Question

A high speed electronic assembly machine was purchased two years ago for RM500, 000. At the present time, it can be sold for RM250,000 and replaced by a newer model havinga purchase price of RM420,500; or it can be kept in service for a maximum of one more year. The new assembly machine, if purchased, has a useful life of not more than two years. The projected resale values and operating, and maintenance costs for the Machine A and the Machine B are shown in the Table Q5 on a year-by-year basis. If the before-tax MARR is 15%, when should the old assembly machine be replaced? Use the following table for your analysis. Jadual S5/Table Q5 Mesin A Machine A Mesin EB Machine B Nilai pasaran Kos Operasi & Tahun Nilai pasaran Kos Operasi & Year Market value Penyelengaraan Market value Penyelengaraan Operation & Maintenance Costs Operation & Maintenance Costs RM 425,500 RM 310,000 RM 250,000 RM 250,000 RM 170,000 RM 140,000 RM 100,000 RM 125,000 2 (6 markah/marks)For the (420500), the real value is in the table which is 425500.

0 0
Add a comment Improve this question Transcribed image text
Know the answer?
Add Answer to:
For the (420500), the real value is in the table which is 425500. A high speed...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Question 4 a) Tiga projek kerja-kerja awam yang saling eksklusif, Alpha, Gamma dan Beta kini sedang...

    Question 4 a) Tiga projek kerja-kerja awam yang saling eksklusif, Alpha, Gamma dan Beta kini sedang dipertimbangkan bagi menyediakan prasarana kemudahan awam melalui peruntukan Rancangan Malaysia Kesebelas, RMK11. Kos dan faedah masing- masing projek dimasukkan ke dalam Jadual S4(a) di bawah. Setiap projek mempunyai hayat berguna selama 50 tahun, dan MARR adalah 10% setahun. Projek yang manakah antara projek-projek ini harus dipilih sebagai project terbaik mengikut peruntukan yang disediakan? (Nota: Gunakan prosedur nisbah B-C peningkatan) Three mutually exclusive alternative public-works...

  • CONFIDENTIA BFF/BFM/151611/BFF1922 QUESTION 3 (25 MARKS) The projected market value and operation & maintenance (O&M) costs...

    CONFIDENTIA BFF/BFM/151611/BFF1922 QUESTION 3 (25 MARKS) The projected market value and operation & maintenance (O&M) costs associated with a presently owned machine are shown in Table 3. An outside vendor of services has offered to provide the service of the existing machine at a fixed price per year. If the presently owned machine is replaced now, the cost of the fixed-price contract will be RM330,000 for each of the next 3 years. If the presently owned machine is replaced next...

  • Pada 31 Disember 2017, Mahligai Berhad mempunyai baki aset loji dan susut nilai terkumpul adalah seperti...

    Pada 31 Disember 2017, Mahligai Berhad mempunyai baki aset loji dan susut nilai terkumpul adalah seperti berikut: At 31 December 2017, Mahligai Berhad's plant asset and accumulated depreciation accounts had the following balances: Aset bukan semasal Non- current Assets Nilai/Value Susut nilai terkumpull Accumulated depreciation RM RM Kaedah susut Hayat nilail bergunal Depreciation Useful life method Tahun/Years Tanah/Land 175,000 Bangunan/Buildings 1,500,000 240,000 Jentera/Machinery 1,125,000 225,000 Garis Lurus Straight line Garis Lurus Straight line Garis Lurus Straight line 10 Paten/Patent 500,000...

  • A high-speed electronic assembly machine was purchased two years ago for $50,000. At the present ...

    A high-speed electronic assembly machine was purchased two years ago for $50,000. At the present time, it can be sold for $26,000 and replaced by a newer model having a purchase price of $42,500; or it can be kept in service for a maximum of one more year. The new assembly machine, if purchased, has a useful life of not more than two years. If the before-tax MARR is 18%, when should the old assembly machine be replaced? Use the...

  • Over the next 3 years a road paving company is considering replacing their existing grading machine...

    Over the next 3 years a road paving company is considering replacing their existing grading machine which was purchased 5 years ago for $950,000. Depreciation of the grading machine follows a straight line depreciation model with a predicted salvage value of $150,000 three years from now. The operation and maintenance costs of the grading machine have been increasing and are expected to be $20,000 next year, $30,000 two years from now and $50,000 three years from now. The company uses...

  • Question 4 Tenaga Engineering Sdn Bhd is a medium size engineering company which undertakes contract Jobs...

    Question 4 Tenaga Engineering Sdn Bhd is a medium size engineering company which undertakes contract Jobs for construction companies. All jobs pass through its three production departments: fabrication, assembly and finishing. The Company has two service departments: stores & maintenance. The typical annual cost and other data for the production and service department is shown in the table below: Tenaga Engineering Sdn Bhd - Cost and Other data Production Departments Cost Items (RM) Fabrication Assembly Direct labour 60,000 45,000 Indirect...

  • Case 27 To Use or Not to Use? Beaufort Sea Production Company (BSPC) operates a medium-sized...

    Case 27 To Use or Not to Use? Beaufort Sea Production Company (BSPC) operates a medium-sized oil field on Alaska’s north coast. The field is still producing at its maximum rate, 325,000 barrels of oil per day (BOPD). However, to sustain this rate the company started a waterflood of the reservoir two years ago. Now a capacity bottleneck in the water disposal process is threatening to curtail production. In waterflooding, salt water from the Beaufort Sea is treated to remove...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT