A) A few furnace for your small factory will cost $ 27000 a year to install and will require ongoing maintenance expenditures of $1500 a year. But it is far more fuel efficient than your old furnace
and will reduce your consumption of heating oil by 2400 gallons per year. Heating oil this year will cost $3
a gallon; the price per gallon is expected to increased by $0.5 a year for the next 3 years and then to stabilize
for the foreseeable future. The furnace will last for 20 years, at which point it will need to be replaced and
will have no salvage value. The discount rate is 8% .

i- What is the net present value of the investment in the furnace? (4)
ii- What is the IRR? (4)
iii- What is the payback period?

The following information relates to wagner, inc.: advertising costs $ 18 comma 600 administrative salaries 17 comma 800 delivery vehicle depreciation 1 comma 500 factory repair and maintenance 600 indirect labor 10 comma 000 indirect materials 18 comma 000 manufacturing equipment depreciation 3 comma 000 office rent 58 comma 000 president's salary 1 comma 100 sales revenue 600 comma 000 sales salary 5 comma 200 how much were wagner's period costs

Oakmont company has an opportunity to manufacture and sell a new product for a four-year period. the company’s discount rate is 18%. after careful study, oakmont estimated the following costs and revenues for the new product: cost of equipment needed $ 230,000 working capital needed $ 84,000 overhaul of the equipment in year two $ 9,000 salvage value of the equipment in four years $ 12,000 annual revenues and costs: sales revenues $ 400,000 variable expenses $ 195,000 fixed out-of-pocket operating costs $ 85,000 when the project concludes in four years the working capital will be released for investment elsewhere within the company. click here to view exhibit 12b-1 and exhibit 12b-2, to determine the appropriate discount factor(s) using tables.

Suppose that the firm cherryblossom has an orchard they are willing to sell today. the net annual returns to the orchard are expected to be $50,000 per year for the next 20 years. at the end of 20 years, it is expected the land will sell for $30,000. calculate the market value of the orchard if the market rate of return on comparable investments is 16%.