#1 unanswered A firm is considering replacing the existing industrial air conditioning unit. They will...
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#1 unanswered A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,781.00 to install, $5,110.00 to operate per year for 7 years at which time it will be sold for $6,997.00. The second, RayCool 8, costs $41,650.00 to install, $2,061.00 to operate per year for 5 years at which time it will be sold for $9,004.00. The firm's cost of capital is 6.23%. What is the equivalent annual cost of the AC360? Assume that there are no taxes. not_submitted Attempts Remaining: Infinity Submit Answer format: Currency: Round to: 2 decimal places. unanswered A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,599.00 to install, $5,161.00 to operate per year for 7 years at which time it will be sold for $6,802.00. The second, RayCool 8, costs $41,506.00 to install, $2,187.00 to operate per year for 5 years at which time it will be sold for $9,028.00. The firm's cost of capital is 6.18%. What is the equivalent annual cost of the RayCool8? Assume that there are no taxes. not_submitted Attempts Remaining: Infinity Submit Answer format: Currency: Round to: 2 decimal places. unanswered 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 $25,304.00 per year for 8 years and costs $100,931.00. The UGA-3000 produces incremental cash flows of $29,463.00 per year for 9 years and cost $124,262.00. The firm's WACC is 7.26%. What is the equivalent annual annuity of the GSU-3300? Assume that there are no taxes. not submitted Attempts Remaining: Infinity Submit Answer format: Currency: Round to: 2 decimal places. #4 C 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 $25,560.00 per year for 8 years and costs $100,620.00. The UGA-3000 produces incremental cash flows of $29,690.00 per year for 9 years and cost $124,437.00. The firm's WACC is 9.88%. What is the equivalent annual annuity of the UGA-3000? Assume that there are no taxes. unanswered not_submitted Attempts Remaining: Infinity Submit
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