Homework Answers
FW of Machine A = -65000 *(F/P,12%,5) - 14000*(F/A,12%,5) + 6000
= -65000 *1.762342 - 14000*6.352847 + 6000
= -197492.09 ~ -197492
FW of Machine B = -110000 *(F/P,12%,5) - 6000*(F/A,12%,5) + 29000
= -110000 *1.762342 - 6000*6.352847 + 29000
= -202974.70 ~ -202975
As Future cost of Machine A is less, it should be selected
Add Answer to:
Your company must purchase a machine to build the products it produces. There are two options:...
Horn Company is considering the purchase of a new machine for $108,000. The machine would replace...
Horn Company is considering the purchase of a new machine for $108,000. The machine would replace an old piece of equipment that costs $41,830 per year to operate. The new machine would cost $25,720 per year to operate. The old machine currently in use can be sold for $9,500 if the new machine is purchased. The new machine would have a useful life of ten years with a $6,000 salvage value. Calculate the accounting rate of return on the machine...
The Supreme Show Company is considering the purchase of a new, fully automated machine to replace...
The Supreme Show Company is considering the purchase of a new, fully automated machine to replace a manually operated one. The machine being replaced, now five years old, originally had an expected life of 10 years, is being depreciated using the straight-line method from $40,000 down to $0 and can now be sold for $22,000. It takes one person to operate the machine and he earns $29,000 per year in salary and benefits. The annual costs of maintenance and defects...
Question 1 The engineering team at Manuel's Manufacturing, Inc., is planning to purchase an enterprise resource...
Question 1 The engineering team at Manuel's Manufacturing, Inc., is planning to purchase an enterprise resource planning (ERP) system. The software and installation from Vendor A costs $430,000 initially and is expected to increase revenue $110,000 per year every year. The software and installation from Vendor B costs $285,000 and is expected to increase revenue $115,000 per year. Manuel's uses a 4- year planning horizon and a 7.5 % per year MARR. Click here to access the TVM Factor Table...
Aerotron Electronics is considering the purchase of a water filtration system to assist in circuit board...
Aerotron Electronics is considering the purchase of a water filtration system to assist in circuit board manufacturing. The system costs $40,000. It has an expected life of 7 years at which time its salvage value will be $7,500. Operating and maintenance expenses are estimated to be $2,000 per year. If the filtration system is not purchased, Aerotron Electronics will have to pay Bay City $12,000 per year for water purification. If the system is purchased, no water purification from Bay...
Aero tron F ec ronis is cont denng the purchase of a water filtration system t assist in circuit ...
Aero tron F ec ronis is cont denng the purchase of a water filtration system t assist in circuit board manu ac uring. The system costs $50,000 t has an expected e of 7 years at which time its salvage vaue will be $7,500ロperating and maintenance expenses are estimated to be $16,000 per year. If the filtration system is not purchased, Aerotran Electronics will have to pay Bay City $18,000 per year for water purificatian. If the system is purchased,...
Your company needs a machine for the next seven years, and you have two choices (assume...
Your company needs a machine for the next seven years, and you have two choices (assume an annual interest rate of 6%). Machine A costs $140,000 and has an annual operating cost of $46,000. Machine A has a useful life of seven years and a salvage value of $8,000. Machine B costs $180,000 and has an annual operating cost of $24,000. Machine B has a useful life of five years and no salvage value. However, the life of Machine B...
1. A printing machine costs P400,000 to purchase with a life of 10 years with no...
1. A printing machine costs P400,000 to purchase with a life of 10 years with no salvage value .If the rate of interest is 10% per annum. compounded annually ,compute the equivalent uniform annual cost of the machine if it will cost P100,000 per year to operate ? 2. The first cost of an electric rebar bender is P324,000 and a salvage value of P50,000 at the end of its life for 4 years .Money is worth 6% annually .If...
Marshall-Miller & Company is considering the purchase of a new machine for $50,000, installed. The machine...
Marshall-Miller & Company is considering the purchase of a
new machine for $50,000, installed. The machine has a tax life of 5
years, and it can be depredated according to the depreciation rates
below. The firm expects to operate the machine for 3 years and then
to sell it for $12,500. If the marginal tax rate is 40%, what will
the after-tax salvage value be when the machine is sold at the end
of Year 3?
Problem 6 Marshall-Miller &...
ABC Company is considering the purchase of a new machine for $80,000 installed. The machine will...
