Question

1 2 4 5 6 7 Moving to another question will save this response Question 6 Question 67 10 points One of two methods must be us
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Solution : Given that Method A cost = $80,000 Initially Salvage = $ 15,000 after 3 years operating cost = $30,000 per year Me2 b. Pul of Method B Pul = $120,000 + 8000 (PA, 12*10,3) $40,000 (PlF1 1210,3) = $ 129000 + 8000 (2.408312682) - $40,000 (0.7

Add a comment
Know the answer?
Add Answer to:
1 2 4 5 6 7 Moving to another question will save this response Question 6...
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
  • Required information One of two methods must be used to produce expansion anchors. Method A costs...

    Required information One of two methods must be used to produce expansion anchors. Method A costs $50,000 initially and will have a $11,000 salvage value after 3 years. The operating cost with this method will be $40,000 per year. Method B will have a first cost of $125,000, an operating cost of $11,000 per year, and a $50,000 salvage value after its 3-year life. The interest rate for both the methods is 12%. Which method should be used on the...

  • One of two methods must be used to produce expansion anchors. Method A costs $55,000 initially and will have a $6,000 sa...

    One of two methods must be used to produce expansion anchors. Method A costs $55,000 initially and will have a $6,000 salvage value after 3 years. The operating cost with this method will be $30,000 per year. Method B will have a first cost of $110,000, an operating cost of $6,000 per year, and a $39,000 salvage value after its 3-year life. The interest rate for both the methods is 10%. Which method should be used on the basis of...

  • One of two methods must be used to produce expansion anchors. Method A costs $70,000 initially and will have a $9,000 sa...

    One of two methods must be used to produce expansion anchors. Method A costs $70,000 initially and will have a $9,000 salvage value after 3 years. The operating cost with this method will be $33,000 per year. Method B will have a first cost of $125,000, an operating cost of $9,000 per year, and a $42,000 salvage value after its 3-year life. The interest rate for both the methods is 13%.

  • One of two methods must be used to produce expansion anchors. Method A costs $50,000 initially...

    One of two methods must be used to produce expansion anchors. Method A costs $50,000 initially and will have a $20,000 salvage value after 3 years. The operating cost with this method will be $29,000 per year. Method B will have a first cost of $105,000, an operating cost of $20,000 per year, and a $38,000 salvage value after its 3-year life. The interest rate for both the methods is 15%. Which method should be used on the basis of...

  • Two methods can be used to produce expansion anchors. Method A costs $90,000 initially and will...

    Two methods can be used to produce expansion anchors. Method A costs $90,000 initially and will have a $16,000 salvage value after 3 years. The operating cost with this method will be $26,000 in year 1, increasing by $3200 each year. Method B will have a first cost of $106,000, an operating cost of $6000 in year 1, increasing by $6000 each year, and a $36,000 salvage value after its 3-year life. At an interest rate of 14% per year,...

  • One of two methods must be used to produce expansion anchors. Method A costs $75,000 initially and will have a $16,0...

    One of two methods must be used to produce expansion anchors. Method A costs $75,000 initially and will have a $16,000 salvage value after 3 years. The operating cost with this method will be $25,000 per year. Method B will have a first cost of $150,000, an operating cost of $16,000 per year, and a $34,000 salvage value after its 3-year life. The interest rate for both the methods is 11%. What is the present worth of A PWA =...

  • 4.16 Halogen-free liquid crystal polymers are used for lead-free soldering without corrosion and maintenance issues. The...

    4.16 Halogen-free liquid crystal polymers are used for lead-free soldering without corrosion and maintenance issues. The polymers can be produced by either of two methods. Equipment for method A costs $70,000 initially and has a $15,000 salvage value after 3 years. The operating cost with this method will be $20,000 per year. Method B will have a first cost of $140,000, an operating cost of $8000 per year, and a $40,000 salvage value after its 3-year life. At an interest...

  • Moving to another question will save this response. Question 1 of 4 Question 1 10 points...

    Moving to another question will save this response. Question 1 of 4 Question 1 10 points A company purchased a quality control system for $39.489 which requires $7,660 per year maintenance fees for the first 5 years, after which the maintenance fees will increase by 12% per year for the upcoming 7 years Determine the equivalent total present worth value of preached system during the 12 years operation at 15% per year Moving to another question will save this response....

  • 2. A company has to choose one of three different assembly methods. Method A will have...

    2. A company has to choose one of three different assembly methods. Method A will have a first cost of $30,000, an annual operating cost of $9,000, and a service life of 2 years. Method B will cost $80,000 to buy and will have an annual operating cost of $6,000 over its 4-year service life. Method C will cost $130,000 initially with an annual operating cost of $4000 over its 8-year life. Methods A and B will have no salvage...

  • Moving to another question will save this response. Question 13 of 25 Question 13 1 points...

    Moving to another question will save this response. Question 13 of 25 Question 13 1 points Save Answe Outdoor Sports is considering adding a putt putt golf course to its facility. The course would cost $189.000, would be depreciated on a straight line basis over its 6-year life, and would have a zero salvage value. The sales would be $94.500 a year, with variable costs of $28,450 and foxed costs of $13.050. In addition, the firm anticipates an additional $23.700...

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