5 Information for two alternative projects involving machinery Investments follows: Initial investment Project 1 $ (122,000)...

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5 Information for two alternative projects involving machinery Investments follows: Initial investment Project 1 $ (122,000) Project 2 $ (92,000) e 15,250 01:51:43 Salvage value Annual income 12,000 12,480 a. Compute accounting rate of return for each project. b. Based on accounting rate of return, which project is preferred? Complete this question by entering your answers in the tabs below. Required A Required B Compute accounting rate of return for each project. Project 1 Project 2 Accounting Rate of Return Numerator: 1 Denominator: = Accounting rate of return Required A Required B 5 Information for two alternative projects involving machinery Investments follows: 01:51:19 Initial investment Salvage value Annual income Project 1 $ (122,000) Project 2 $ (92,000) в 12,000 15,250 12,480 a. Compute accounting rate of return for each project. b. Based on accounting rate of return, which project is preferred? Complete this question by entering your answers in the tabs below. Required A Required B Based on accounting rate of return, which project is preferred? Based on accounting rate of return, is preferred. < Required A Required B 4 01:52:57 Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $46,000 and a remaining useful life of five years. It can be sold now for $56,000. Variable manufacturing costs are $43,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years. Purchase price Variable manufacturing costs per year Machine A $ 123,000 20,000 Machine B $ 135,000 15,000 (a) Compute the Income Increase or decrease from replacing the old machine with Machine A. (b) Compute the Income increase or decrease from replacing the old machine with Machine B. (c) Should Lopez keep or replace its old machine? (d) If the machine should be replaced, which new machine should Lopez purchase? Complete this question by entering your answers in the tabs below. Req A Req B Req C and D Compute the income increase or decrease from replacing the old machine with Machine A. (Amounts to be deducted should be indicated with a minus sign.) Machine A: Keep or Replace Analysis Keep Replace Income Increase (Decrease) from Replacing Revenues Sale of existing machine Costs Purchase of new machine Variable manufacturing costs Income (loss) <Reg A Req B > 4 Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $46,000 and a remaining useful life of five years. It can be sold now for $56,000. Variable manufacturing costs are $43,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years. 01:52:29 Purchase price Variable manufacturing costs per year Machine A Machine B $ 123,000 20,000 $ 135,000 15,000 (a) Compute the Income Increase or decrease from replacing the old machine with Machine A. (b) Compute the income increase or decrease from replacing the old machine with Machine B. (c) Should Lopez keep or replace its old machine? (d) If the machine should be replaced, which new machine should Lopez purchase? Complete this question by entering your answers in the tabs below. Req A Req B Req C and D Compute the income increase or decrease from replacing the old machine with Machine B. (Amounts to be deducted should be indicated with a minus sign.) Machine B: Keep or Replace Analysis Keep Replace Income Increase (Decrease) from Replacing Revenues Sale of existing machine Costs Purchase of new machine Variable manufacturing costs Income (loss) < Req A Req C and D > 4 Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $46,000 and a remaining useful life of five years. It can be sold now for $56,000. Variable manufacturing costs are $43,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years. 01.52.09 Purchase price Variable manufacturing costs per year Machine A Machine B $ 123,000 20,000 $ 135,000 15,000 (a) Compute the Income Increase or decrease from replacing the old machine with Machine A. (b) Compute the Income increase or decrease from replacing the old machine with Machine B. (c) Should Lopez keep or replace its old machine? (d) If the machine should be replaced, which new machine should Lopez purchase? Complete this question by entering your answers in the tabs below. Req A Req B Req C and D (c) Should Lopez keep or replace its old machine? (d) If the machine should be replaced, which new machine should Lopez purchase? (c) Should Lopez keep or replace its old machine? (d) Which new machine should Lopez purchase? < Req B Req C and D > 5 Information for two alternative projects involving machinery Investments follows: Initial investment Project 1 $ (122,000) Project 2 $ (92,000) e 15,250 01:51:43 Salvage value Annual income 12,000 12,480 a. Compute accounting rate of return for each project. b. Based on accounting rate of return, which project is preferred? Complete this question by entering your answers in the tabs below. Required A Required B Compute accounting rate of return for each project. Project 1 Project 2 Accounting Rate of Return Numerator: 1 Denominator: = Accounting rate of return Required A Required B 5 Information for two alternative projects involving machinery Investments follows: 01:51:19 Initial investment Salvage value Annual income Project 1 $ (122,000) Project 2 $ (92,000) в 12,000 15,250 12,480 a. Compute accounting rate of return for each project. b. Based on accounting rate of return, which project is preferred? Complete this question by entering your answers in the tabs below. Required A Required B Based on accounting rate of return, which project is preferred? Based on accounting rate of return, is preferred. < Required A Required B 4 01:52:57 Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $46,000 and a remaining useful life of five years. It can be sold now for $56,000. Variable manufacturing costs are $43,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years. Purchase price Variable manufacturing costs per year Machine A $ 123,000 20,000 Machine B $ 135,000 15,000 (a) Compute the Income Increase or decrease from replacing the old machine with Machine A. (b) Compute the Income increase or decrease from replacing the old machine with Machine B. (c) Should Lopez keep or replace its old machine? (d) If the machine should be replaced, which new machine should Lopez purchase? Complete this question by entering your answers in the tabs below. Req A Req B Req C and D Compute the income increase or decrease from replacing the old machine with Machine A. (Amounts to be deducted should be indicated with a minus sign.) Machine A: Keep or Replace Analysis Keep Replace Income Increase (Decrease) from Replacing Revenues Sale of existing machine Costs Purchase of new machine Variable manufacturing costs Income (loss) <Reg A Req B > 4 Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $46,000 and a remaining useful life of five years. It can be sold now for $56,000. Variable manufacturing costs are $43,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years. 01:52:29 Purchase price Variable manufacturing costs per year Machine A Machine B $ 123,000 20,000 $ 135,000 15,000 (a) Compute the Income Increase or decrease from replacing the old machine with Machine A. (b) Compute the income increase or decrease from replacing the old machine with Machine B. (c) Should Lopez keep or replace its old machine? (d) If the machine should be replaced, which new machine should Lopez purchase? Complete this question by entering your answers in the tabs below. Req A Req B Req C and D Compute the income increase or decrease from replacing the old machine with Machine B. (Amounts to be deducted should be indicated with a minus sign.) Machine B: Keep or Replace Analysis Keep Replace Income Increase (Decrease) from Replacing Revenues Sale of existing machine Costs Purchase of new machine Variable manufacturing costs Income (loss) < Req A Req C and D > 4 Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $46,000 and a remaining useful life of five years. It can be sold now for $56,000. Variable manufacturing costs are $43,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years. 01.52.09 Purchase price Variable manufacturing costs per year Machine A Machine B $ 123,000 20,000 $ 135,000 15,000 (a) Compute the Income Increase or decrease from replacing the old machine with Machine A. (b) Compute the Income increase or decrease from replacing the old machine with Machine B. (c) Should Lopez keep or replace its old machine? (d) If the machine should be replaced, which new machine should Lopez purchase? Complete this question by entering your answers in the tabs below. Req A Req B Req C and D (c) Should Lopez keep or replace its old machine? (d) If the machine should be replaced, which new machine should Lopez purchase? (c) Should Lopez keep or replace its old machine? (d) Which new machine should Lopez purchase? < Req B Req C and D >