Why the answer is not B? I calculate that PV=9607.33.Homework Answers
Answer - $14410.99
In current situation the company has a present value of expense of $24018.32 ( present value) and after replacement the company will be incurring only $9607.33 ( present value) so comapco should spend maximum 24018.32 - 9607.33 = 14410.99 to replace the new machine. Any amount above that would make the company incur more than what the company is incurring currently.
If the solution helped, please give it a thumbs up. Thank you.
Add Answer to:
Why the answer is not B? I calculate that PV=9607.33.
93 A currently used machine costs...
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 $7000.00. d. Machine B because the EAC equivalent annual...
11. A potential replacement machine, Machine New, is expected to produce the following real cash flows:...
11. A potential replacement machine, Machine New, is expected to produce the following real cash flows: Machine New Co -120 Cash Flows ($ thousands) C1 +110 C2 +121 C3 +133 The currently used machine, Machine Old, was purchased 5 years ago for $200,000 and produces an annual real cash flow of $80,000. It has no salvage value but is expected to last another 5 years. The company can replace Machine Old with Machine New either now or at the end...
Songo currently uses a manufacturing machine that costs $6,500 per year to operate. The machine originally...
Songo currently uses a manufacturing machine that costs $6,500 per year to operate. The machine originally cost $12,000 and had a 10 year useful life. The machine is currently 7 years old, after the remaining 3 years, the machine will be disposed of for $5,000. They have the option of purchasing a new machine for $15,000, which also has a useful life of 10 years, but it only costs $2,000 to operate per year. If Songo were to scrap the...
When evaluating whether a currently used machine should be replaced and when the initial cost of...
When evaluating whether a currently used machine should be replaced and when the initial cost of acquiring the existing machine (the defender) Select one a. needs to be included with a negative sign, without any discounting, in calculating the present worth of the decision to replace. b. should be forwarded to the future worth as of the current year and included in the project's cash flows. should not be included among the cash flows relevant for making the decision whether...
Question 27 Machine B is expected to produce the following real cash flows: Machine B CO...
Question 27 Machine B is expected to produce the following real cash flows: Machine B CO -120 C 1 130 Cash flows C2 141 15.3 Machine C was purchased five years ago and produces an annual real cash flow of $75,000. It has no salvage value but is expected to last another five years. The company can replace machine C with machine B either now or at the end of five years. The real opportunity cost of capital is 10%....
Need helps on parts B, C, E,and F Costs of installing rooftop solar PV : Calculate...
Need helps on parts B, C, E,and F Costs of installing rooftop solar PV : Calculate out-of-pocket costs and payback time for a rooftop solar installation. Assume that this PV system measures 6 m x 5 m and that the panels are 20% efficient. (a) Peak power rating: The solar industry describes the “peak wattage” of a PV system as its power output at a hypothetical, industry-standard irradiance of 1000 W/m2. What would be the peak wattage (in W) of...
PV PROFILE QUESTION Canada Sports Inc. is expanding its hockey stick production. Currently they produce...
PV PROFILE QUESTION Canada Sports Inc. is expanding its hockey stick production. Currently they produce goalie sticks made out of wood only. They want to expand in to new sticks which are 100 percent composite with foam injected in the shaft and blade. The advantage of the new sticks is that they are extremely light and have good shock absorption. To produce the new sticks Canada Sports Inc. needs to purchase specialized machinery to inject the foam into the...
x Company must replace one of its current machines with either Machine A or Machine B....
x Company must replace one of its current machines with either Machine A or Machine B. The useful life of Last year, X Company sold 64,200 units of its only product for $18.00 each. Total costs were as follows: both machines is seven years. Machine A costs $50,000, and Machine B costs $63,000. Estimated annual cash flows with the two machines are as Cost of goods sold Variable $483,426 follows: 131,610 Fixed Machine Machine Selling and Year A. administrative 1...
ENGR 1110 Comparing Economic Alternatives Two machines are being considered for the same task. Machine A costs $18,...
