Question

Interest Rate = 3%

Q2. The Department of Engineering is contemplating the purchase of a top-of-the- line PCB drilling machine to be used in its

0 0
Add a comment Improve this question Transcribed image text
Answer #1

As per given condition, for breakeven

PW of machine = -5000 + 500*(P/A,3%,10) + S*(P/F,3%,10) = 0

-5000 + 500*8.530203 + S*0.744094 = 0

S = (5000 - 500*8.530203) / 0.744094 = 987.64

Add a comment
Know the answer?
Add Answer to:
Interest Rate = 3% Q2. The Department of Engineering is contemplating the purchase of a top-of-the-...
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
  • interest = 3% Q2. The Department of Engineering is contemplating the purchase of a top-of-the- line...

    interest = 3% Q2. The Department of Engineering is contemplating the purchase of a top-of-the- line PCB drilling machine to be used in its laboratories. The price of the machine is $5,000. The depreciation rate of the machine follows the SL method over its 10 years life. The market value of the machine at the end of its life is estimated to be $S. Annual fees paid by students to use the machine are estimated to be $500. What is...

  • Q2. The Department of Engineering is contemplating the purchase of a top-of-the- line PCB drilling machine...

    Q2. The Department of Engineering is contemplating the purchase of a top-of-the- line PCB drilling machine to be used in its laboratories. The price of the machine is $5,000. The depreciation rate of the machine follows the SL method over its 10 years life. The market value of the machine at the end of its life is estimated to be $S. Annual fees paid by students to use the machine are estimated to be $500. What is the value for...

  • Q2. [20 marks] The Department of Engineering is contemplating the purchase of a top-of-the- line PCB...

    Q2. [20 marks] The Department of Engineering is contemplating the purchase of a top-of-the- line PCB drilling machine to be used in its laboratories. The price of the machine is $5,000. The depreciation rate of the machine follows the SL method over its 10 years life. The market value of the machine at the end of its life is estimated to be $S. Annual fees paid by students to use the machine are estimated to be $500. What is the...

  • Q2. [20 marks] The Department of Engineering is contemplating the purchase of a top-of-the- line PCB...

    Q2. [20 marks] The Department of Engineering is contemplating the purchase of a top-of-the- line PCB drilling machine to be used in its laboratories. The price of the machine is $5,000. The depreciation rate of the machine follows the SL method over its 10 years life. The market value of the machine at the end of its life is estimated to be $S. Annual fees paid by students to use the machine are estimated to be $500. What is the...

  • Q2. [20 marks] The Department of Engineering is contemplating the purchase of a top-of-the- line PCB...

    Q2. [20 marks] The Department of Engineering is contemplating the purchase of a top-of-the- line PCB drilling machine to be used in its laboratories. The price of the machine is $5,000. The depreciation rate of the machine follows the SL method over its 10 years life. The market value of the machine at the end of its life is estimated to be SS. Annual fees paid by students to use the machine are estimated to be $500. What is the...

  • Q2. [20 marks] The Department of Engineering is contemplating the purchase of a top-of-the- line PCB...

    Q2. [20 marks] The Department of Engineering is contemplating the purchase of a top-of-the- line PCB drilling machine to be used in its laboratories. The price of the machine is $5,000. The depreciation rate of the machine follows the SL method over its 10 years life. The market value of the machine at the end of its life is estimated to be $S. Annual fees paid by students to use the machine are estimated to be $500. What is the...

  • The Department of Engineering is contemplating the purchase of a top-of-the- line PCB drilling machine to...

    The Department of Engineering is contemplating the purchase of a top-of-the- line PCB drilling machine to be used in its laboratories. The price of the machine is $5,000. The depreciation rate of the machine follows the SL method over its 10 years life. The market value of the machine at the end of its life is estimated to be $S. Annual fees paid by students to use the machine are estimated to be $500. What is the value for S...

  • .ATCF Analysis: (15 ptos) ACME Inc. is contemplating the purchase of a new caterpillar machine. The machine will co...

    .ATCF Analysis: (15 ptos) ACME Inc. is contemplating the purchase of a new caterpillar machine. The machine will cost $180,000. Its market value at the end of five years is estimated as $40,000. The accounting department uses the MACRS GDS-3 years recovery period depreciate the equipment. The justification for this machine include $60,000 savings per year in labor and $30,000 savings per year in reduced material. Equipment life 5 years, Tax rate 40% MARR is 10%. Use this information to...

  • .ATCF Analysis: (15 ptos) ACME Inc. is contemplating the purchase of a new caterpillar machine. The machine will co...

    .ATCF Analysis: (15 ptos) ACME Inc. is contemplating the purchase of a new caterpillar machine. The machine will cost $180,000. Its market value at the end of five years is estimated as $40,000. The accounting department uses the MACRS GDS-3 years recovery period depreciate the equipment. The justification for this machine include $60,000 savings per year in labor and $30,000 savings per year in reduced material. Equipment life 5 years, Tax rate 40% MARR is 10%. Use this information to...

  • 5. value 3.12 points King's Department Store is contemplating the purchase of a new machine at...

    5. value 3.12 points King's Department Store is contemplating the purchase of a new machine at a cost of $27,653. The machine will provide $4,500 per year in cash flow for ten years. King's has a cost of capital of 12 percent. Use Appendix D for an approximate answer but calculate your final answer using the financial calculator method. a. What is the internal rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to...

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