subject
Business, 21.12.2019 05:31 arthurdolz

Mountain gear has been using the same machines to make its name brand clothing for the last five years. a cost efficiency consultant has suggested that production costs may be reduced by purchasing more technologically advanced machinery. the old machines cost the company $100,000. the old machines presently have a book value of $60,000 and a market value of $6,000. they are expected to have a five-year remaining life and zero salvage value. the new machines would cost the company $50,000 and have operating expenses of $9,000 a year. the new machines are expected to have a five-year useful life and no salvage value. the operating expenses associated with the old machines are $15,000 a year. the new machines are expected to increase quality, justifying a price increase, and thereby increasing sales revenue by $5,000 a year. select the true statement. a) the company will be $11,000 better off over the 5-year period if it replaces the old equipment. b) the company will be $20,000 better off over the 5-year period if it keeps the old equipment. c) the company will be $12,000 better off over the 5-year period if it replaces the old equipment. d) the company will be $6,000 better off over the 5-year period if it replaces the old equipment.

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 04:10
You are head of the schwartz family endowment for the arts. you have decided to fund an arts school in the san francisco bay area in perpetuity. every 5 years, you will give the school $ 1 comma 000 comma 000. the first payment will occur 5 years from today. if the interest rate is 5.9 % per year, what is the present value of your gift?
Answers: 1
question
Business, 22.06.2019 19:00
Describe how to write a main idea expressed as a bottom-line statement
Answers: 3
question
Business, 23.06.2019 00:20
Barney corporation recognized a $100 million preferred stock balance on 12/31/2019. on january 1, 2020, barney issued $10 million in preferred dividends. on the same date, barney raised an additional $20 million via a new issuance of preferred stock. on december 31, 2020, the market value of the original amount of preferred shares rose $5 million. under us gaap, the 12/31/2020 year ending preferred stock balance is:
Answers: 3
question
Business, 23.06.2019 00:50
According to which act will be the person punished
Answers: 1
You know the right answer?
Mountain gear has been using the same machines to make its name brand clothing for the last five yea...
Questions
question
Chemistry, 14.04.2020 04:14
question
Spanish, 14.04.2020 04:14
question
Mathematics, 14.04.2020 04:15
Questions on the website: 13722359