A machine costs $180,000 and will have an eight-year life, a $20,000 salvage value, and straight-line depreciation is used. Management estimates the machine will yield an after-tax net income of $12,500 each year. Compute the accounting rate of return for the investment.

Q: A new operations system requires an initial investment of $100,000 and will generate $70,000 in…

A:

Q: You are evaluating two different silicon wafer milling machines. The Techron I costs $258,000, has a…

A: Equivalent Annual cost (EAC) is the total cost incurred by the company annually for operating and…

Q: You are evaluating two different silicon wafer milling machines. The Techron I costs $225,000, has a…

A: EAC is a capital budgeting technique, so as to evaluate the cost effectiveness of projects/ assets…

Q: A machine has an initial cost of $30,000, labor annual cost of $37,000, maintenance annual cost of…

A:

Q: what is the present worth of this investment?

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: The Comil Corporation recently purchased a new machine for its factory operations at a cost of…

A: Calculate present value factor.

Q: Alter company's manager has proposed installing an equipment that will cost $36,000,have a 8-year…

A: The average rate of return calculates the rate of return compared to the initial investment costs.…

Q: A new machine that will lead tø savings in labour costs of $16,000 per year can be pur- chased for…

A: Before accepting any capital investment projects, a company should carry out an NPV analysis. Net…

Q: The initial investment cost of machine A is $ 9,000 and the useful life of the machine is 6 years…

A: Answer Calculation of Net Present cost equivalent per year

Q: A new production system for a factory is to be purchased and installed for $175,812. This system…

A: Equivalent annual worth  The annual cost of owning and sustaining an asset is determined by dividing…

Q: You are evaluating two different silicon wafer milling machines. The Techron I costs $216,000, has a…

A: Given: Techron 1  Initial cost = $216000 Life = 3 years Pretax operating cost = $55000 Depreciation…

Q: Carper Company is considering a capital investment of $390,000 in additional productive facilities.…

A: Capital Budgeting: It is the planning process used to determine whether an organization invests for…

Q: Clapton Corporation is considering an investment in new equipment costing $750,000. The equipment…

A: Accounting Rate-of-Return (ARR) is used to measure profitability of investment proposals ignoring…

Q: amble Company is considering a capital investment of $203,500 in additional productive facilities.…

A: Cash payback period is the number of years within in which initial outflow of an investment is…

Q: You are evaluating two different silicon wafer milling machines. The Techron I costs $255,000, has a…

A: Equated annual cost The equated annual cost method is the total cost incurred by the company…

Q: You are evaluating two different silicon wafer milling machines. The Techron I costs $213,000, has a…

A: Investment = -213,000 Depreciation amount = Acquiring Value - Salvage Value Depreciation amount =…

Q: You are evaluating two different silicon wafer milling machines. The Techron I costs $300,000, has a…

A: Calculation of EAC of Techron I and Techron II:The EAC is calculated using a excel spreadsheet. The…

Q: A large high-volume food manufacturing company is investing $146,680 to buy equipment for a new…

A: Net Present Value It is the method under which cash inflows that are received during the lifetime of…

Q: Nick’s Enterprises has purchased a new machine tool that will allow the company to improve the…

A: Annual cash flow:

Q: Rollerblade, a maker of skating gear, is evaluating two alternative presses. Press A costs $88,000,…

A: The press to be chosen is totally dependent on the positive and higher NPV comparatively.  Net…

Q: A machine costs $700,000 and is expected to yield an after-tax net income of $30,000 each year.…

A:

Q: You are evaluating two different silicon wafer milling machines. The Techron I costs $288,000, has a…

A:

Q: A machine has a first cost of $10,000 and an expected salvage value of $900 when it is sold.…

A: Payback period is the period which depicts the recovery period within which the cash outflows of the…

Q: A new production system for a factory is to be purchased and installed for $115,042. This system…

