!Required informationThe Briggs and Stratton Commercial Division designs and manufacturers small engines for golf turf maintenanceequipment. A robotics-based testing system with support equipment will ensure that their new signature guaranteeprogram entitled "Always Insta-Start" does indeed work for every engine produced.First cost ofequipmentAOC per YearSalvage ValueEstimated LifePull System$-1,500,000$-700,000$100,0008 yearsPush System$-2,250,000$-600,000$50,0008 yearsDetermine the salvage value for the push system that will make the company indifferent to the two systems. Also, MARR = 10% peryear.The salvage value for the push system is determined to be $ 563958.81 in $1000 units.

First, we need to determine the PV of salvage value and deduct it from the first cost of the…

Answered: Determine the salvage value for the…

Principles of Accounting Volume 2

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Required Information The Briggs and Stratton Commercial Division designs and manufacturers small engines for golf turf maintenance equipment. A robotics-based testing system with support equipment will ensure that their new signature guarantee program entitled "Always Insta-Start" does indeed work for every engine produced. First cost of equipment AOC per Year Salvage Value Estimated Life Pull System $-1,250,000 $-700,000 $105,000 8 years Push System $-2,350,000 $-500,000 $90,000 8 years Compare the annual worth of the two systems at MARR = 13% per year. Select the better system. The (Click to select) is determined to be the better system.
The Briggs and Stratton Commercial Division designs and manufacturers small engines for golf turf maintenance equipment. A robotics-based testing system with support equipment will ensure that their new signature guarantee program entitled "Always Insta-Start" does indeed work for every engine produced. First cost of equipment AOC per Year Salvage Value Pull System $-1450000 $-780000 $125000 Push System $-2550000 $-580000 $130000 Estimated Life 8 years 8 years Determine the salvage value for the push system that will make the company indifferent to the two systems. Also, MARR = 9.00% per year. The salvage value for the push system is determined to be $ in $1000 units.
Required information The Briggs and Stratton Commercial Division designs and manufacturers small engines for golf turf maintenance equipment. A robotics-based testing system with support equipment will ensure that their new signature guarantee program entitled "Always Insta-Start" does indeed work for every engine produced. Pull System Push System First cost of $-1,100,000 $-2,200,000 equipment $-640,000 $90,000 $-440,000 $60,000 8 years AOC per Year Salvage Value Estimated Life 8 years Determine the salvage value for the push system that will make the company indifferent to the two systems. Also, MARR = 10% per year. The salvage value for the push system is determined to be $ in $1000 units.
The Fence Company is setting up a new production line to create top rails. The relevant data for two alternatives are shown below. Flow Line Manufacturing Cell Installed Cost Expected Life Salvage Value Variable Cost per Top Rail Click here to access the TVM Factor Table Calculator $15,000 5 years $0 $6.00 $10,000 5 years $0 $7.00
! Required information An engineer calculated the PW values for four alternatives to develop a remotely controlled vibrations control system for offshore platform applications. The results in the table use a MARR of 14% per year. Alternative Life, n, years PW over n years, $ PW over 6 years, $ PW over 12 years, $ || 3 16.08 26.94 39.21 J 14 31.12 15.78 60.45 K 12 -257.46 -653.29 -257.46 L 6 160 160 160 Determine which alternative(s) should be selected if the projects are independent. Alternative I is (Click to select) ✓ alternative J is (Click to select) (Click to select) ✓ alternative K is (Click to select) ✓ and alternative L is
A network company is planning to install a Fiber optic lines going to an island. What is the more economical on the two? Use EUAC when comparing. TROUGH LAND THROUGH WATER Initial cost per Km 235000 420500 Annual Maintenance per Km 12300 18000 Rate of Interest 10% 10% Length, Km 30 15 salvage Value per Km 23500 55500 Lifespan 20 20
Will save onse, Question 9 Two processes can be used for producing a polymer that reduces friction loss in engines. Which process should be selected the LCM, at an interest rate of 10% per year? Answer the below questions to select the best Option. Process A Process B First cost, $ 885,128 1,250,000 Annual operating cost, $ per 82,968 32,000 year Salvage value, $ 80,000 130,000 Update cost at year 2, $ 15,000 Life, years 4. PW for Process BD
! Required information Two options are available for setting up a wireless meter scanner and controller. A simple setup is good for 2 years and has an initial cost of $11,000, no salvage value, and an AOC of $27,000 per year. A more permanent system has a higher first cost of $73,000, but it has an estimated life of 6 years and a salvage value of $15,000. It costs only $17,000 per year to operate and maintain. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. If the two options are compared using an incremental rate of return, what is the incremental cash flow in year 6? The incremental cash flow in year 6 is $
Austins cell phone manufacturer wants to upgrade their product mix to encompass an exciting new feature on their cell phone. This would require a new high-tech machine. You are excited about his new project and are recommending the purchase to your board of directors. Here is the information you have compiled in order to complete this recommendation: According to the information, the project will last 10 years and require an initial investment of $800,000, depreciated with straight-line over the life of the project until the final value is zero. The firms tax rate is 30% and the required rate of return is 12%. You believe that the variable cost and sales volume may be as much as 10% higher or lower than the initial estimate. Your boss understands the risks but asks you to explain the alternatives in a brief memo to the board, Write a memo to the Board of Directors objectively weighing out the pros and cons of this project and make your recommendation(s).
QI\ a contractor want to invest his money in one of projects A or B if you know that the interest rate is 10%, choose the best altemative A or B using net present worth method ? A. B. Initial Investment 120,000 CU 135,000 CU Annual revenue Annual expenses Salvage vahie |Project life Cost of machines replaced every 3 years 15,000 CU\year 10,000 CU year 12,000 CU 12 years 17,000 CU year 11,000 CU year 20,000 CU 6 усars 3500 CU 3000 CU Q2 A company is planning to purchase a new equipment to increase the production and revemies. The cost of the equipment is 451105 CU and the equipment installation cost is 17% of its cost. Find the payback period for this equipment Year 1 Year 2 120,000 CU 130,000 CU 90,000 CU Year 3 Year 4 |100,000 CU Year 5 115,000 CU 90,000 CU Year 6 Q3 \ Machinery costs (60000 CU) and its useful life is (5 year). compute the schedule of depreciation and book value at the end of each year for the machinery by using the Sum of Year Digit method , if you know that the…
Need help Ill give like thanks A draw bench for precision forming and strengthening of carbon steel tubing has a cost of $1,070,000. It will have a salvage value of $66,000 after a useful life of 10 years.
eBook Show Me How Video Average Rate of Return The following data are accumulated by GreenApple Motors Inc. evaluating two competing capital investment proposals: Testing Equipment Diagnostic Software Amount of investment $40,000 $72,000 Useful life 4 years 5 years Estimated residual value $0 $0 Estimated total income over the useful life $5,200 $19,800 Determine the expected average rate of return for each proposal. If required, round to one decimal place. Testing Equipment fill in the blank 1 % Diagnostic Software fill in the blank 2 %

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Determine the salvage value for the push system that will make the company indifferent to the two systems. Also, MARR = 10% per year.