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Would greatly appreciate any help, especially if you do anything extra I will deifnitely give thumbs up!!! A firm is considering replacing the existing industrial
Would greatly appreciate any help, especially if you do anything extra I will deifnitely give thumbs up!!!
A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,171.00 to install, 55, 139.00 to operate per year for 7 years at which time it will be sold for $6,921.00 The second, RayCool 8, costs 541,702,00 to install, 52,086.00 to operate per year for 5 years at which time it will be sold for $8,998.00. The firm's cost of capital is 5.10%. What is the equivalent annual cost of the AC360? Assume that there are no taxes Submit Answer format: Currency: Round to: 2 decimal places A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,318.00 to install, $5,081.00 to operate per year for 7 years at which time it will be sold for $7,136.00 The second, RayCool 8, costs $41,894.00 to install, 52,040.00 to operate per year for 5 years at which time it will be sold for 58,918.00. The firm's cost of capital is 5 70% What is the equivalent annual cost of the RayCool8? Assume that there are no taxes Submit Answer format: Currency: Round to 2 decimal places 13 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 S26,674.00 per year for 8 years and costs $104,926.00 The UGA-3000 produces incremental cash flows of S29,347.00 per year for 9 years and cost $125,786.00. The firm's WACC is 8.68% 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 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 turn increases incremental cash flows The GSU-3300 produces incremental cash flows of 525 641,00 per year for 8 years and costs $103,660 00 The UGA-3000 produces incremental cash flows of S29 289.00 per year for 9 years and cost $126,338,00. The firm's WACC is 3.40% What is the equivalent annual annuity of the UGA-3000? Assume that there are no axes Step by Step Solution
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