Business, 07.05.2021 15:30 bayloann3928

BSU Inc, wants to purchase a new machine for $48, 200, excluding $1, 500 of installation costs. The old machine was bought five years ago and had an expected economic life of 10 years without salvage value. This old machine now has a book value of $2,000, and BSU Inc. expects to sell it for that amount. The new machine would decrease operating costs by $10,000 each year of its economic life. The straight-line depreciation method would be used for the new machine, for a six-year period with no salvage value. a) Determine the cash payback period.
b) Determine the approximate internal rate of return.
c) Assuming the company has a required rate of return of 5%, determine whether the new machine should be purchased.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 12:00

Select the correct answer. martha is a healer, a healthcare provider, and an experienced nurse. she wants to share her daily experiences, as well as her 12 years of work knowledge, with people who may be interested in health and healing. which mode of internet communication can martha use? a. wiki b. email c. message board d. chat e. blog

Answers: 2

Answer

Business, 22.06.2019 16:30

Penelope summers received certain income benefits in 2018. she received $1,400 of state unemployment insurance benefits, $2,000 from a federal unemployment trust fund and $3,700 workers’ compensation received for an occupational injury. what amount of the compensation must penelope include in her income

Answers: 1

Answer

Business, 22.06.2019 17:10

Calculate riverside’s financial ratios for 2014. assume that riverside had $1,000,000 in lease payments and $1,400,000 in debt principal repayments in 2014. (hint: use the book discussion to identify the applicable ratios.)

Answers: 3

Answer

Business, 22.06.2019 20:20

Direct materials (4.2 x $15) $ 63direct labor ($12 x 17.5) $210manufacturing overhead ($2.40 x 17.5) $42total job cost $ 315dougan, inc. allocates overhead based on a predetermined overhead rate of $2.40 per direct labor hour. employees are paid $12.00 per hour. job 24 requires 4.2 pounds of direct materials at a cost of $15.00 per pound. employees worked a total of 17.5 hours to complete the job. actual manufacturing overhead costs totaled $80,000 for the year for the company. how much is the cost of job 24?

Answers: 1

Answer

You know the right answer?

BSU Inc, wants to purchase a new machine for $48, 200, excluding $1, 500 of installation costs. The...

Questions