Business, 26.06.2020 17:01 Lpryor8465

A company owns a milling machine that it is considering replacing. Its current market value is $30,000, but it can be productively used for four more years at which time its market value will be zero. Operating and maintenance expenses are $60,000 per year. The company can purchase a new milling machine, with the same functionality as the current machine, for $90,000. In four years the market value of the new machine is estimated to be $45,000. Annual operating and maintenance costs will be $35,000 per year. Should the old milling machine be replaced using a before-tax MARR of 10% and a study period of four years? Rubric: correct computation of values of defender and challenger , correct steps , and justification Hint: use present worth approach based on compound amount factor, not excel functions. Provide a justification for your decision. Computing the numeric answer(s) is not enough to get full credit.

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 21:30

What is the eventual effect on real gdp if the government increases its purchases of goods and services by $80,000? assume the marginal propensity to consume (mpc) is 0.75. $ what is the eventual effect on real gdp if the government, instead of changing its spending, increases transfers by $80,000? assume the mpc has not changed. $ an increase in government transfers or taxes, as opposed to an increase in government purchases of goods and services, will result in an identical eventual effect on real gdp. a smaller eventual effect on real gdp. a larger eventual effect on real gdp. no change to real gdp.

Answers: 3

Answer

Business, 22.06.2019 01:20

Which of the following statements concerning an organization's strategy is true? a. cost accountants formulate strategy in an organization since they have more inputs about costs. b. businesses usually follow one of two broad strategies: offering a quality product at a high price, or offering a unique product or service priced lower than the competition. c. a good strategy will always overcome poor implementation. d. strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives.

Answers: 1

Answer

Business, 22.06.2019 15:00

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor.required: 1-a. prepare a contribution format income statement for the game last year.1-b. compute the degree of operating leverage.2. management is confident that the company can sell 58,880 games next year (an increase of 12,880 games, or 28%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)

Answers: 2

Answer

Business, 22.06.2019 17:30

What do you think: would it be more profitable to own 200 shares of penny’s pickles or 1 share of exxon? why do you think that?

Answers: 1

Answer

You know the right answer?

A company owns a milling machine that it is considering replacing. Its current market value is $30,0...

Questions