Champion Bakers uses specialized ovens to bake its bread. One oven costs $840,000 and lasts about...
Champion Bakers uses specialized ovens to bake its bread. One oven costs $840,000 and lasts about 3 years before it needs to be replaced. The annual operating cost per oven is $10,000. What is the equivalent annual cost of an oven if the required rate of return is 11 percent? (Round your answer to whole dollars)
|
$-359,381 |
||
|
$-348,281 |
||
|
$-864,437 |
||
|
$-353,739 |
Homework Answers
Present value of operating costs = 10,000 * PVAF( 11% , 3 years) = 10,000*2.44371 = 24437.1
Total of the present value = 840,000 + 24437.1 = 864437.1
EAC = 864437.1 / PVAF of $1( 11%, 3 years) = 864437.1 /2.44371 = 353,739
Option $- 353,739
Add Answer to:
Champion Bakers uses specialized ovens to bake its bread. One
oven costs $840,000 and lasts about...
Champion Bakers uses specialized ovens to bake its bread One oven costs $860,000 and lasts about...
Champion Bakers uses specialized ovens to bake its bread One oven costs $860,000 and lasts about 3 years before it needs to be replaced The annual operating cost per oven is $11,000 What is the equivalent annual cost of an oven if the required rate of return is 9 percent? (Round your answer to whole dollars) $-356,474 $-344,484 O $-352,48 O $ 328,388 $350,747 Network 3 items DK
Champion Bakers uses specialized ovens to bake its bread. One oven costs $870,000 (in Year O)and...
Champion Bakers uses specialized ovens to bake its bread. One oven costs $870,000 (in Year O)and lasts 3 years before it needs to be replaced. The annual operating cost per oven (Years 1 through 3) is $9,000. What is the equivalent annual cost of an oven if the appropriate discount rate is 10 percent? (Round your final answer to the nearest dollar) Ο $-363,721 Ο $-360,431 Ο $-353,821 Ο $-358,840 Ο $-340,511
18. Country Breads uses specialized ovens to bake its bread. One oven costs $189,000 and lasts...
18. Country Breads uses specialized ovens to bake its bread. One oven costs $189,000 and lasts about seven years before it needs to be replaced. The annual operating cost per oven is $23,800. What is the equivalent annual cost of an oven if the required rate of return is 11 percent? A. B. $63,908.69 $43,908.69 $83,908.69 $73,908.69 $3,908.69 C. D. E.
Jackson & Sons uses packing machines to prepare its products for shipping. One machine costs $397,500...
Jackson & Sons uses packing machines to prepare its products for shipping. One machine costs $397,500 and lasts 5 years before it needs replaced. The machine will be worthless after the 5 years. The annual aftertax operating cost per machine is $38,400. What is the equivalent annual cost of one machine if the required rate of return is 16 percent? Please show the steps so that I can learn from what I am doing wrong. Thanks!
Assume a machine costs $598,000 and lasts eight years before it is replaced. The operating cost...
Assume a machine costs $598,000 and lasts eight years before it is replaced. The operating cost is $119,600 a year. Ignore taxes. What is the equivalent annual cost if the required rate of return is 13 percent? (Hint: the EAC should account for both initial investment and annual operating costs) $225,814.72 $236,071.33 $244,215.26 $257,310.05 $268,799.94
Joey's Pizza Parlor is considering the purchase of a large oven and related equipment for mixing and baking Joey's Favorite Bread. The oven and equipment would cost $150,000 delivered and installed. It would be usable for about 15 years, after which it wo
Joey's Pizza Parlor is considering the purchase of a large oven and related equipment for mixing and baking Joey's Favorite Bread. The oven and equipment would cost $150,000 delivered and installed. It would be usable for about 15 years, after which it would have a 10% scrap value.The following additional information is available.Joey estimates that the purchase of the oven and equipment would allow the pizza parlor and restaurant to bake and sell 90,000 loaves of crazy bread each year....
Problem 1 The Gabriel Co. is considering a 7-year project that would require a cash outlay...
Problem 1 The Gabriel Co. is considering a 7-year project that would require a cash outlay of $140,000 for machinery and an additional $30,000 for working capital that would be released at the end of the project. The equipment would be depreciated evenly over the 7 years and have a salvage value of $ 7,000 at the end of 7 years. The project would generate before tax annual cash inflows of $41,500. The tax rate is 20% and the company's...
Show all work. Highlight final answer. DO NOT answer questions if you cannot answer them all....
Show all work. Highlight final answer. DO NOT answer
questions if you cannot answer them all.
