XYZ Inc. has a machine with a book value of $50,000 and a five-year remaining life....
- XYZ Inc. has a machine with a book value of $50,000 and a five-year remaining life. A new machine is available at a cost of $85,000 and XYZ can also receive $38,000 for trading in the old machine. The new machine will reduce variable manufacturing costs by $14,000 per year over its five-year life. Should the machine be replaced?
Homework Answers
Computation of Incremental cost.
Cost of New Machine = ($85,000)
salvage value of old machine = $38,000
Net incremental cost = ($47,000)
Net benefits due to reduction in variable Manufacturing costs = $14,000 * 5 = $70,000.
So, Income will increase by = 70,000 - 47,000 = $23,000
Yes, the machine should be replaced. because Income will increase by $23,000 in total
Add Answer to:
XYZ Inc. has a machine with a book value of $50,000 and a five-year remaining life....
Rory Company has a machine with a book value of $85,000 and a remaining five-year useful life. A new machine is avai...
Rory Company has a machine with a book value of $85,000 and a remaining five-year useful life. A new machine is available at a cost of $121,000, and Rory can also receive $87,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $23,000 per year over its five-year useful life Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.) Incremental Income From Replacing Machine Incremental income (incremental cost)
Rory Company has a machine with a book value of $93.000 and a remaining five-year useful...
Rory Company has a machine with a book value of $93.000 and a remaining five-year useful life. A new machine is available at a cost of $116,000, and Rory can also receive $63,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $16,000 per year over its five-year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.) Incremental Income From Replacing Machine Cost of new machine...
Rory Company has a machine with a book value of $111.000 and a remaining five-year useful...
Rory Company has a machine with a book value of $111.000 and a remaining five-year useful life. A new machine is available at a cost of $120,000, and Rory can also receive $90,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $14,000 per year over its five-year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.) Incremental Income From Replacing Machine Incremental income incremental cost)
Extra Credit - Problems (1) - Protected View - Saved to this PC- Mailings Review View...
Extra Credit - Problems (1) - Protected View - Saved to this PC- Mailings Review View Help Search nless you need to edit, it's safer to stay in Protected View Enable Editing ACG 2071 - Extra Credit Assignment 5. XYZ Inc. has a machine with a book value of $50,000 and a five-year remaining life. A new machine is available at a cost of $85,000 and XYZ can also receive 538,000 for trading in the old machine. The new machine...
Rory Company has a machine with a book value of $113,000 and a remaining five-year useful...
Rory Company has a machine with a book value of $113,000 and a remaining five-year useful life. A new machine is available at a cost of $118,000, and Rory can also receive $68,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $21,000 per year over its five-year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.) Incremental Income From Replacing Machine Incremental income (incremental cost)
Rory Company has a machine with a book value of $113,000 and a remaining five-year useful...
Rory Company has a machine with a book value of $113,000 and a remaining five-year useful life. A new machine is available at a cost of $122,500, and Rory can also receive $75,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $21,500 per year over its five-year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.) Incremental Income From Replacing Machine Incremental income incremental cost)
new five-year remaining life. A receive $38,000 for trading in the old 31. Rocko Inc has...
new five-year remaining life. A receive $38,000 for trading in the old 31. Rocko Inc has a machine with a book value of $50,000 and a machine is available at a cost of $85,000 and Rocko can also machine. The now five-year iMe. Should the machine be replaced? A Yes, because income will increase by $23,000 per year. machine will reduce variable manufacturing costs by $14,000 per year over B. Yes, because income will increase by $14,000 in total C....
Sooky has a spotter truck with a book value of $40,000 and a remaining useful life...
Sooky has a spotter truck with a book value of $40,000 and a remaining useful life of five years. At the end of the five years the spotter truck will have a zero salvage value. The market value of the spotter truck is currently $32,000. Sooky can purchase a new spotter truck for $120,000 and receive $31.000 in return for trading in its old spotter truck. The new spotter truck will reduce variable manufacturing costs by $25,000 per year over...
18 - Riener Hospital has an x-ray machine with a book value of $60,000 and a remaining useful life of three years. At th...
18 - Riener Hospital has an x-ray machine with a book value of $60,000 and a remaining useful life of three years. At the end of the three years the equipment will have a zero salvage value. The market value of the equipment is currently $32,000. Riener can purchase a new machine for $145,000 and receive $28,000 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $27,000 per year over the three-year...
Bryant Company has a factory machine with a book value of $90,000 and a remaining useful...
