Post your comments on the following problem. This problem is not taught in the textbook but...
Suppose SUNY Oswego needs to purchase a new Central AC for the Rich Hall. There are two choices, the first system costs $50,000 and is expected to last 10 years, and the second system costs $72,000 and is expected to last 15 years. Assume that the opportunity cost of capital is 10 percent. Which air-conditioning system should SUNY Oswego purchase?
Suppose SUNY Oswego needs to purchase a new Central AC for the Rich Hall. There are two choices, the first system costs $50,000 and is expected to last 10 years, and the second system costs $72,000 and is expected to last 15 years. Assume that the opportunity cost of capital is 10 percent. Which air-conditioning system should SUNY Oswego purchase?
Crane Lumber, Inc., is considering purchasing a new wood saw that costs $50,000. The saw will generate revenues of $100.000 per year for five years. The cost of materials and labor needed to generate these revenues will total 60.000 per year and other cash expenses will be $10.000 per year. The machine is expected to for $2.100 the end of its free year and will be deprecated on a strach-line basis over five years to crea te is 30 percent...
Problem 15 Marita Lo desires to purchase a new front office computer system for her Lo Motel (LOMO) After considerable discussion with purveyors, she has narrowed her choices to systems sold by ABC Company and XYZ Computers. The system proposed by each company is expected to have a useful life of seven years. She believes the alternative systems are equivalent for providing services required by the LOMO; therefore, her focus is cost. The associated costs of each system are as...
Your answer is partially correct. Crane Lumber, Inc., is considering purchasing a new wood saw that costs $55,000. The saw will generate revenues of $100,000 per year for five years. The cost of materials and labor needed to generate these revenues will total $60,000 per year, and other cash expenses will be $10,000 per year. The machine is expected to sell for $4,800 at the end of its five-year life and will be depreciated ona straight-line basis over five years...
Please draw cash flow digram please Problem 1 Aerotron Electronics is considering the purchase of a water filtration system to assist in circuit board manufacturing. The system costs $40,000. It has an expected life of 7 years at which time its salvage value will be $7,500. Operating and maintenance expenses are estimated to be $2,000 per year. If the filtration system is not purchased, Aerotron Electronics will have to pay Bay City $12,000 per year for water purification. If the...
Problem 10-27 Comparing Mutually Exclusive Projects (L04) Vandelay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $3,300,000 and will last for six years. Variable costs are 40 percent of sales, and fixed costs are $440,000 per year. Machine B costs $5,572,000 and will last for nine years. Variable costs for this machine are 35 percent of sales and fixed costs are $285,000 per year. The sales for each machine will be...
Aero tron F ec ronis is cont denng the purchase of a water filtration system t assist in circuit board manu ac uring. The system costs $50,000 t has an expected e of 7 years at which time its salvage vaue will be $7,500ロperating and maintenance expenses are estimated to be $16,000 per year. If the filtration system is not purchased, Aerotran Electronics will have to pay Bay City $18,000 per year for water purificatian. If the system is purchased,...
Problem 5-1 (Algo) Analysis of alternatives (LO5-3, 5-8) Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two types of machines that would be appropriate are presently on the market. The company has determined the following: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Machine A could be purchased for $55,000. It will last 10 years...
Help Save & Exit Problem 10-27 Comparing Mutually Exclusive Projects (L04] 10 Vandelay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $3,140,000 and will last for six years. Variable costs are 36 percent of sales and fixed costs are $280,000 per year. Machine B costs $5,364,000 and will last for nine years. Variable costs for this machine are 31 percent of sales and fixed costs are $205,000 per year. The sales...