15. Automated Manufacturers uses high-tech equipment to produce specialized aluminum products for its customers. Each one of these machines costs $1,480,000 to purchase plus an additional $52,000 a year to operate. The machines have a 6-year life after which they are worthless. What is the equivalent annual cost of one these machines if the required return is 16 percent? (a) -S453,657 (b) -$427,109 (c)...
CCC Conglomerates is analyzing two machines to determine which one it should purchase. Whichever machine is...
CCC Conglomerates is analyzing two machines to determine which one it should purchase. Whichever machine is purchased will be replaced at the end of its useful life. The company requires a 12 percent rate of return and uses straight-line depreciation to a zero book value over the life of the machine. Machine A has a cost of $378,000, annual operating costs of $22,000, and a 3-year life. Machine B costs $257,000, has annual operating costs of $43,000, and a 2-year...
Because of its inability to control film and personnel costs in its radiology department, Sanger General...
Because of its inability to control film and personnel
costs in its radiology department, Sanger General Hospital wants to
replace its existing picture archive and communication (PAC) system
with a newer version. The existing system, which has a current book
value of $2,250,000, was purchased three years ago for $3,600,000
and is being depreciated on a straight-line basis over an
eight-year life to a salvage value of $0. This system could be sold
for $800,000 today. The new PAC system...
Champion Bakers uses specialized ovens to bake its bread One oven costs $860,000 and lasts about 3 years before it needs to be replaced The annual operating cost per oven is $11,000 What is the equivalent annual cost of an oven if the required rate of return is 9 percent? (Round your answer to whole dollars) $-356,474 $-344,484 O $-352,48 O $ 328,388 $350,747 Network 3 items DK
Champion Bakers uses specialized ovens to bake its bread. One oven costs $870,000 (in Year O)and lasts 3 years before it needs to be replaced. The annual operating cost per oven (Years 1 through 3) is $9,000. What is the equivalent annual cost of an oven if the appropriate discount rate is 10 percent? (Round your final answer to the nearest dollar) Ο $-363,721 Ο $-360,431 Ο $-353,821 Ο $-358,840 Ο $-340,511
18. Country Breads uses specialized ovens to bake its bread. One oven costs $189,000 and lasts about seven years before it needs to be replaced. The annual operating cost per oven is $23,800. What is the equivalent annual cost of an oven if the required rate of return is 11 percent? A. B. $63,908.69 $43,908.69 $83,908.69 $73,908.69 $3,908.69 C. D. E.
Show all work. Highlight final answer. DO NOT answer
questions if you cannot answer them all.
15. Automated Manufacturers uses high-tech equipment to produce specialized aluminum products for its customers. Each one of these machines costs $1,480,000 to purchase plus an additional $52,000 a year to operate. The machines have a 6-year life after which they are worthless. What is the equivalent annual cost of one these machines if the required return is 16 percent? (a) -S453,657 (b) -$427,109 (c)...
Because of its inability to control film and personnel
costs in its radiology department, Sanger General Hospital wants to
replace its existing picture archive and communication (PAC) system
with a newer version. The existing system, which has a current book
value of $2,250,000, was purchased three years ago for $3,600,000
and is being depreciated on a straight-line basis over an
eight-year life to a salvage value of $0. This system could be sold
for $800,000 today. The new PAC system...
Most questions answered within 3 hours.
-
An entomologist discovers a dung beetle rolling a ball of dung
along the ground, and decides...
asked 1 hour ago -
Humans have used horses for transportation for millions of
years. Therefore, they will use horses for...
asked 3 hours ago -
The following are the Jensen Corporation's unit costs of making
and selling an item at a...
asked 3 hours ago -
Does direct Medicare reimbursement of Advanced practice nurses
increase access to their services?
asked 4 hours ago -
List and explain why a company would choose to use a
published
compensation survey vs. creating...
asked 4 hours ago -
A discrete random variable X can take values from 1 to 10. Find
the variance of...
asked 4 hours ago -
The primary financial goal of a corporation is to maximize:
shareholders wealth.
earnings per share.
stock...
asked 5 hours ago -
determine whether the vectors u=(1,2,3,), v=(-2,1,0) and
w=(1,0,1) are linearly dependent or independent.
asked 5 hours ago -
python
Define a function called print_values which takes a dictionary
object as a parameter. The function...
asked 6 hours ago -
In Chapter 1 you created a program named Triangle in
which you displayed a seven-line triangle...
asked 6 hours ago -
Research question: What are the differences between separately
stated and non separately stated transactions in an...
asked 6 hours ago -
By using Arduino write a code that connects two LEDs to two
push-buttons. Each button controls...
asked 7 hours ago