Your company decides to invest in a project to purchase and install an automated data processing machine for a supplier. The company that is selling the automated data processing machine has specified that the automated data processing machine needs to last forever, and will always be operational. The associated costs for the machine are shown in the table below. How much should you charge your supplier for the automated data processing machine in order to install and maintain the perpetual project? Interest rate is 5%. Costs Amount Year Incurred Initial Cost Year o $160,000 $55,000 Year 1 One-time Setup Cost Annual Operating & Maintenance Costs $8,00 Per year, forever Major Maintenance Costs $30,000 First in Year 4, then every 4 years forever Question 5 Part D: What is the equation used to find the Capitalized Cost? Nonrecurring Cost - Recurring Cost + Annual Cost Capitalized Cost = Nonrecurring Cost + Recurring Cost + Annual Cost Capitalized Cost + Annual Cost - Nonrecurring Cost + Recurring Cost Annual Cost = Nonrecurring Cost + Recurring Cost Your company decides to invest in a project to purchase and install an automated data processing machine for a supplier. The company that is selling the automated data processing machine has specified that the automated data processing machine needs to last forever, and will always be operational. The associated costs for the machine are shown in the table below. How much should you charge your supplier for the automated data processing machine in order to install and maintain the perpetual project? Interest rate is 5%. Costs Amount Year Incurred Initial Cost Year $160,000 $55,000 Year 1 One-time Setup Cost Annual Operating & Maintenance Costs $8,00 Per year, forever Major Maintenance Costs $30,000 First in Year 4, then every 4 years forever Question 5 Part E: Provide the cost for the project. Enter your answer in the form 123456 Your company decides to invest in a project to purchase and install an automated data processing machine for a supplier. The company that is selling the automated data processing machine has specified that the automated data processing machine needs to last forever, and will always be operational. The associated costs for the machine are shown in the table below. How much should you charge your supplier for the automated data processing machine in order to install and maintain the perpetual project? Interest rate is 5%. Costs Amount Year Incurred Initial Cost $160,000 Year o $55,000 Year 1 One-time Setup Cost Annual Operating & Maintenance Costs $8,00 Per year, forever Major Maintenance Costs $30,000 First in Year 4, then every 4 years forever Question 5 Part F: Choose the most correct statement. In order to install and maintain the perpetual project I should charge my supplier (the amount from Part E) now. In order to install and maintain the perpetual project that will always be running with an interest rate of 5%, I should charge my supplier (the amount from Part E). I should charge my supplier (the amount from Part E). In order to install and maintain the perpetual project that will always be running with an interest rate of 5%, I should charge my supplier (the amount from Part E) now
