Hultiple Choice Question 138 A company is considering purchasing a machine that costs $250000 and is...
A company is considering purchasing a machine that costs $256000 and is estimated to have no salvage value at the end of its 8-year useful life. If the machine is purchased, annual revenues are expected to be $100000 and annual operating expenses exclusive of depreciation expense are expected to be $38000. The straight-line method of depreciation would be used. If the machine is purchased, the annual rate of return expected on this machine is 24.22%. 48.44%. 11.72%. 23.44%.
13. A company is considering purchasing a machine that costs $344000 and is estimated to have no salvage value at the end of its 8-year useful life. If the machine is purchased, annual revenues are expected to be $100000 and annual operating expenses exclusive of depreciation expense are expected to be $38000. The straight-line method of depreciation would be used. If the machine is purchased, the annual rate of return expected on this machine is 36.04%. 11.05%. 5.52%. 18.02%. 14....
A company is considering purchasing a machine that costs $240000 and is estimated to have no salvage value at the end of its 8-year useful life. If the machine is purchased, annual revenues are expected to be $70000 and annual operating expenses exclusive of depreciation expense are expected to be $32000. The straight-line method of depreciation would be used. The cash payback period on the machine is 7.3 years. 6.3 years. 3.6 years.
A company is considering purchasing a machine that costs $520000 and is estimated to have no salvage value at the end of its 8-year useful life. If the machine is purchased, annual revenues are expected to be $210000 and annual operating expenses exclusive of depreciation expense are expected to be $40000. The straight-line method of depreciation would be used. The cash payback period on the machine is 8.0 years. 4.1 years. 3.1 years. 2.0 years.
Multiple Choice Question 113 A company is considering purchasing factory equipment which costs $500000 and is estimated to have no salvage value at the end of its 8-year useful life. If the equipment is purchased, annual revenues are expected to be $229000 and annual operating expenses exclusive of depreciation expense are expected to be $90000. The straight-line method of depreciation would be used. If the equipment is purchased, the annual rate of return expected on this project is
A division of Sunland Manufacturing is considering purchasing for $1,680,000 a machine that automates the process of inserting electronic components onto computer motherboards. The annual cost of operating the machine will be $56,000, but it will save the company $414,000 in labor costs each year. The machine will have a useful life of 10 years, and its salvage value in 10 years is estimated to be $336,000. Straight-line depreciation will be used in calculating taxes for this project, and the...
A division of Crane Manufacturing is considering purchasing for $1,830,000 a machine that automates the process of inserting electronic components onto computer motherboards. The annual cost of operating the machine will be $61,000, but it will save the company $451,000 in labor costs each year. The machine will have a useful life of 10 years, and its salvage value in 10 years is estimated to be $366,000. Straight-line depreciation will be used in calculating taxes for this project, and the...
A division of Ivanhoe Manufacturing is considering purchasing for $1,560,000 a machine that automates the process of inserting electronic components onto computer motherboards. The annual cost of operating the machine will be $52,000, but it will save the company $385,000 in labor costs each year. The machine will have a useful life of 10 years, and its salvage value in 10 years is estimated to be $312,000. Straight-line depreciation will be used in calculating taxes for this project, and the...
You are considering purchasing a CNC machine which costs $140,000. This machine will have an estimated service life of 9 years with a net after-tax salvage value of $14,000. Its annual after-tax operating and maintenance costs are estimated to be $52,000. To expect an 16% rate of return on investment, what would be the required minimum annual after-tax revenues? Click the icon to view the interest factors for discrete compounding when i 16% per year. The required minimum annual after-tax...
You are considering purchasing a CNC machine which costs $190,000. This machine will have an estimated service life of 13 years with a net after-tax salvage value of $19,000. Its annual after-tax operating and maintenance costs are estimated to be $40,000. To expect an 16% rate of return on investment, what would be the required minimum annual after-tax revenues? Click the icon to view the interest factors for discrete compounding when i-16% per year. The required minimum annual after-tax revenues...