Price=$40,000
Salvage value= $15,000
Usage of machine in first year= 4,000 hours
Usage of machine in second year=6,000 hours
first year savings=$28,000
second year saving=$40,000
Interest rate=10%
Time period=2 years
I need the complete-correct answer for this question with a good explanation Question 2: You invest...
ECON
You have purchased a machine costing $26,000. The machine will be used for two years, and at the end of this time, its salvage value is expected to be $18,000. The machine will be used 7,000 hours during the first year and 9,000 hours during the second year. The expected annual net savings will be $36,000 during the first year and $49,000 during the second year. If your interest rate is 14%, what would be the equivalent net savings...
Techmac Manufacturing is considering the following two alternatives. The cost information for the two proposals for replacing an equipment are provided are in table below. Initial cost $120,000 Benefits/year $20,000 for the first 10 years S12,000 per year for 20 years. Machine Y S96,000 Machine X and $9,000 for the next 10 years 20 years Life Salvage value $40,000 MARR S20,000 10% a) Determine the engineering economic symbols for each b) Draw the Cash flow Diagram for each Alternative c)...
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Question 7 (2 points) Your company has an opportunity to invest in a project that is expected to result in after-tax cash flows of $7,000 the first year, $9,000 the second year, $12,000 the third year, -$8,000 the fourth year, $19,000 the fifth year, $25,000 the sixth year, $28,000 the seventh year, and - $6,000 the eighth year. The project would cost the firm $47,300. If the firm's cost of capital is 10%, what is...
You will invest in a project that is planned to last 8 years. The first payment is today and the last payment is 8 years from today. Of each payment, 40,000 will be used for salaries and the balance for equipment and facilities costs. The equipment and facilities cost starts at 26,000 and drops by 3000 per year until the cost is 14,000. At this point the cost stays constant at 14,000 for the remainder of the project. If interest...
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I have been struggling for a while, and mainly I need the
answer!
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Question 1 1) Which of the following is NOT a period cost? A) B) C) D) Depreciation of factory maintenance equipment. Salary of a clerk who handles customer billing. Insurance on a company showroom where customers can view new products, Cost of a seminar concerning tax law updates that was attended by the company's controller. Question 4...
QUESTION 2 A machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of 5 years or 15,000 hours. It is to be depreciated by the units-of-production method. What is the amount of depreciation for a second full year, during which the machine was used 5,000 hours? O $8,000 O$20,000 $12,000 O $21.667
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Lena is a sole proprietor. In April of this year, she sold equipment purchased four years ago for $65,800 with an adjusted basis of $39,480 for $43,428. Later in the year, Lena sold another piece of equipment purchased two years ago with an adjusted basis of $19,740 for $12,831. What are the tax consequences of these tax transactions? Lena has of from the sale of the first equipment. Lena has ▼of from the...
For 11, i chosed 3, is it
correct?
Spt X Company is considering replacing one of its machines in order to save operating costs. Operating costs with the current machine are $60,000 per year; operating costs with the new machine are expected to be $48,000 per year. The new machine will cost $65,000 and will last for six years, at which time it can be sold for $1,000. Thbe current machine will also last for six more years but will...
what is the payback period , net present Value, Initial rate
of return , and MIRR for both machines
Question 2 Staten Island Construction Company is considering replacing an existing crane with one of two newer more effective models. The existing crane is 3 years old, cost $32,000 and is being depreciated under MACRS using a 5-year recovery period. Although the existing crane has only three years of depreciation remaining under MACRS, it has a remaining usable life of 5...
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explanation Please and Thank you.
Chapter 15 Homework Saved Help Save & Exit Submit Check my work At the beginning of the year, a company predicts total overhead costs of $633,600. The company applies overhead using machine hours and estimates it will use 1,440 machine hours during the year. What amount of overhead should be applied to Job 65A if that job uses 17 machine hours during January? 4.44...