The cost of using an existing asset: small appliances, inc., is considering starting a new line of business with the excess capacity it currently has on its rivet machine. the current machine is expected to last four years at the current rate of production. however, if a new line of business is taken on, then the machine will have to be replaced in three years instead of four. a new machine that will last four years would cost $50,000. what is the cost of taking on the new line of business? (round to the nearest dollar and assume a 9 percent cost of capital.)

Precision dyes is analyzing two machines to determine which one it should purchase. the company requires a rate of return of 15 percent and uses straight-line depreciation to a zero book value over the life of its equipment. ignore bonus depreciation. machine a has a cost of $462,000, annual aftertax cash outflows of $46,200, and a four-year life. machine b costs $898,000, has annual aftertax cash outflows of $16,500, and has a seven-year life. whichever machine is purchased will be replaced at the end of its useful life. which machine should the company purchase and how much less is that machine's eac as compared to the other machine's

Evan company reports net income of $232,000 each year and declares an annual cash dividend of $100,000. the company holds net assets of $2,130,000 on january 1, 2017. on that date, shalina purchases 40 percent of evan's outstanding common stock for $1,066,000, which gives it the ability to significantly influence evan. at the purchase date, the excess of shalina’s cost over its proportionate share of evan’s book value was assigned to goodwill. on december 31, 2019, what is the investment in evan company balance (equity method) in shalina’s financial records?

In microeconomics, the point at which supply and demand meet is called the blank price