Assume a machine costs $598,000 and lasts eight years before it is replaced. The operating cost...
Assume a machine costs $598,000 and lasts eight years before it is replaced. The operating cost is $119,600 a year. Ignore taxes. What is the equivalent annual cost if the required rate of return is 13 percent? (Hint: the EAC should account for both initial investment and annual operating costs)
$225,814.72
$236,071.33
$244,215.26
$257,310.05
$268,799.94
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Assume a machine costs $598,000 and lasts eight years before it
is replaced. The operating cost...
Assume the initial cost of a machine is $923,800 and it costs $67,300 a year to...
Assume the initial cost of a machine is $923,800 and it costs $67,300 a year to operate. The machine has a life of four years before it is replaced. Ignore taxes. What is the equivalent annual cost of this machine if the required return is 14 percent? A. $384,353 B. $297,152 C. $410,642 D. $177,496
Jackson & Sons uses packing machines to prepare its products for shipping. One machine costs $397,500...
Jackson & Sons uses packing machines to prepare its products for shipping. One machine costs $397,500 and lasts 5 years before it needs replaced. The machine will be worthless after the 5 years. The annual aftertax operating cost per machine is $38,400. What is the equivalent annual cost of one machine if the required rate of return is 16 percent? Please show the steps so that I can learn from what I am doing wrong. Thanks!
The initial cost of a machine is $750,000. This machine costs $12,000 a year to operate...
The initial cost of a machine is $750,000. This machine costs $12,000 a year to operate and has a life of 3 years before it is replaced. What is the equivalent annual cost of this machine if the required return is 10%? options: -$301,586 -$313,586 -$259,947 -$326,947 -$285,942
Champion Bakers uses specialized ovens to bake its bread. One oven costs $840,000 and lasts about...
Champion Bakers uses specialized ovens to bake its bread. One oven costs $840,000 and lasts about 3 years before it needs to be replaced. The annual operating cost per oven is $10,000. What is the equivalent annual cost of an oven if the required rate of return is 11 percent? (Round your answer to whole dollars) $-359,381 $-348,281 $-864,437 $-353,739
18. Country Breads uses specialized ovens to bake its bread. One oven costs $189,000 and lasts...
18. Country Breads uses specialized ovens to bake its bread. One oven costs $189,000 and lasts about seven years before it needs to be replaced. The annual operating cost per oven is $23,800. What is the equivalent annual cost of an oven if the required rate of return is 11 percent? A. B. $63,908.69 $43,908.69 $83,908.69 $73,908.69 $3,908.69 C. D. E.
Champion Bakers uses specialized ovens to bake its bread One oven costs $860,000 and lasts about...
Champion Bakers uses specialized ovens to bake its bread One oven costs $860,000 and lasts about 3 years before it needs to be replaced The annual operating cost per oven is $11,000 What is the equivalent annual cost of an oven if the required rate of return is 9 percent? (Round your answer to whole dollars) $-356,474 $-344,484 O $-352,48 O $ 328,388 $350,747 Network 3 items DK
3) An asset that lasts 8 years costs $300,000 today and costs $15,000 per yea 8...
3) An asset that lasts 8 years costs $300,000 today and costs $15,000 per yea 8 years. The tax rate is 20%, and the discount rate is 9%. What is the equiva 3) An asset that lasts 8 years costs $300,000 today and costs $15,000 per year to maintain. The asset is depreciated straight-line to zero 8 years. The tax rate is 20 %, and the discount rate is 9%. What is the equivalent annual cost (EAC) of this asset?
Great Enterprises is analyzing a machine that costs of $285,000, has annual operating costs of $8,500,...
Great Enterprises is analyzing a machine that costs of $285,000, has annual operating costs of $8,500, and has a 3-year life. The company requires a 13 percent rate of return. The machine will be replaced at the end of its useful life. What is the effective annual cost of this machine? A. $129,204 B. $139,892 C. $149,282 D. $178,109 E. $189,677
13,14,15 313750 PV Costs 15 years Machine A Machine B $75,500 are the same functions, have...
13,14,15
313750 PV Costs 15 years Machine A Machine B $75,500 are the same functions, have The machines, A and, which Bowing costs and lives Life $105,000 8 years DOO Ir the cost of capital were 250, which machine would you chooser 2. Machine A because the EAC(equivalent annual cost) is $27.20 527,207.27. Machine because the EAC equivalent annual cost) is $9346.50. Machine A because the EAC equivalent annual cost) is $7000.00. d. Machine B because the EAC equivalent annual...
co. is now considering which of two product labeling machine to buy. Machine A costs $5,000...
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18. Country Breads uses specialized ovens to bake its bread. One oven costs $189,000 and lasts about seven years before it needs to be replaced. The annual operating cost per oven is $23,800. What is the equivalent annual cost of an oven if the required rate of return is 11 percent? A. B. $63,908.69 $43,908.69 $83,908.69 $73,908.69 $3,908.69 C. D. E.
Champion Bakers uses specialized ovens to bake its bread One oven costs $860,000 and lasts about 3 years before it needs to be replaced The annual operating cost per oven is $11,000 What is the equivalent annual cost of an oven if the required rate of return is 9 percent? (Round your answer to whole dollars) $-356,474 $-344,484 O $-352,48 O $ 328,388 $350,747 Network 3 items DK
3) An asset that lasts 8 years costs $300,000 today and costs $15,000 per yea 8 years. The tax rate is 20%, and the discount rate is 9%. What is the equiva 3) An asset that lasts 8 years costs $300,000 today and costs $15,000 per year to maintain. The asset is depreciated straight-line to zero 8 years. The tax rate is 20 %, and the discount rate is 9%. What is the equivalent annual cost (EAC) of this asset?
13,14,15
313750 PV Costs 15 years Machine A Machine B $75,500 are the same functions, have The machines, A and, which Bowing costs and lives Life $105,000 8 years DOO Ir the cost of capital were 250, which machine would you chooser 2. Machine A because the EAC(equivalent annual cost) is $27.20 527,207.27. Machine because the EAC equivalent annual cost) is $9346.50. Machine A because the EAC equivalent annual cost) is $7000.00. d. Machine B because the EAC equivalent annual...
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