A: Initial investment =  115,042 Annual dollar savings = Savings in electricity consumption * cost per…

Q: a. A new operating system for an existing machine is expected to cost $582,000 and have a useful…

A: given that, annual cash flows for machine A = $262000 the residual value of machine A = $30000…

Q: A piece of research equipment is expected to require an investment of $18,000, with $6,000 committed…

A: Capital recovery means recovery of initial investment amount put into any project. It is in a way…

Q: A machine costs $300,000 and is expected to yield an after-tax net income of $9,000 each year.…

A: The accounting rate of return can be evaluated by dividing net income by average investment. We can…

Q: A firm is considering two different methods of solving a production problem. Both methods are…

A: The calculation is:

Q: You are evaluating two different silicon wafer milling machines. The Techron I costs $285,000, has a…

A: Given: Techron 1 cost is $285,000 Techron 1 pre tax operating cost is $46,000 Techron 11 cost is…

Q: You are provided with the following details of a proposed investment in a new machine: The factory…

A: Here, Time Period of Machine is 20 years Other Details are as follows:

Q: A machine costs $500,000 and is expected to yield an after-tax net income of $19,000 each year.…

A: Answer:   6.33%

Q: raight

A: Average cost of investment is generally used in Accountingrate of return concept. In accounting rate…

Q: If your tax rate is 35 percent and your discount rate is 14 percent, compute the EAC for both…

A: The yearly cost of owning and running an asset over its estimated life is called equivalent annual…

Q: What is the average amount invested in a machine during its predicted five-year life if it costs…

A:

Q: A machine that costs $12,000 is expected to operate for 10 years. The estimated salvage value at the…

A: IRR is the internal rate of return at which the discounted cash inflow is equivalent to outflow. The…

Q: You are evaluating two different silicon wafer milling machines. The Techron I costs $265,000, has a…

A: The data and working calculations are given in the following table  Techron 1         year 0…

Q: A machine costs $600,000 and is expected to yield an after-tax net income of $23,000 each year.…

A: calculation of above requirement are as follows

Q: You are evaluating two different silicon wafer milling machines. The Techron I costs $249,000, has a…

A: The question is based on the concept of Financial Management.

Q: The first cost of a machine is $375,000 with a 7 years life. Annual interest rate is 20% and the…

A: Depreciation means a fall in the value of a tangible asset due to wear and tear over a period of…

Q: A machine costs $600,000 and is expected to yield an after-tax net income of $23,000 each year.…

A:

Q: A machine costs $400,000 with salvage value of 20,000. Life of it is six years. In the first year,…

A: Solution:- The fall in value of asset due to its wear and tear cost is called depreciation.…

Q: cooling water pumping station at a manufacturing plant in Iligan City costs P30,000,000 to…

A: Straight line method charge depreciation equally over the useful life of the assets. Declining…

Q: Briggs Excavation Company is planning an investment of $932,100 for a bulldozer. The bulldozer is…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: A land development company is considering the purchase of earth-moving equipment. This equipment…

A: It is the annual cost of purchasing, operating and maintaining the asset throughout the life of the…

Q: How long will it take to recover an investment of $245,000 in enhanced CNC controls that include…

A: Break-Even is point where entity is neither earning profit nor incurring losses. It is point where…

Q: The initial cost of an evaporative crystallizer including its installation is Php 930,000. The…

A: solution given Initial cost 930000 Cost of dismantling 22000 Salvage value 66000…

Q: An industrial organization studying the relative desirability of two diesel engines proposed for…

A: Relative Desirability : Based on the quantity of investment in one asset in an organization, how…

Q: compute the EAC for both machines

A: EAC stands for Equivalent Annual Cost. It is the annual cost which is incurred for a project. To…

Q: A machine costs $700,000 and is expected to yield an after-tax net income of $52,000 each year.…

A: A machine costs $700,000 and is expected to yield an after-tax net income of $52,000 each year.…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.