either model exceeds the requiredservice period of two years, you estimated that, after two years, the model unit alpha could be sold for $50,000 each and the model beta units for $100,000 each. Assuming that MARR is 20%, based on the net present worth analysis, find the cost difference between two options. 0 a) Between $14,000 and $16,000 0 0) Between $34,000 and $36,000 0 c}- Between $45,000 and $47,000 0 d) None of the answers are correct 0 e] Between $36,000 and $33,000 O f) Between $26,000 and $23,000 A dieselpowered generator with a cost of $60,000 is expected to have a useful operating life of 50,000 hours. The expected salvage value of this generator is $3,000. In its first operating year, the generator was operated 4,000 hours. Determine the depreciation for the year. Q 3) Between $6,400 and $6,600 0 h) None of the answers are correct 0 c} Between $3,600 and $3,300 0 d] Between $5,600 and $5,300 0 e) Between $4,000 and $4,200 O f) Between $5,100 and $5,300 You are considering four costreduction alternatives in your business. You have already had the information about the rates of return for these projects, along with some incremental rates of return: Incremental Investment Incremental Rate of Return (96} X2 X0 X3X0 X4 X0 2 X0 denotes the do-nothing alternative. The required investments are $420,000 for X1, $550,000 for X2, $720,000 for X3, and $800,000 for X4. If the MARR is 20%, what system should be selected? Oa)X1 Obj-X2 Ocixs Odim Consider the following two mutually exclusive investment projects: What is the net present worth difference between two machines if you use an infinite planning horizon with proiect repeatability? Assume i=5%. 0 3) Between $4,000 and $4,300 0 bl Between $4,600 and $4,900 0 c} Between $3,400 and $3,700 0 d] Between $2,700 and $3,000 0 e) Between $4,300 and $4,600 O f) None of the answers are correct Assume everythingi_sgiven in n=0, CONSTANT dollars unless otherwise stated: Hartstield Company is considering purchasing a set of machine tools at a cost of $60,000. The purchase is expected to generate revenues of $30,000, increasing by 11% each year directly due to increasing sales volumes (reminder: all values are given as constant dollar values}. The purchase of the tools will also lead to operating costs of $5,000 per year in each of the next three years. Additional profits will be taxed at a rate of 40%. The asset falls into CCA Class 45 (rate = 40%) for tax purposes and the 50% rule applies. The project has a three-year life. The constant-dollar market (re-sale] value of the machine tools is expected to be $15,000. The machine tools will be purchased 50% on debt (so 50% of the tools' cost will be borrowed]. The debt will be paid off in equal annual payments over the life of the project. The interest rate on the debt was negotiated at 11% annually. The general inflation rate is 8% per year (and affects everything that it normally affects). Assume inflation-free interest rate, i'=. Find the third year's net cash flow in constant dollars. 0 a} Between $39,000 and $41,000 0 b) None of the answers are correct 0 c} Between $31,000 and $33,000 0 d} Between $29,000 and $31,000 0 e] Between $33,000 and $35,000 O 1'} Between $37,000 and $39,000 Find the optimum annual equivalent cost for the defender using the following information: Current tradein [resale] value = $7,000, decreasing by $2000 from the previous year's value 0&M = $2,000 in year 1, increasing bv30% per year Immediate overhaul required (if kept) = $500 Maximum possible lifespan is 5 additional years of service {from now} Assume MARR = 10% O a) Between $6100 and $6300 0 b) Between $5000 and $5200 0 0} Between $6300 and $6500 0 d) Between $5500 and $5700 0 e] None of the answers are correct O f) Between $5300 and $5500 Assume everythingi_sgiven in n=0. CONSTANT dollars unless otherwise stated: Hartsfield Company is considering purchasing a set of machine tools at a cost of $80,000. The purchase is expected to generate revenues of $26,000. The purchase of the tools will also lead to higher operating costs of $6,000 per year in each of the next three years. Additional profits will be taxed at a rate of 40%. The asset falls into CCA Class 45 {rate = 20%) for tax purposes and the 50% rule applies. The project has a threeyear life. The constant-dollar market (resale) value of the machine tools is expected to fall by 30% annually. The company will require a working capital of $10,000 to be maintained in purchasing power over the lifetime of the project, and can be recovered at the time of the project's completion. The general inflation rate is 8% per year (and affects everything that it normally affe:ts}. Assume inflation-free interest rate, i'=. Find the Net Present worth in constant dollars. 0 3} Between -$11,100 and -$11,500 0 0) Between $6,700 and $7,100 0 cl Between $6,300 and $0,700 0 dl Between $13,100 and $13,500 0 e] None of the answers are correct 0 f} Between $9,300 and $9,700 For Defender, use Marginal analysis to find the Marginal Cost of the 4th year. Current tradein {resale) value = $5,000, decreasing at an annual rate of 20% from the previous year's value 0&M = $1000 in year 1, increasing by $500 per year MARR = 10% a) Between $3500 and $3700 b) Between $2300 and $2500 c) None of the answers are correct d] Between $3900 and $4100 e) Between $3200 and $3400 f) Between $2300 and $3000 OOOOOO An asset with a fixed investment cost of $200,000 is depreciated over a 7year period, and it is expected to have a $2,000 salvage value at the end of the 7 years. Using the straightline method, what is the book value in year 5? O a) Between $33,000 and $33,400 0 bl Between $31,900 and $32,300 0 c} None of the answers are correct 0 d] Between $58,300 and $58,700 0 e) Between $56,900 and $57,300 O f) Between $45,500 and $45,900 You purchased a residential home in which to locate your professional ofce for $150,000. Assume that the entire house is used for business. The appraisal (assessment) is divided into $30,000 for the land and $120,000 for the building. For the tax purposes, what is the undepreciated capital cost of the building [Suppose your property was sold at $187,000 at the end of fourth year of ownership}. CCA rate is given as 2%? O a) Between $103,000 and $106,000 0 b) Between $110,000 and $113,000 0 c:- Between $92,000 and $95,000 0 d) None of the answers are correct 0 e) Between $95,000 and $93,000 O f) Between $114,000 and $117,000