A conveyor belt costs $40,000 and lasts for three years. A reinforced conveyer belt costs $50,000...
Homework Answers
EUAC of first belt = 40000*(A/P, 10%,3) = 40000 * 0.402115 = 16084.59
EUAC of reinforced belt = 50000*(A/P, 10%,4) = 50000 * 0.315471 = 15773.54
As EUAC of reinforced belt is less, it should be selected
Add Answer to:
A conveyor belt costs $40,000 and lasts for three years. A
reinforced conveyer belt costs $50,000...
Matta Manufacturing is trying to decide between two different conveyor belt systems. System A costs $280,000,...
Matta Manufacturing is trying to decide between two different conveyor belt systems. System A costs $280,000, has a four-year life, and requires $85,000 in pretax annual operating costs. System B costs $396,000, has a six-year life, and requires $79,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. Suppose the company always needs a conveyor belt system; when one wears out, it must be replaced. Assume...
Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System...
Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $360,000, has a four-year life, and requires $149,000 in pretax annual operating costs. System B costs $440,000, has a six-year life, and requires $143,000 in pretax annual operating costs. Suppose the company always needs a conveyor belt system; when one wears out, it must be replaced. Assume the tax rate is 24 percent and the discount rate is 10 percent. Calculate the...
Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System...
Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $340,000, has a four-year life, and requires $133,000 in pretax annual operating costs. System B costs $420,000, has a six-year life, and requires $127,000 in pretax annual operating costs. Suppose the company always needs a conveyor belt system; when one wears out, it must be replaced. Assume the tax rate is 25 percent and the discount rate is 10 percent. Calculate the...
Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System...
Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $360,000, has a four-year life, and requires $149,000 in pretax annual operating costs. System B costs $440,000, has a six-year life, and requires $143,000 in pretax annual operating costs. Suppose the company always needs a conveyor belt system; when one wears out, it must be replaced. Assume the tax rate is 24 percent and the discount rate is 10 percent 4 points...
Matta Manufacturing is trying to decide between two different conveyor belt systems. System A costs $244,000,...
Matta Manufacturing is trying to decide between two different conveyor belt systems. System A costs $244,000, has a four-year life, and requires $76,000 in pretax annual operating costs. System B costs $342,000, has a six-year life, and requires $70,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. Whichever system is chosen, it will not be replaced when it wears out. The tax rate is 35...
Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems System...
Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems System A costs $300,000, has a four-year life, and requires $101000 in pretax annual operating costs System B costs $380,000, has a six-year life. and requires $95.000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. Whichever project is chosen, it will not be replaced when it wears out the tax...
Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System...
Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $340,000, has a four-year life, and requires $133,000 in pretax annual operating costs. System B costs $420,000, has a six-year life, and requires $127,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. Whichever project is chosen, it will not be replaced when it wears out. The tax...
23 Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems....
23 Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $365,000, has a four-year life, and requires $153,000 in pretax annual operating costs. System B costs $445,000, has a six-year life, and requires $147,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. Whichever project is chosen, it will not be replaced when it wears out. The...
b) (3+1+3) You are considering a new investment project, which lasts for three years. The project...
b) (3+1+3) You are considering a new investment project, which lasts for three years. The project requires a purchase of a new machine, which costs $300,000. This initial investment can be depreciated to zero over the next three years according to a straight line depreciation rule. The machine has no salvage value at the end. Operating revenue is projected to be $200,000 per year. Operating costs for raw materials are $50,000 The corporate tax rate is 30% and the risk-adjusted...
Machine A which is a basic model costs $25,000 and lasts 5 years. At the end...
Machine A which is a basic model costs $25,000 and lasts 5 years. At the end of the 5 years it has a salvage value of $1,500 and its market value at the end of 3 years is $7,000. An enhanced model, Machine B sells for $36,000 and has a life of 8 years with a salvage value of $8,500. The benefit that these two machines are anticipated to provide is $9,500 per year, indefinitely. Looking at an 8-year window...
Matta Manufacturing is trying to decide between two different conveyor belt systems. System A costs $280,000, has a four-year life, and requires $85,000 in pretax annual operating costs. System B costs $396,000, has a six-year life, and requires $79,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. Suppose the company always needs a conveyor belt system; when one wears out, it must be replaced. Assume...
Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $360,000, has a four-year life, and requires $149,000 in pretax annual operating costs. System B costs $440,000, has a six-year life, and requires $143,000 in pretax annual operating costs. Suppose the company always needs a conveyor belt system; when one wears out, it must be replaced. Assume the tax rate is 24 percent and the discount rate is 10 percent. Calculate the...
Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $360,000, has a four-year life, and requires $149,000 in pretax annual operating costs. System B costs $440,000, has a six-year life, and requires $143,000 in pretax annual operating costs. Suppose the company always needs a conveyor belt system; when one wears out, it must be replaced. Assume the tax rate is 24 percent and the discount rate is 10 percent 4 points...
Matta Manufacturing is trying to decide between two different conveyor belt systems. System A costs $244,000, has a four-year life, and requires $76,000 in pretax annual operating costs. System B costs $342,000, has a six-year life, and requires $70,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. Whichever system is chosen, it will not be replaced when it wears out. The tax rate is 35...
Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems System A costs $300,000, has a four-year life, and requires $101000 in pretax annual operating costs System B costs $380,000, has a six-year life. and requires $95.000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. Whichever project is chosen, it will not be replaced when it wears out the tax...
Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $340,000, has a four-year life, and requires $133,000 in pretax annual operating costs. System B costs $420,000, has a six-year life, and requires $127,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. Whichever project is chosen, it will not be replaced when it wears out. The tax...
23 Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $365,000, has a four-year life, and requires $153,000 in pretax annual operating costs. System B costs $445,000, has a six-year life, and requires $147,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. Whichever project is chosen, it will not be replaced when it wears out. The...
b) (3+1+3) You are considering a new investment project, which lasts for three years. The project requires a purchase of a new machine, which costs $300,000. This initial investment can be depreciated to zero over the next three years according to a straight line depreciation rule. The machine has no salvage value at the end. Operating revenue is projected to be $200,000 per year. Operating costs for raw materials are $50,000 The corporate tax rate is 30% and the risk-adjusted...
Most questions answered within 3 hours.
-
The moment of inertia of a disk rotating about its axis of
symmetry is Icm=1/2MR^2
The...
asked 4 minutes ago -
When using a relational database what makes data
formatting so important and critical to the functions...
asked 15 minutes ago -
The following temperatures show the (fictional) daily low
measured at O'Hare airport every January 1st from...
asked 34 minutes ago -
Your friend is interested in the characteristics of fast tree
planters. He searched through the records...
asked 42 minutes ago -
. 0.67 g of Ag is deposited electrolytically from
AgNO3 after a certain period of time...
asked 43 minutes ago -
assuming that the boric acid, h3po3 present at the end of the
borax tritation has a...
asked 42 minutes ago -
When a carbonate solution is acidified, carbon dioxide is
produced.
2H+(aq) + CO32-(aq) → H2O(l) +...
asked 1 hour ago -
A reaction has the following rate law: Rate =
kr[A][B]2. In experiment 1, the
concentrations of...
asked 1 hour ago -
king owns a large number of public pay phones. as rhe use of
payphones decline deamatically,...
asked 1 hour ago -
3.7 - A book is sitting on a table. The mass of the book
is 1...
asked 1 hour ago -
Which term describes the process by which a single strand of DNA
serves as a template...
asked 1 hour ago -
LAB FOOD DRING
ANSWER THE QUESTIONS:
Q1. What value is the moisture content versus time and...
asked 1 hour ago