Question

You are considering purchasing a CNC machine which costs $160,000. This machine will have an estimated service life of 12 yea

Single Payment Compound Present Amount Worth Factor Factor (F/P, I, N) (P/F, I, N) 1.1600 0.8621 1.3456 0.7432 1.5609 0.6407
0 0
Add a comment Improve this question Transcribed image text
Answer #1


Solution: Initial cost=(after tax revenue -after tax operating and maint. Cost)*(P/A,16%,12)+After tax salvage*(P/F,16%,12) L

Add a comment
Know the answer?
Add Answer to:
You are considering purchasing a CNC machine which costs $160,000. This machine will have an estimated service li...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Problem 10-1 (algorithmic) Consider a piece of equipment that has the following cost and benefit ...

    Problem 10-1 (algorithmic) Consider a piece of equipment that has the following cost and benefit estimates, and the interest rate is 16% per year Initial investment: $250,000 Equipment life: 12 years Salvage value: $13,000 Annual receipts: $60,000 Annual expenses: $39,000 What is the modified B/C ratio of this equipment? Click the icon to view the interest and annuity table for discrete compounding when i-16% per year. Thr modified cost-benefit ratio is(Round to two decimal places.) Enter your answer in the...

  • 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...

  • 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 $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...

  • 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 $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...

  • there are two parts as a and b. i have 15 hours to submit. thank you...

    there are two parts as a and b. i have 15 hours to submit. thank you Homework: hw8 Yesim Demir & 13/05/2016:18 PM Score: 0 of 1 pt Save 3 of 3 (1 completo Instructor-created question HW Score: 33 33%, 1 of 3 pts Question Help Tucson Solar Company builds residential solar homes. Because of an anticipated increase in business volume the company is considering the action of a loader at a cost of $51000. This studies delivery charges and...

  • Trew Company plans to issue bonds with a face value of $906,500 and a coupon rate...

    Trew Company plans to issue bonds with a face value of $906,500 and a coupon rate of 6 percent. The bonds will mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds are sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.) Determine the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT