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Really need help please and thank you! Afirm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The
Really need help please and thank you!
Afirm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,730.00 to install, $5,176.00 to operate per year for 7 years at which time it will be sold for $6,842.00 The second, RayCool 8, costs $41,037.00 to install, $2,016.00 to operato per year for 5 years at which time it will be sold for $8,956.00. The firm's cost of capital is 6.83% What is the equivalent annual cost of the AC 3607 Assume that there are no taxos Submit Answer format: Currency: Round to: 2 decimal places 22 #2 A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,796.00 to install, $5,197.00 to operate per year for 7 years at which time it will be sold for $6,882.00. The second, RayCool 8, costs $41,219.00 to install, $2.171.00 to operate per year for 5 years at which time it will be sold for $9,042.00. The firm's cost of capital is 5 21%. What is the equivalent annual cost of the RayCool8? Assume that there are no taxes Submit Answer format: Currency: Round to: 2 decimal places 93 A firm is must choose to buy the GSU-3300 or the UGA-3000 Both machines make the firm's production process more officient which in turn increases incromental cash flows. The GSU-3300 produces incremental cash flows of $25,764.00 per year for 8 years and costs $101742.00. The UGA-3000 produces incremental cash flows of $29,950,00 per year for 9 years and cost $125,568.00. The firm's WACC is 9.90%. What is the equivalent annual annuity of the GSU-3300? Assume that there are no taxes B A firm is must choose to buy the GSU-3300 or the UGA-3000. Both machines make the firm's production process more efficient which in tur increases incremental cash flows, The GSU-3300 produces incremental cash flows of $25,764.00 per year for 8 years and costs $101,742.00. The UGA-3000 produces incremental cash flows of $29,950.00 per year for 9 years and cost $125,568.00. The firm's WACC is 9,90% What is the equivalent annual annuity of the GSU-33007 Assume that there are no taxes. Submit Answer format: Currency: Round to: 2 decimal places. A firm is must choose to buy the GSU-3300 or the UGA-3000. Both machines make the firm's production process more efficient which in turn increases incremental cash flows. The GSU-3300 produces incremental cash flows of $26,274.00 per year for 8 years and costs $99,098.00. The UGA-3000 produces incremental cash flows of $29,279.00 per year for 9 years and cost $123,297.00. The firm's WACC IN 0,63% What is the equivalent annual annuity of the UGA-3000? Assume that there are no taxes, Submit Answer formar: Currency Round to 2 decimal places Step by Step Solution
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