Bryant Company has a factory machine with a book value of
$90,000 and a remaining useful life of 5 years. It can be sold for
$30,000. A new machine is available at a cost of $400,000. This
machine will have a 5-year useful life with no salvage value. The
new machine will lower annual variable manufacturing costs from
$600,000 to $500,000. Prepare an analysis showing whether the old
machine should be retained or replaced. (Enter negative
amounts using either a...
Rory Company has a machine with a book value of $85,000 and a remaining five-year useful life. A new machine is available at a cost of $121,000, and Rory can also receive $87,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $23,000 per year over its five-year useful life Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.) Incremental Income From Replacing Machine Incremental income (incremental cost)
Rory Company has a machine with a book value of $93.000 and a remaining five-year useful life. A new machine is available at a cost of $116,000, and Rory can also receive $63,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $16,000 per year over its five-year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.) Incremental Income From Replacing Machine Cost of new machine...
Rory Company has a machine with a book value of $111.000 and a remaining five-year useful life. A new machine is available at a cost of $120,000, and Rory can also receive $90,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $14,000 per year over its five-year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.) Incremental Income From Replacing Machine Incremental income incremental cost)
Extra Credit - Problems (1) - Protected View - Saved to this PC- Mailings Review View Help Search nless you need to edit, it's safer to stay in Protected View Enable Editing ACG 2071 - Extra Credit Assignment 5. XYZ Inc. has a machine with a book value of $50,000 and a five-year remaining life. A new machine is available at a cost of $85,000 and XYZ can also receive 538,000 for trading in the old machine. The new machine...
Rory Company has a machine with a book value of $113,000 and a remaining five-year useful life. A new machine is available at a cost of $118,000, and Rory can also receive $68,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $21,000 per year over its five-year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.) Incremental Income From Replacing Machine Incremental income (incremental cost)
Rory Company has a machine with a book value of $113,000 and a remaining five-year useful life. A new machine is available at a cost of $122,500, and Rory can also receive $75,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $21,500 per year over its five-year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.) Incremental Income From Replacing Machine Incremental income incremental cost)
new five-year remaining life. A receive $38,000 for trading in the old 31. Rocko Inc has a machine with a book value of $50,000 and a machine is available at a cost of $85,000 and Rocko can also machine. The now five-year iMe. Should the machine be replaced? A Yes, because income will increase by $23,000 per year. machine will reduce variable manufacturing costs by $14,000 per year over B. Yes, because income will increase by $14,000 in total C....
Sooky has a spotter truck with a book value of $40,000 and a remaining useful life of five years. At the end of the five years the spotter truck will have a zero salvage value. The market value of the spotter truck is currently $32,000. Sooky can purchase a new spotter truck for $120,000 and receive $31.000 in return for trading in its old spotter truck. The new spotter truck will reduce variable manufacturing costs by $25,000 per year over...
Bryant Company has a factory machine with a book value of
$90,000 and a remaining useful life of 5 years. It can be sold for
$30,000. A new machine is available at a cost of $400,000. This
machine will have a 5-year useful life with no salvage value. The
new machine will lower annual variable manufacturing costs from
$600,000 to $500,000. Prepare an analysis showing whether the old
machine should be retained or replaced. (Enter negative
amounts using either a...
Most questions answered within 3 hours.
-
convert grams into vloume with the density of water being at
.997514 g/cm^3 at 23.1 Celsuis...
asked 1 hour ago -
Foreman company obtained a $20,000, 6% loan on May 1, 2018.
Principal and interest will be...
asked 1 hour ago -
5. Problem 11.05 (Discounted Payback)
eBook
Project L costs $60,000, its expected cash inflows are $14,000
per...
asked 2 hours ago -
1. Which of the following is true about politics and health
organizations?
A. Health organizations are...
asked 2 hours ago -
A space vehicle is coasting at a constant velocity of 18.1 m/s
in the +y direction...
asked 3 hours ago -
5) Use the following balanced equation to answer questions
(a)-(i).
3 Cu(s) + 8 HNO3(aq) →...
asked 3 hours ago -
A three-year maturity bond with a 12% annual coupon rate is
currently traded at par $1000...
asked 3 hours ago -
1.
What is the minimum volume to use in the Spec 20 cuvette in order
to...
asked 4 hours ago -
A builder wants to install wall-to-wall carpeting in a living
room of length 8.87 m and...
asked 3 hours ago -
Organizational change can produce anxiety in those affected by
the change. In what ways can change...
asked 4 hours ago -
Ozone in the atmosphere may react with nitric oxide.
From the following data, calculate the DG...
asked 4 hours ago -
Steven Long, a bond analyst, is analyzing a convertible bond.
The characteristics of the bond are...
asked 4 hours ago