subject
Business, 06.05.2021 23:00 rishiganesh

A. A new operating system for an existing machine is expected to cost $520,000 and have a useful life of six years. The system yields an incremental after-tax income of $150,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. b. A machine costs $380,000, has a $20,000 salvage value, is expected to last eight years, and will generate an after-tax income of $60,000 per year after straight-line depreciation.

Required:
Assume the company requires a 10% rateo return on its vestments. Compute the net present value of each potential investment.

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 19:00
The following are budgeted data: january february march sales in units 16,200 22,400 19,200 production in units 19,200 20,200 18,700 one pound of material is required for each finished unit. the inventory of materials at the end of each month should equal 20% of the following month's production needs. purchases of raw materials for february would be budgeted to be:
Answers: 3
question
Business, 22.06.2019 19:10
Coca-cola was primarily known for its core competencies in marketing, bottling, and distributing aerated drinks. however, with the success of gatorade, coca-cola developed competencies in the development and marketing of its own sports drink, powerade. which of the following is true of coca-cola? a. it is leveraging existing core competencies to improve current market position. b. it is building new core competencies to protect and extend its current market position. c. it is redeploying and recombining existing core competencies to compete in markets of the future. d. it is targeting the chasm between the early adopter and early majority market segment.
Answers: 1
question
Business, 22.06.2019 21:00
Dozier company produced and sold 1,000 units during its first month of operations. it reported the following costs and expenses for the month: direct materials $ 69,000 direct labor $ 35,000 variable manufacturing overhead $ 15,000 fixed manufacturing overhead 28,000 total manufacturing overhead $ 43,000 variable selling expense $ 12,000 fixed selling expense 18,000 total selling expense $ 30,000 variable administrative expense $ 4,000 fixed administrative expense 25,000 total administrative expense $ 29,000 required: 1. with respect to cost classifications for preparing financial statements: a. what is the total product cost
Answers: 2
question
Business, 23.06.2019 00:00
According to the video, the gross national product had declined from $104 billion in 1929 to about in 1933.
Answers: 2
You know the right answer?
A. A new operating system for an existing machine is expected to cost $520,000 and have a useful lif...
Questions
question
Mathematics, 14.05.2021 16:10
question
Mathematics, 14.05.2021 16:10
question
Mathematics, 14.05.2021 16:10
question
Chemistry, 14.05.2021 16:10
question
Mathematics, 14.05.2021 16:10
Questions on the website: 13722363