A manufacturing company is considering to buy one from two alternative machines. Machine A will have...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A manufacturing company is considering to buy one from two alternative machines. Machine A will have a first cost of $97.000, an annual MBO cost of $27,000, and a $60,0o0 salvage value at vear 5. Machine B will have a first cost of $80,000, an annual malntenance and operation (M&0) cost of $30,000, and a $50,000 salvage value at year 7. Which machine should be selected on the basis of a present worth comparison at an interest rate of 15% per year? : What is the present worth of Machine A at LCM years of operation? A Machine B • What is the future worth of Machine B at LCM years of operation? 8S-367,025 : Which machine should be selected ? C. Machine A D.S-384,556 E S-365,533 F. $-379,747 A manufacturing company is considering to buy one from two alternative machines. Machine A will have a first cost of $97.000, an annual MBO cost of $27,000, and a $60,0o0 salvage value at vear 5. Machine B will have a first cost of $80,000, an annual malntenance and operation (M&0) cost of $30,000, and a $50,000 salvage value at year 7. Which machine should be selected on the basis of a present worth comparison at an interest rate of 15% per year? : What is the present worth of Machine A at LCM years of operation? A Machine B • What is the future worth of Machine B at LCM years of operation? 8S-367,025 : Which machine should be selected ? C. Machine A D.S-384,556 E S-365,533 F. $-379,747
Expert Answer:
Answer rating: 100% (QA)
Date Machine A Present value 97000 27000plA I55 1 A Machine A 60 0... View the full answer
Related Book For
Visualizing Environmental Science
ISBN: 978-1119147527
4th edition
Authors: Linda R. Berg, David M. Hassenzahl, Mary Catherine Hager
Posted Date:
Students also viewed these accounting questions
-
The Precision Manufacturing Company is considering the purchase of an NC, machine and has narrowed the possible choices to two models. The company produces several products, and batches of work...
-
The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 34 percent. Assume all sales revenue is received...
-
The Dante Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated below. The corporate tax rate is 34 percent. Assume all sales revenue is...
-
Hanover Inc. expects to have a cash balance of 546.000 on January 1, 2017. Relevant monthly budget Prepare cash budget, data for the first two months of 2017 are as follows: (10 4) Al' 1. Collections...
-
State the formula for fixed asset turnover ratio and describe what this ratio tells an analyst.
-
Use the Kolmogorov-Smirnov test to test the hypothesis that the 25 values in Table 10.34 form a random sample from the uniform distribution on the interval [0, 1]. Table 10.34 Data for Exercise 4...
-
Late Night Eating It is well-known that lack of sleep impairs concentration and alertness, and this might be due partly to late night food consumption. A 2015 study took 44 people aged 21 to 50 and...
-
The Terminus Hotel, a 200-room facility located in a medieval city in Southern Spain. As consequence of poor management and old-fashioned interior design. the hotel experienced slumping demand since...
-
The Western Farm Supplies Inc. chief executive officer ( CEO ) has asked you to compare the company s profit performance and financial position with the averages for the industry. The CEO has given...
-
The following summarized data (amounts in millions) are taken from the September 26, 2020, and September 28, 2019, comparative financial statements of Apple Incorporated, a company that designs,...
-
The engine in the figure operates at 50 rpm. ATM conditions are 101 kPa and 17 C. a) Considering that the engine has 4 cylinders and 4 stroke, find the amount of air it absorbs per unit time. b) If...
-
Write short notes on the application of coal, oil, natural gas, and nuclear energy.
-
How many liters will \(10 \mathrm{~g}\) of dry ice (carbon dioxide) occupy at \(1 \mathrm{~atm}\) and \(23^{\circ} \mathrm{C}\) ?
-
Differentiate pressurized water reactor and boiling water reactor.
-
A balloon contains a gas with a volume of \(1.1 \mathrm{~L}\) at \(22^{\circ} \mathrm{C}\) and \(756 \mathrm{~mm}\). What would be the volume of the gas at a higher altitude where the pressure of the...
-
Explain briefly the principle of conversion of solar energy directly on to electrical energy in a solar cell.
-
______________ are processes that may impede or block flows or help to expedite or channel them. Group of answer choices none of the above Globalization Heirarchies Structures
-
Consider the circuit of Fig. 7.97. Find v0 (t) if i(0) = 2 A and v(t) = 0. 1 3 ett)
-
Compare the benefits and drawbacks of China's Three Gorges Dam. Do you think the dam will do more harm or more good for China? Explain your answer.
-
What are the goals of restoration ecology? Are there any disadvantages associated with restoring disturbed areas?
-
How do ocean currents affect climate on land? In particular, describe the role of the ocean conveyor belt.
-
A company expects to receive which of the following benefits when it uses its budgeting process? a. The planning required to develop the budget helps managers foresee and avoid potential problems...
-
A direct materials budget would be used in which of the following types of companies? a. Service b. Merchandising c. Manufacturing d. All of the above
-
A disadvantage to merchants from accepting debit and credit cards would be a. lost sales. b. transaction fees. c. bounced checks. d. longer time to receive cash.
Study smarter with the SolutionInn App