QZY, Inc. is evaluating new widget machines offered by three companies. The machines have the following characteristics:
Question:
MARR = 15%. Using rate of return analysis, from which company, if any, should you purchase the widget machine?
Transcribed Image Text:
Company Compy Company First cost Maintenance S15,000 $25.000 $20,000 900 1,600 400 and operating Annual benefit Salvage value Usetul life 8,000 3,000 13,000 6,000 9,000 4,500 4 in years
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (7 reviews)
1 Arrange the alternatives in ascending order of investment Company A Company C Company B First Cost ...View the full answer
Answered By
Caroline Kinuthia
Taking care of the smaller details in life has a larger impact in our general well being, and that is what i believe in. My name is Carol. Writing is my passion. To me, doing a task is one thing, and delivering results from the task is another thing. I am a perfectionist who always take things seriously and deliver to the best of my knowledge.
4.90+
1933+ Reviews
4273+ Question Solved
Related Book For
Engineering Economic Analysis
ISBN: 9780195168075
9th Edition
Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle
Question Posted:
Students also viewed these Accounting questions
-
Three machines produce the same part. Ten different machine operators work these machines. A quality team wants to determine whether the machines are producing parts that are significantly different...
-
A rate of return analysis was initiated for the infinite- life alternatives shown below. (a) Fill in the 10 blanks in the incremental rate of return (Îi*) columns. (b) How much revenue is...
-
The famous Widget Company sells widgets at the rate of 80,000 units per year. Each widget sells for $100, and it costs 30 percent to carry widgets in inventory for a year. The process of widget...
-
The condensed financial statements of Soule SpA for the years 2016 and 2017 are presented as follows. SOULE SpA Statements of Financial Position December 31 SOULE SpA Income Statements For the Years...
-
Using Rocky Mountain Outfitters and the customer support subsystem as your guide, develop a list of all the procedures that may need to be researched. You may want to think about the exercise in the...
-
Indicate whether each of the following statements is true or false. If the statement is false, change it to make it true. a. Positive analysis imposes the value judgments of one individual on the...
-
Henry Ford established Ford Motor Company in 1903 in Dearborn, Michigan. At this time, only the rich could afford to purchase vehicles, and Ford wanted to make a vehicle that the common person could...
-
Shao Airlines is considering two alternative planes. Plane A has an expected life of 5 years, will cost $100 million, and will produce net cash flows of $30 million per year. Plane B has a life of 10...
-
How can the presence of subcultures within a larger organizational culture affect both alignment with corporate values and overall organizational performance?
-
Bluetooth supports two types of links between a master and a slave. What are they and what is each one used for?
-
A more detailed examination of the situation in Problem 8-2 reveals that there are two additional mutually exclusive alternatives to be considered. Both cost more than the $1300 for the four original...
-
A firm must decide which of three alternatives to adopt to expand its capacity. The firm wishes a minimum annual profit of 20% of the initial cost of each separable increment of investment.. Any...
-
In the Exercise, determine the linear correlation coefficient by using. a. Definition 4.8 b. Formula 4.3 Compare your answers in parts (a) and (b). Linear Correlation Coefficient For a set of n data...
-
An employee working in a room measuring 15 ft x 20 ft x 15 ft sprays paint assembly parts using a paint containing hexane. The PEL for hexane is 500 ppm. The employee wears a half-face, air-purifying...
-
Three students Tom, Jack and Billy are discussing why the two-dimensional velocity field can be represented solely by a scalar here. Tom thinks this representation assumes a high Reynolds number...
-
A tensile member made of AISI 1020 hot-rolled steel is being designed for a car. It must withstand a repeated load of 4200 N and not elongate more than 0.12 mm in its 630-mm length. Use a design...
-
Record transactions of selling company. DO IT ! 5 . 3 ( L 0 3 ) , AP On October 5 , Iresson Company burys merchandise on account from Lasse Company. The selling price of the goods is $ 5 , 0 0 0 ,...
-
A lump of iron of mass 5 . 6 4 3 kg is suspended ( completely immersed ) in a brine solution of density 1 0 8 5 kg m - 3 The volume of the iron is 0 . 0 0 0 7 1 7 m 3 . Calculate the upthrust on the...
-
Complete the following program so it performs the following actions 10 times: Generates a random number that is either 0 or 1. Displays either the word Yes or the word No depending on the random...
-
Under what conditions is the following SQL statement valid?
-
Financial statements for Askew Industries for 2013 are shown below: Required: Calculate the following ratios for 2013. 1. Inventory turnover ratio 2. Average days in inventory 3. Receivables turnover...
-
Jerry's Ice Cream Parlor is considering a marketing plan to increase sales of ice cream cones. The plan will give customers a free ice cream cone if they buy 10 ice cream cones at regular prices....
-
Jerry's Ice Cream Parlor is considering a marketing plan to increase sales of ice cream cones. The plan will give customers a free ice cream cone if they buy 10 ice cream cones at regular prices....
-
What choice is a multiple of 5? a) 93 b) 63 c) 65 d) 84
-
Determine how many tablets will be needed to give the dosage. Prepare a dosage of 6.4 mg using tablets with a strength of 1.6 mg.
-
(a). Company Inc., private consumer regulator firm, claims that the standard deviation of the rating of Formula One races in the town main car racing circuit was at least 15.34. (b). An outside...
Study smarter with the SolutionInn App