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: 50% (6 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
4269+ 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...
-
1- Given the ethical climate at Brown and Williamson's, why do you think the other employees at the Company did not join or support Dr. Wigand once the whistle was blown? Surely, Dr. Wigand was not...
-
For each of the following, calculate the standard error of the difference \(\left(s \mathrm{X}^{-} 1-\mathrm{X}^{-} ight.\) 2 ) and the \(t\)-test for independent means. a. N = 6, N = 6, X 1 18.50, $...
-
The December 31, 2020, unadjusted trial balance for Musical Sensations after its second year of operations follows: Required 1. Enter the unadjusted trial balance onto a work sheet. 2. Using the...
-
If I threw a 1 . 0 kg text book up into the air with a speed of 5 . 0 km / s , what maximum height would it reach? The mass of the Earth is 5 . 9 8 x 1 0 ^ 2 4 kg and its radius is 6 . 3 8 1 0 ^ 6...
-
In the following, a "max" tree consists only of max nodes, whereas an "expectimax" tree consists of a max node at the root with alternating layers of chance and max nodes. At chance nodes, all...
-
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...
-
Building on your answer to question 6, why did IBM suffer serious reverses in the early 1990s? Why did IBM bounce back in the latter half of the 1990s? Do you think that IBM will retain its dominant...
-
Assume all risks involved in this question are idiosyncratic (firm-specific) so investors' discount rate is always the risk-free rate, 10%. A firm currently has two assets: $60 million cash and a...
-
1. Calculate reactions at the external supports. 2. Draw the free body diagram. 3. Build the diagrams if shear force and bending moment. (use the section method) 4. Find the diameter of section of...
-
An employee who works for you confronts you with a formal grievance concerning another employee being promoted over him. What initial actions will you take in order to address this grievance?Explain
-
You have a long term donor who is interested in investing 25,000 dollars and has some stipulations on how the money is allocated and request that funding specifically goes to Christian based schools...
-
We can model a trebuchet as a simple system of three masses on two linkages as shown in the sche- matic below. We will assume that the Trebuchet is already built and has a throwing arm that is 15 Im...
-
Use the quotient rule for logarithms to find all x values such that log 6 (x + 2) log 6 (x 3) = 1. Show the steps for solving.
-
Convert the numeral to a HinduArabic numeral. A94 12
-
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....
-
9. You are trying to buy a new $275,000 Ferrari. You have $50,000 today that can be invested at your bank. The bank pays 4.8% annual interest on accounts. How long will it be before you have enough...
-
What do you think about marketing in general, and marketing analytics specifically? You can give examples of how your decision-making or work behaviors have changed as a result of your learning...
-
Outline the organization's current approach to marketing with examples (i.e. is it traditional or digital marketing or a combination of both?) and What their future marketing approach may look like...
Study smarter with the SolutionInn App