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, 22.06.2019 13:20

Last year, johnson mills had annual revenue of $37,800, cost of goods sold of $23,200, and administrative expenses of $6,300. the firm paid $700 in dividends and had a tax rate of 35 percent. the firm added $2,810 to retained earnings. the firm had no long-term debt. what was the depreciation expense?

Answers: 2

Answer

Business, 22.06.2019 18:50

Dominic is the founder of an innovative "impromptu catering" business that provides elegant, healthy party food and decorations on less than 24 hours' notice. the company has grown by over 150 percent in the past year. dominic credits some of the company's success to studying the strategies of prominent social entrepreneurs, such as wikipedia's jimmy wales. what can dominic do to exemplify the social entrepreneurship model?

Answers: 2

Answer

Business, 22.06.2019 20:00

Lillypad toys is a manufacturer of educational toys for children. six months ago, the company's research and development division came up with an idea for a unique touchscreen device that can be used to introduce children to a number of foreign languages. three months ago, the company produced a working prototype, and last month the company successfully launched its new device on the commercial market. what should lillypad's managers prepare for next? a. increased competition from imitators b. a prolonged period of uncontested success c. a sharp decline in demand for the product d. a difficult struggle to move from invention to innovation

Answers: 2

Answer

Business, 22.06.2019 21:10

Which statement or statements are implied by equilibrium conditions of the loanable funds market? a firm borrowing in the loanable funds market invests those funds with a higher expected return than any firm that is not borrowing. investment projects which use borrowed funds are guaranteed to be profitable even after paying interest expenses. the quantity of savings is maximized, thus the quantity of investment is maximized. a loan is made at the minimum interest rate of all current borrowing.

Answers: 3

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