1 A precision lathe costs $11.600 and will cost $28,000 a year to operate and maintain, If the discount rate is 10% and the lathe will last for 4 years. what is the equivalent annual cost of the tool (Enter your answer as positive value. Round your answer to the nearest cent.) The equivalent, antnial cost 00:02

1 A precision lathe costs $11.600 and will cost $28,000 a year to operate and maintain, If the discount rate is 10% and the lathe will last for 4 years. what is the equivalent annual cost of the tool (Enter your answer as positive value. Round your answer to the nearest cent.) The equivalent, antnial cost 00:02

Name: Quiz VIISaved1A precision lathe costs $11,600 and will cost $28,000 a
Uploaded: 2022-11-18T16:48:51.000Z
Channel: Bartleby
Description: Quiz VIISaved1A precision lathe costs $11,600 and will cost $28,000 a year to operate and maintain, If the discount rate is 10% and the lathe will lastfor 4 years. What is the equivalent annual cost of the tool (Enter your answer os positive value.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 17EA: Gardner Denver Company is considering the purchase of a new piece of factory equipment that will...

See similar textbooks

Similar questions

Compare the machines below using present worth analysis at i10% per year and find which one should be selected Machine Y First Cost Operating Cost Savage Lfe cycle Machine X 20.000 3.000 3.000 3years Firat Cost 30.000 .000 Annuel Operating Cost Salvage Life cycle 3.000 6 yoars
A precision lathe costs $11,300 and will cost $26,500 a year to operate and maintain. If the discount rate is 12% and the lathe will last for 4 years, what is the equivalent annual cost of the tool? (Enter your answer as positive value. Round your answer to the nearest cent.) The equivalent annual cost $
A precision lathe costs $10,400 and will cost $22,000 a year to operate and maintain. If the discount rate is 13% and the lathe will last for 4 years, what is the equivalent annual cost of the tool? (Enter your answer as positive value. Round your answer to 2 decimal places.) The equivalent annual cost $
If I purchased a solar panel set with a total cost of P82,260.00 and the expected life is 15 years, using DDBM, what is the possible trade off price I can use as reference at the end of its economic life in pesos? Answer round off to two decimal places what is the solution not in excel file
Choice A: Buy the machine Machine Cost: P700,000 Economic Life: 10 years Trade-in Value: P100,000 Operating Cost per day: P500 Choice B: Rent the machine Rent Payment: P1,500 per day Assuming that the rate of return is 18% and Choice A is to be chosen, how long in days should the machine be in use. Please explain step by step
You have a chance to make an investment that has $10.000.000 landing, 1.500.000 machine, outsourcing 500.000 and finance cost 1.000.000. Machines have 1.000.000. scrap value at end of 4th year. You will pay interest payment at the end of 4rd year that is $500.000. If you make this investment now, you will receive $4.500.000 one year from today, $3.000.000, $5.000.000 and S 4.000.000 respectively. The appropriate discount rate for this investment is 14 percent. Tax rate is % 30. Should you make the investment? Why?? Please write the answer in a handwritten format
Soru 1 Henüz cevaplanmadi 1,00 0zerinden işaretlenmiş P Soruyu işaretle New digital scanning graphics equipment is expected to cost 550023, to be used for 6 years, and to have an annual operating cost (AOC) of $10071. Determine the AW values for one and three life cycles at i 10% per year.
You have a opportunity to make a investment that has $10.000,000 landing, 1.500.000 machine, outsourcing 500.000 and finance cost 1.000.000. Machines have 1.000.000 scrap value at end of 4th year. You will pay interest payment at the end of project, that is $400.000. If you make this investment now, you will receive $4.500,000 one year from today, $3.000,000, $5.000,000 and $ 4.000,000 respectively. The appropriate discount rate for this investment is 14 percent. Tax rate is % 30. Should you make the investment?
Your boss has told you to evaluate the cost of two machines.After some questioning, you are assured that they have thecosts shown at the right. Assume:a) The life of each machine is 3 years.b) The company thinks it knows how to make 14% oninvestments no riskier than this one.Determine via the present value method which machine topurchase. MACHINE A MACHINE BOriginal cost $13,000 $20,000Labor cost per year 2,000 3,000Floor space per year 500 600Energy (electricity) per year 1,000 900Maintenance per year 2,500 500Total annual cost $ 6,000 $ 5,000Salvage value $ 2,000 $ 7,000
An untreated electric wooden pole that will last 15 years under a certain soilcondition costs P1500. If a treated pole will last for 25 years, what is themaximum justifiable amount that can be paid for the treated pol, if themaximum return on investment is 15%? Consider annual taxes and insuranceamount to 2% of first cost.
Tuo (enstraction pavement Hhe first one costs 55.111048x18 pavement the first one costs 55. c46x18 oud luhich uill be used for 20 years The second cne Costs 6b.83906x10s ahich will be used for 30 years. The in terest rate is 89o luhich pavement to use
COMPARE THE EQUIVALENT YEARLY COST OF AN INCANDESCENT BULB WITH THE L.E.D. BULB THAT WILL EMIT 1000-1400 LUMENS BASED ON THE FF PARAMETERS BULB COST LIFE POWER CONSUMPTION USAGE /DAY INCANDESCENT P60 1 YEAR 75 WATTS 8 HRS L.E.D P200 4 YEARS 12.5 WATTS AVE. 8 HRS USE 365 DAYS PER YEAR AND THE POWER COST IS PHP 13/KW-HRS