Homework Answers
Cost of Machine = $120,000
Estimated life = 12 Years
Salvage Value = $12,000
Annual Maintainence Expense = $54,000
Required Rate of Return = 15%
So,
Minimum Annual After tax Net Profit Required = $21723.92
So, Minimum Annual After Tax Revenue = 21723.92 + 54000
Minimum Annual After Tax Revenue = $75,723.92
Add Answer to:
Question Help roblem 7-35 (algorithmic) g purchasing a CNC machine which costs $120,000. This machine will...
You are considering purchasing a CNC machine which costs $120,000. This machine will have an estimated...
You are considering purchasing a CNC machine which costs $120,000. This machine will have an estimated service life of 12 years with a net after-tax salvage value of $12,000. Its annual after-tax operating and maintenance costs are estimated to be $59,000. 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...
You are considering purchasing a CNC machine which costs $140,000. This machine will have an estimated...
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...
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...
You are considering purchasing a CNC machine which costs $140,000. This machine will have an estimated service life of...
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 $150,000. This machine will have an estimated service life of...
You are considering purchasing a CNC machine which costs $150,000. This machine will have an estimated service life of 12 years with a net after-tax salvage value of $15,000. Its annual after-tax operating and maintenance costs are estimated to be $54,000. To expect an 16% rate of return on investment, what would be the required minimum annual after-tax revenues? 5 Click the icon to view the interest factors for discrete compounding when i = 16% per year. The required minimum...
Problem 10-1 (algorithmic) Question Help A firm is considering purchasing a machine that costs $60,000. It...
Problem 10-1 (algorithmic) Question Help A firm is considering purchasing a machine that costs $60,000. It will be used for six years, and the salvage value at that time is expected to be zero. The machine will save $35,000 per year in labor, but it will incur $13,000 in operating and maintenance costs each year. The machine will be depreciated according to five-year MACRS. The firm's tax rate is 40%, and its after-tax MARR is 15%. Should the machine be...
You are considering purchasing a CNC machine which costs $130,000. This machine will have an estimated service life...
You are considering purchasing a CNC machine which costs $130,000. This machine will have an estimated service life of 10 years with a net aftier-tax salvage value of $13,000. Its annual after-tax operating and maintenance costs are estimated to be $60,000. To expect an 17 % 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 /-17 % per year The required minimum annual...
You are considering purchasing a CNC machine which costs $160,000. This machine will have an estimated service li...
You are considering purchasing a CNC machine which costs $160,000. This machine will have an estimated service life of 12 years with a net after-tax salvage value of $16,000. Its annual after-tax operating and maintenance costs are estimated to be $56,000. 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...
You are considering purchasing a CNC machine which costs $160,000. This machine will have an estimated...
You are considering purchasing a CNC machine which costs $160,000. This machine will have an estimated service life of 11 years with a net after-tax salvage value of $16,000. Its annual after-tax operating and maintenance costs are estimated to be $51,000. To expect an 19% rate of return on investment, what would be the required minimum annual after-tax revenues? X More Info Th Single Payment Compound Amount Equal Payment Series Present Worth Factor (P/A, i, N) Present Worth Compound Amount...
Problem 5-49 (algorithmic) Question Help Consider the two mutually exclusive projects in the table below. Salvage...
Problem 5-49 (algorithmic) Question Help Consider the two mutually exclusive projects in the table below. Salvage values represent the net proceeds (after tax) from disposal of the assets if they are sold at the end of each year. Both projects B1 and B2 will be available (or can be repeated) with the same costs and salvage values for an indefinite period. Click the icon to view the additional data about the mutually exclusive projects. Click the icon to view the...
You are considering purchasing a CNC machine which costs $120,000. This machine will have an estimated service life of 12 years with a net after-tax salvage value of $12,000. Its annual after-tax operating and maintenance costs are estimated to be $59,000. 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...
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...
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 $150,000. This machine will have an estimated service life of 12 years with a net after-tax salvage value of $15,000. Its annual after-tax operating and maintenance costs are estimated to be $54,000. To expect an 16% rate of return on investment, what would be the required minimum annual after-tax revenues? 5 Click the icon to view the interest factors for discrete compounding when i = 16% per year. The required minimum...
Problem 10-1 (algorithmic) Question Help A firm is considering purchasing a machine that costs $60,000. It will be used for six years, and the salvage value at that time is expected to be zero. The machine will save $35,000 per year in labor, but it will incur $13,000 in operating and maintenance costs each year. The machine will be depreciated according to five-year MACRS. The firm's tax rate is 40%, and its after-tax MARR is 15%. Should the machine be...
You are considering purchasing a CNC machine which costs $130,000. This machine will have an estimated service life of 10 years with a net aftier-tax salvage value of $13,000. Its annual after-tax operating and maintenance costs are estimated to be $60,000. To expect an 17 % 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 /-17 % per year The required minimum annual...
You are considering purchasing a CNC machine which costs $160,000. This machine will have an estimated service life of 12 years with a net after-tax salvage value of $16,000. Its annual after-tax operating and maintenance costs are estimated to be $56,000. 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...
You are considering purchasing a CNC machine which costs $160,000. This machine will have an estimated service life of 11 years with a net after-tax salvage value of $16,000. Its annual after-tax operating and maintenance costs are estimated to be $51,000. To expect an 19% rate of return on investment, what would be the required minimum annual after-tax revenues? X More Info Th Single Payment Compound Amount Equal Payment Series Present Worth Factor (P/A, i, N) Present Worth Compound Amount...
Problem 5-49 (algorithmic) Question Help Consider the two mutually exclusive projects in the table below. Salvage values represent the net proceeds (after tax) from disposal of the assets if they are sold at the end of each year. Both projects B1 and B2 will be available (or can be repeated) with the same costs and salvage values for an indefinite period. Click the icon to view the additional data about the mutually exclusive projects. Click the icon to view the...
Most questions answered within 3 hours.
-
Why do organizations decline? What steps can top
management take to halt, decline, and restore organizational...
asked 9 minutes ago -
Under the influence of its drive force, a snowmobile is moving
at a constant velocity along...
asked 23 minutes ago -
What mechanisms Drive speciation??
(I.e. what was Dawins theory on the orgin of species, and how...
asked 1 hour ago -
The manager at a car assembly plant believes that the mean
assembly time for a car...
asked 2 hours ago -
Which of the following is true of electron capture?
A) It decreases the nuclide's mass number...
asked 4 hours ago -
Assuming an efficiency of 43.10%, calculate the actual yield of
magnesium nitrate formed from 114.9 g...
asked 4 hours ago -
The highly pathogenic bacterium Clostridium
perfringens causes gangrene, a disease that results in the
destruction of...
asked 6 hours ago -
In the context of situation analysis, which of the following is
a category for analysis in...
asked 6 hours ago -
In a study of the gas phase decomposition of sulfuryl chloride
at 600 K SO2Cl2(g)SO2(g) +...
asked 6 hours ago -
75 g of 2-propanol (C3H8O) and 25 g of pentane are mixed in a
200 mL...
asked 6 hours ago -
The 2800-turn coil in a dc motor has an area per turn of 1.1 ×
10-2...
asked 6 hours ago -
Draw a combinational logic circuit diagram with a symbol inside
the box for two I/P of...
asked 6 hours ago