subject
Business, 02.04.2021 20:10 antboozeoszxej

DelRay Foods must purchase a new gumdrop machine. Two machines are available. Machine 7745 has a first cost of $6,200, an estimated life of 10 years, a salvage value of $1,000, and annual operating costs estimated at $0.01 per 1,000 gumdrops. Machine A37Y has a first cost of $8,000, a life of 10 years, and no salvage value. Its annual operating costs will be $240 regardless of the number of gumdrops produced. MARR is 6%/year, and 30 million gumdrops ware produced each year. Required:
a. What is the annual worth of each alternative?
b. What is the decision rule for determining the preferred machine based on annual worth ranking?
c. Which machine should be recommended?
d. Now determine which machine should be recommended based on an incremental annual worth analysis.

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 05:30
Sally is buying a home and the closing date is set for april 20th. the annual property taxes are $1,234.00 and have not been paid yet. using actual days, how much will the buyer be credited and the seller be debited
Answers: 2
question
Business, 22.06.2019 08:00
Companies in the u.s. car rental market vary greatly in terms of the size of the fleet, the number of locations, and annual revenue. in 2011 hertz had 320,000 cars in service and annual revenue of approximately $4.2 billion. the following data show the number of cars in service (1000s) and the annual revenue ($ millions) for six smaller car rental companies (auto rental news website, august 7, 2012). excel file: data14-09.xls if required, enter negative values as negative numbers. a. select a scatter diagram with the number of cars in service as the independent variable. b. what does the scatter diagram developed in part (a) indicate about the relationship between the two variables? c. use the least squares method to develop the estimated regression equation (to 3 decimals). ŷ = + x d. for every additional car placed in service, estimate how much annual revenue will change. by $ e. fox rent a car has 11,000 cars in service. use the estimated regression equation developed in part (c) to predict annual revenue for fox rent a car. round your answer to nearest whole value. $ million hide feedback partially correct
Answers: 1
question
Business, 22.06.2019 08:00
Why is it vital to maintain a designer worksheet? a. it separates the designs chosen for the season from those rejected by the company. b. it keeps a record of all designs created by the designer for a season. c. it charts out the development of an entire line through the season and beyond. d. it tracks the development of a design along with costing and production details. done
Answers: 1
question
Business, 23.06.2019 01:50
Mart's boutique has sales of $820,000 and costs of $540,000. interest expense is $36,000 and depreciation is $59,000. the tax rate is 21 percent. what is the net income? $146,150 221,200 105,000 139,050
Answers: 3
You know the right answer?
DelRay Foods must purchase a new gumdrop machine. Two machines are available. Machine 7745 has a fir...
Questions
question
Mathematics, 24.07.2020 21:01
question
Mathematics, 24.07.2020 21:01
question
Mathematics, 24.07.2020 21:01
question
Mathematics, 24.07.2020 21:01
question
Mathematics, 24.07.2020 21:01
Questions on the website: 13722362