ENGR 1110 Comparing Economic Alternatives Two machines are being considered for the same task. Machine A costs $18,000 new and is estimated to last 6 years. The cost to replace machine A after 6 years will be $23,000. Machine A will cost $1,200 per year to operate/maintain and it will have a trade-in (salvage) value of $1,500. Machine B costs $38,000 to buy, will last 12 years and will have a trade in value of $2,000. The cost of operation...
Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two types of machines that w...
Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two types of machines that would be appropriate are presently on the market. The company has determined the following: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Machine A could be purchased for $16,500. It will last 10 years with annual maintenance costs of $600 per year....
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 $7000.00. d. Machine B because the EAC equivalent annual...
11. A potential replacement machine, Machine New, is expected to produce the following real cash flows: Machine New Co -120 Cash Flows ($ thousands) C1 +110 C2 +121 C3 +133 The currently used machine, Machine Old, was purchased 5 years ago for $200,000 and produces an annual real cash flow of $80,000. It has no salvage value but is expected to last another 5 years. The company can replace Machine Old with Machine New either now or at the end...
When evaluating whether a currently used machine should be replaced and when the initial cost of acquiring the existing machine (the defender) Select one a. needs to be included with a negative sign, without any discounting, in calculating the present worth of the decision to replace. b. should be forwarded to the future worth as of the current year and included in the project's cash flows. should not be included among the cash flows relevant for making the decision whether...
Question 27 Machine B is expected to produce the following real cash flows: Machine B CO -120 C 1 130 Cash flows C2 141 15.3 Machine C was purchased five years ago and produces an annual real cash flow of $75,000. It has no salvage value but is expected to last another five years. The company can replace machine C with machine B either now or at the end of five years. The real opportunity cost of capital is 10%....
x Company must replace one of its current machines with either Machine A or Machine B. The useful life of Last year, X Company sold 64,200 units of its only product for $18.00 each. Total costs were as follows: both machines is seven years. Machine A costs $50,000, and Machine B costs $63,000. Estimated annual cash flows with the two machines are as Cost of goods sold Variable $483,426 follows: 131,610 Fixed Machine Machine Selling and Year A. administrative 1...
ENGR 1110 Comparing Economic Alternatives Two machines are being considered for the same task. Machine A costs $18,000 new and is estimated to last 6 years. The cost to replace machine A after 6 years will be $23,000. Machine A will cost $1,200 per year to operate/maintain and it will have a trade-in (salvage) value of $1,500. Machine B costs $38,000 to buy, will last 12 years and will have a trade in value of $2,000. The cost of operation...
Most questions answered within 3 hours.
-
Deacon Corporation has provided the following financial data
from its balance sheet and income statement:
Year...
asked 39 minutes ago -
List and discuss at least three variables from everyday life for
which you expect the variable ...
asked 38 minutes ago -
A high-pass filter consists of a 1.60 μF capacitor in series
with a 125 Ω resistor....
asked 40 minutes ago -
A newly developed artificial intelligence has trouble
distinguishing hand-written numbers from hand-written alphabets.
There are pictures...
asked 57 minutes ago -
The carbonate ion CO3 2- has multiple resonance structures.
a. Draw them and assign the hybridization...
asked 50 minutes ago -
In doing an allocation for a basket purchase
Use the individual costs and the total market...
asked 58 minutes ago -
what were the social political and economic causes and impacts of
the late 19th century urban...
asked 56 minutes ago -
if the magnitude of a velocity vector is 10m/s and it
makes an angle of 45...
asked 58 minutes ago -
Which amino acid has a basic R group?
A) tyrosine
B) Isoleucine
C) Glutamic Acid
D)...
asked 1 hour ago -
Is there the need for the government to have hackers. Please
share your thoughts.
asked 1 hour ago -
Explain why you should not lose any LDH activity when you
centrifuge a crude sample at...
asked 1 hour ago -
An AA battery (object), standing on end, is placed to the left
of a diverging lens...
asked 1 hour ago