The a Canton Movie Theatre is considering selling its old popcorn machine and replacing it with...
Nikky Co. is considering replacing an old machine with a new one. The old one was purchased 3 years ago for $200,000. It is depreciated straight-line to zero over its 10-year life. It is expected to be worth of 85,000 three years later. If Nikky sells it today, Nikky should receive $150,000 for the old machine. The new machine costs $300,000. It has a life of 5 years and will be depreciated straight-line to zero over its 5-year life. It...
Machine replacement decision EX 24-9 A company is considering replacing an old piece of machinery, which cost $600,000 and has $350,000 of accumulated depreciation to date, with a new machine that costs $485,000 The old equipment could be sold for $63,000. The annual variable production costs as sociated with the old machine are estimated to be $157,000 per year for eight years. The annual variable production costs for the new machine are estimated to be $100,500 per year for eight...
2. Texas Tires is considering replacing an old machine with a new, more efficient, one. The new machine will cost $1.2 million. The old machine originally cost $665,000 4 years ago and was being depreciated straight line over a 7 year life. The old machine can now be sold for $312,000. The firm has a 30 % tax rate. Calculate the initial outlay on the new machine.
Purinton Company is considering replacing a metal cutting machine with a newer model. Here are the data the management accountant prepares for the existing (old) machine and the replacement (new) machine: Old New Original Cost $1,000,000 $600,000 Useful Life 5 Years 2 Years Current Age 3 Years 0 Years Remaining Useful Life 2 Years 2 Years Accumulated Depreciation $600,000 n.a. Current Disposal Value $40,000 n.a. Terminal Disposal Value $0 $0 Annual Operating Costs $800,000 $460,000 Annual Revenues $1,100,000 $1,100,000 Purinton...
Machine Replacement Decision A company is considering replacing an old piece of machinery, which cost $597,100 and has $348,000 of accumulated depreciation to date, with a new machine that has a purchase price of $484,500. The old machine could be sold for $64,000. The annual variable production costs associated with the old machine are estimated to be $156,000 per year for eight years. The annual variable production costs for the new machine are estimated to be $100,100 per year for...
Machine Replacement Decision Creekside Products Inc. is considering replacing an old piece of machinery, which cost $2,495,000 and has $1,463,000 of accumulated depreciation to date, with a new machine that costs $1,876,000. The old machine could be sold for $296,000. The annual variable production costs associated with the old machine are estimated to be $681,000 for eight years. The annual variable production costs for the new machine are estimated to be $463,100 for eight years. a. Determine the total and...
Machine Replacement Decision Creekside Products Inc. is considering replacing an old piece of machinery, which cost $2,916,000 and has $1,710,000 of accumulated depreciation to date, with a new machine that costs $2,192,800o. The old machine could be sold for $346,400. The annual variable production costs associated with the old machine are estimated to be $748,900 for eight years. The annual variable production costs for the new machine are estimated to be $494,300 for eight years. a. Determine the total and...
Q4) Your corporation is considering replacing equipment. The old machine is fully depreciated and cost $61,745.00 seven years ago. The old equipment currently has no market value. The new equipment cost $82,723.00. The new equipment will be depreciated to zero using straight-line depreciation for the four- year life of the project. At the end of the project the equipment is expected to have a salvage value of $22,429.00. The new equipment is expected to save the firm $29,214.00 annually by...
Machine Replacement Decision A company is considering replacing an old piece of machinery, which cost $600,200 and has $351,800 of accumulated depreciation to date, with a new machine that has a purchase price of $483,400. The old machine could be sold for $64,700. The annual variable production costs associated with the old machine are estimated to be $156,600 per year for eight years. The annual variable production costs for the new machine are estimated to be $102,400 per year for...
Machine Replacement Decision A company is considering replacing an old piece of machinery, which cost $599,300 and has $352,900 of accumulated depreciation to date, with a new machine that has a purchase price of $486,400. The old machine could be sold for $62,600. The annual variable production costs associated with the old machine are estimated to be $156,800 per year for eight years. The annual variable production costs for the new machine are estimated to be $99,400 per year for...