Floral Prints Inc. is considering the purchase of a new silkscreen machine. The cost information of...
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Floral Prints Inc. is considering the purchase of a new silkscreen machine. The cost information of the current machine and the new are presented below. Current New Machine Machine Original Purchase Cost 32,000 40,000 Accumulated Depreciation 12,000 Estimated Operating Costs 27,500 21,750 Useful Life in years 7 7 If sold now, the current machine would have a salvage value of $6,000. If operated for the remainder of its useful life, the current machine would have zero salvage value. The new machine is expected to have zero salvage value after 9 years. What is the net cost (including purchasing costs) of operating the new machine for seven years? Enter your answer in whole dollars with a comma separating the hundreds and thousands. Do not include a dollar sign. For instance, the number 123456 would be entered as 123,456 Calculate the net cost of operating the old machine for seven years. What is the increase or decrease in operating costs if the new machine is purchased? Enter your answer in whole dollars with a comma separating the hundreds and thousands. Do not include a dollar sign. For instance, the number 123456 would be entered as 123,456 If your answer is a decrease, place brackets around the number. For instance, a decrease of 123456 should be entered as (123,456) Floral Prints Inc. is considering the purchase of a new silkscreen machine. The cost information of the current machine and the new are presented below. Current New Machine Machine Original Purchase Cost 32,000 40,000 Accumulated Depreciation 12,000 Estimated Operating Costs 27,500 21,750 Useful Life in years 7 7 If sold now, the current machine would have a salvage value of $6,000. If operated for the remainder of its useful life, the current machine would have zero salvage value. The new machine is expected to have zero salvage value after 9 years. What is the net cost (including purchasing costs) of operating the new machine for seven years? Enter your answer in whole dollars with a comma separating the hundreds and thousands. Do not include a dollar sign. For instance, the number 123456 would be entered as 123,456 Calculate the net cost of operating the old machine for seven years. What is the increase or decrease in operating costs if the new machine is purchased? Enter your answer in whole dollars with a comma separating the hundreds and thousands. Do not include a dollar sign. For instance, the number 123456 would be entered as 123,456 If your answer is a decrease, place brackets around the number. For instance, a decrease of 123456 should be entered as (123,456)
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Purchase price of new machine 40000 Salvage value of current machine 6000 Net cost of ... View the full answer
Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Posted Date:
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