ABC Company is considering the purchase of a new machine for $80,000 installed. The machine will be depreciated by MACRS as 5 year property. The firm expects to operate the machine for 4 years and then to sell it for $11,750. If the marginal tax rate is 25.00%, what will the after–tax salvage value be when the machine is sold at the end of Year 4? Enter your answer rounded to two decimal places.
1. Star Inc. must purchase a small size milling machine. The following is known about the...
1. Star Inc. must purchase a small size milling machine. The following is known about the machine and about possible cash flows. The machine is expected to have a useful life of 8 years. The company has a MARR of 7%. Determine the NPW of the machine. p=.30 p=40 p=30 First cost $40,000 $40,000 $40,000 Annual savings 2,000 5,000 8,000 Annual costs 12,000 8,000 6,000 Actual salvage value 4,000 5,000 6,500 2. The company accountant is uncertain which of three...
Question 1 The engineering team at Manuel's Manufacturing, Inc., is planning to purchase an enterprise resource planning (ERP) system. The software and installation from Vendor A costs $430,000 initially and is expected to increase revenue $110,000 per year every year. The software and installation from Vendor B costs $285,000 and is expected to increase revenue $115,000 per year. Manuel's uses a 4- year planning horizon and a 7.5 % per year MARR. Click here to access the TVM Factor Table...
Aerotron Electronics is considering the purchase of a water filtration system to assist in circuit board manufacturing. The system costs $40,000. It has an expected life of 7 years at which time its salvage value will be $7,500. Operating and maintenance expenses are estimated to be $2,000 per year. If the filtration system is not purchased, Aerotron Electronics will have to pay Bay City $12,000 per year for water purification. If the system is purchased, no water purification from Bay...
Aero tron F ec ronis is cont denng the purchase of a water filtration system t assist in circuit board manu ac uring. The system costs $50,000 t has an expected e of 7 years at which time its salvage vaue will be $7,500ロperating and maintenance expenses are estimated to be $16,000 per year. If the filtration system is not purchased, Aerotran Electronics will have to pay Bay City $18,000 per year for water purificatian. If the system is purchased,...
Marshall-Miller & Company is considering the purchase of a
new machine for $50,000, installed. The machine has a tax life of 5
years, and it can be depredated according to the depreciation rates
below. The firm expects to operate the machine for 3 years and then
to sell it for $12,500. If the marginal tax rate is 40%, what will
the after-tax salvage value be when the machine is sold at the end
of Year 3?
Problem 6 Marshall-Miller &...
1. Star Inc. must purchase a small size milling machine. The following is known about the machine and about possible cash flows. The machine is expected to have a useful life of 8 years. The company has a MARR of 7%. Determine the NPW of the machine. p=.30 p=40 p=30 First cost $40,000 $40,000 $40,000 Annual savings 2,000 5,000 8,000 Annual costs 12,000 8,000 6,000 Actual salvage value 4,000 5,000 6,500 2. The company accountant is uncertain which of three...
Most questions answered within 3 hours.
-
What are John’s potential claims if he is terminated
this week?
John is a 54-year-old man...
asked 4 minutes ago -
A (8.5) cm tall object is placed at a distance of (14.2) cm from
a convex...
asked 13 minutes ago -
(2) For the following questions, consider a data set that
exhibits a normal distribution. Report the...
asked 14 minutes ago -
What exactly is an information system? How does it work" What
are its people organization,
...
asked 15 minutes ago -
The Food Marketing Institute shows that 17% of households spend
more than $100 per week on...
asked 25 minutes ago -
Go to NCBI BLAST search web page
1st search: GEKDLRRAKDINQEVYNF
2nd search: PTSQRLQLLEPFDK
3rd search: GEKDLRRAKDINQEVYNF...
asked 28 minutes ago -
Explain how each of the following three conditions could be a
red flag for a register...
asked 33 minutes ago -
In a two-way factorial ANOVA, the final F-ratio for
factor AxB is determined by dividing _____...
asked 1 hour ago -
Show your solutions for answer.
4. An aqueous solution contains 9.21 g of
K4Fe(CN)6 in a...
asked 33 minutes ago -
The random variable X has a uniform distribution with values
between 16 and 18. What is...
asked 43 minutes ago -
Evaluate each of the following transactions in terms of their
effect on assets, liabilities, and equity....
asked 42 minutes ago -
The amounts of nicotine in a certain brand of cigarette are
normally distributed with a mean...
asked 1 hour ago