Business, 03.12.2021 20:40 genyjoannerubiera

A machine purchased 2 years ago for $50,000 is now too slow to satisfy present demand. The machine can be upgraded now for $16,000 or sold for $6,000 (that is, first cost of $22,000). The current machine will have a constant annual operating cost of $27,000 per year and a salvage value of $12,000 in 3 years. If current machine is upgraded, it will definitely be retained for 3 more years before it is replaced. Alternatively, the current machine can be replaced with a new equipment costing $75,000, constant annual operating costs of $12,000 per year and an expected salvage of $23,000 after 3 years. Determine the annual worth of the challenger and defender at MARR of 8% per year using a 3-year planning horizon.

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 18:30

What is product differentiation, and how can it be achieved ? what is product positioning? what conditions would head to head product positioning be appropriate?

Answers: 2

Answer

Business, 22.06.2019 10:00

University car wash built a deluxe car wash across the street from campus. the new machines cost $219,000 including installation. the company estimates that the equipment will have a residual value of $19,500. university car wash also estimates it will use the machine for six years or about 12,500 total hours. actual use per year was as follows: year hours used 1 3,100 2 1,100 3 1,200 4 2,800 5 2,600 6 1,200 prepare a depreciation schedule for six years using the following methods: 1. straight-line. 2. double-declining-balance. 3. activity-based.

Answers: 1

Answer

Business, 22.06.2019 11:00

Factors like the unemployment rate,the stock market,global trade,economic policy,and the economic situation of other countries have no influence on the financial status of individuals. true or false

Answers: 1

Answer

Business, 22.06.2019 12:30

howard, fine, & howard is an advertising agency. the firm uses an activity-based costing system to allocate overhead costs to its services. information about the firm's activity cost pool rates follows: stooge company was a client of howard, fine, & howard. recently, 7 administrative assistant hours, 3 new ad campaigns, and 8 meeting hours were incurred for the stooge company account. using the activity-based costing system, how much overhead cost would be allocated to the stooge company account?

Answers: 1

Answer

You know the right answer?

A machine purchased 2 years ago for $50,000 is now too slow to satisfy present demand. The machine c...

Questions