Question: A machine tool, which has been used in a plant for 10 years, is being considered for replacement. It cost $9500 and was depreciated by

A machine tool, which has been used in a plant for 10 years, is being considered for replacement. It cost $9500 and was depreciated by MACRS depreciation using a 5-year recovery period. An equipment dealer indicates that the machine has no resale value. Maintenance on the machine tool has been a problem, with an $800 cost this year. Future annual maintenance costs are expected to be higher. What is the economic life of this machine tool if it is kept in service?

Step by Step Solution

★★★★★

3.43 Rating (169 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

With no resale value and maintenance costs that are expected ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

7-B-E-M (399).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

For the past decade, rubber powder has been used in asphalt cement to improve performance. The article "Experimental Study of Recycled Rubber-Filled High-Strength Concrete" (Magazine of Concrete...

For Roche Inc., variable manufacturing overhead costs are expected to be $20,000 in the first quarter of 2022, with $5,000 increments in each of the remaining three quarters. Fixed overhead costs are...

The randomized block design has been used in comparing the effectiveness of three treatments, with the data as shown in the table. Using the 0.05 level of significance, can we conclude that the...

a) What is the CFo (initial outlay) for this project? (without excel) b) What is the terminal cash flow associated with this project? (without excel) CURRENT MACHINE Purchased Two Years Ago Purchase...

1. You have been tasked by your manager to evaluate the efficacy of purchasing a special piece of machinery to meet anticipated future demand. The machine will cost $100,000 installed with a...

I NEED ANSWER FOR ALL QUESTIONS QUESTION 2: Darul Iman Bhd is a chemical manufacturing company in Kerteh Industrial Park, Terengganu. Due to the increase in the chemical products in the area, on 1...

Hello, I need help with a homework problem due tomorrow night that I've gotten behind completing. I have attached Course Reading for the week for background information, assignment prompt, and the...

Relevant cash flows-No terminal value Central Laundry and Cleaners is considering replacing an existing piece of machinery with a more sophisticated machine. The old machine was purchased 3 years ago...

Developing Relevant Cash Flows for Part-Time Student Company's Machine Renewal or Replacement Decision Mclovin, chief financial officer of Part-Time Student Company (PTSC), expects the firm's net...

GENERAL INSTRUCTION : For problem solving, round off your answers to nearest peso. Answers should have NO peso sign. Example : 2,487,159 1. The SYD method of depreciation is being used for a machine...

In constructing a Householder matrix to zero out the last n - l of a vector x in Rn, the scalar a must satisfy || = ||x||2. Instead of always taking a = ||x||2. it is customary to choose a = -||x||2...

Compute the Monthly Loan Payment using the template shown. You want to buy a 2019 Toyota Highlander, priced at 47,605. You have a down payment of $5,000. You want the balance to be in a 5-year loan....

View Policies Current Attempt in Progress Who generally makes more money over time? Someone who buys stock with a low spread price. Someone who owns assets that generate a profit. Someone who obtains...

find a basis for the Null space of the matix 3 A= 6 L4 -15 2 2 10 -8 34 18 -13 -27 3 d. 3. 4. S1 -3 5. 3 6. -3

Ms. D'Angelo's oncologist has determined that she requires a different medication because of the adverse effects of paclitaxel. She will be started on bevacizumab and topotecan, on a platinum-free...

Ms. D'Angelo has recovered from her surgery and will begin chemotherapy to treat her cancer. She is scheduled to receive paclitaxel IV 175 mg/m over 3 hours every 3 weeks. What patient teaching will...

What do you understand by the total economic value (TEV) of a forest?

Mrs. D'Angelo returns to the infusion center for her next paclitaxel infusion. She reports that she has developed mouth pain. Candidiasis and mucositis are apparent. The drug of choice to treat oral...

The subprime mortgage crisis of 2008 and the now famous failure of investment bank Lehmann Brothers in the United States brought the worlds financial system to the brink of chaos in what became known...

A city is in need of increasing its rubbish disposal facilities. There is a choice of two rubbish disposal areas, as follows. Area A: A gravel pit with a capacity of 16 million cubic meters. Owing to...

An oil company is considering adding an additional grade of fuel at its service stations. To do this, an additional 3000-gallon tank must be buried at each station. Discussions with tank fabricators...

The vegetable buyer for a group of grocery stores has decided to sell packages of sprouted grain in the vegetable section of the stores. The product is perishable and any remaining unsold after one...

Journalize the following, assuming a 360-day year is used for interest computations: Apr. 30- Issued a $648,000,90-day, 8% note dated April 30 to Misner Co. on account. July 30 Paid Misner Co. the...

Check my work During the course of your examination of the financial statements of the Hales Corporation for the year ended December 31, 2018, you discover the following: a. An insurance policy...

Please answer B & C! C. Eastwood, A. North, and M. West are manufacturers' representatives in the architecture business. Their capital accounts in the ENW partnership for 201 were as follows:...