Question: Blaine Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $198,000 and would have

Blaine Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $198,000 and would have a ten-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $14,500 per year to operate and maintain, but would save $57,000 per year in labor and other costs. The old machine can be sold now for scrap for $20,000. What is the simple rate of return on the new machine? (Round off your answer to the nearest one-hundredth of a percent.)

	11.46%
	29.48%
	24.81%
	12.75%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Blaine Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $230,000 and would have a...

Blaine Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $340,000 and would have a...

Blaine Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $130,000 and would have a...

Blaine Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $260,000 and would have a...

Blaine Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $180,000 and would have a...

Blaine Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $300,000 and would have a...

Blaine Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $140,000 and would have a...

Blaine Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $270,000 and would have a...

Denny Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $250,000 and would have a...

Explain how a vision statement leads to the development of the mission statement and overall retail strategy.

1,000 is invested for 10 years. In any year the yield on the investment will be 4% with probability 0.4, 6% with probability 0.2 and 8% with probability 0.4 and is independent of the yield in any...

Copy and complete these divisions. a 2.4 +0.4 = 2.4 0.4 2.4 x 10 0.4 x 10 b 7.2 0.9= 7.2 7.2 x 10 0.9 0.9 10 -420.6=-42 -42 x 10 d -45+0.5=-45 -45 x 10 0.6 0.6 x 10 0.5 0.5 x 10

P-1) (100 Pts.) A chemical manufacturing company (CMC) has a contract for the procurement of the neccssaly chemicals from four suppliers. The chemicals purchased from Supplier A are priced at $20...

Does it have at least one-inch margins?

Does it highlight your accomplishments rather than your duties?

Look up the references on stress in the workplace and summarise the actions that human resources need to carry out in this area.