Which machine would you recommend given the following information and interest rate is10%?NewUsed MachineMachineP 44,000Operating 7, 000First Cost23, 000Annual9,000CostAnnual repair costOverhaul every21035021,900yearsOverhaulevery5 2,500yearsSalvage ValueLife, years4,0003,900158

The question is based on the concept of Cost Accounting.

Which machine would you recommend given the following information and interest rate is 10%? New Used Machine Machine First Cost Annual P 44,000 Operating 7,000 23, 000 9,000 Cost Annual repair cost 210 350 Overhaul every 2 0 1,900 years Overhaul every 5 2,500 years Salvage Value Life, years 4,000 3,900 15 8

Which machine would you recommend given the following information and interest rate is 10%? New Used Machine Machine First Cost Annual P 44,000 Operating 7,000 23, 000 9,000 Cost Annual repair cost 210 350 Overhaul every 2 0 1,900 years Overhaul every 5 2,500 years Salvage Value Life, years 4,000 3,900 15 8

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 11EB: How much would you invest today in order to receive $30,000 in each of the following (for further...

See similar textbooks

Similar questions

How much would you invest today in order to receive $30,000 in each of the following? (for further instructions on present value in Excel, see the Suggested Resources in the textbook: https://cnx.org/contents/kg0cimBs@14.13:bDQCmuJO@6/Suggested-Resources) a. 10 years at 9% b. 8 years at 12% c. 14 years at 15% d. 19 years at 18%
How much would you invest today in order to receive $30,000 in each of the following independent scenarios: 10 years at 9% 8 years at 12% 14 years at 15% 24 years at 10% Use the appropriate EXCEL spreadsheet in the Chapter11 TVOM Examples.xlsx downloadto complete the following table: Present Value (PV) Rate Time (Years) Future Value (FV) A 9% 10 $30,000.00 B 12% 8 $30,000.00 C 15% 14 $30,000.00 D 10% 24 $30,000.00 PLEASE NOTE: All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). Use the present value of $1 table in the Appendix B PV FV Tables downloadand verify that your answers above are correct: Future Value (FV) Rate Time (Years) FV Factor (from Table) Present Value (PV) A $30,000.00 9% 10 B $30,000.00 12% 8 C $30,000.00 15% 14 D $30,000.00 10% 24 PLEASE NOTE: All PV Factors will be rounded to three decimal places (i.e. 1.234). All dollar amounts will be with "$" and…
If a machine is bought at a price of P94,783.00 that would have an economic life of 14 years, at what year t will the book value be P34,660.00? Use DDBM.( Double Declining Balance Method
If the Interest rate is 10%, what is the present value? (Use excel function) A Initial Cost 5300 Uniform Annual Benefit 1800 Useful Life 4yrs Salvage Value 0
Which plan is the less expensive way to purchase plant maintenance equipment? The discount rate is 11%. Plan A: P 50 000 down, equal payments of P 27 115.12 for 20 years. Plan B: nothing down, equal payments of P30 393.91 for 20 years. Plan C: P 100 000 down, equal payments of P 23 975.74 for 20 years.
Which equipment is preferred if the firm’s interest rate is 15%? In PW terms how great is the difference? Alternative A B First cost $45,000 $35,000 Annual O&M 3,900 4,200 Salvage value 0 5,000 Overhaul (Year 6) 10,000 Not required Life, in years 10 5
Find the PV of an ordinary annuity that pays $1,000 at the end of each of the next 5 years if the interest rate is 15%. Then find the FV of that same annuity. Show Excel Wizard FormulaInputs: PMT = $1,000 N = 5 I/YR = 15% PV: Use function wizard (PV) PV = FV: Use function wizard (FV) FV =
Lipsion Ltd company is thinking about investing in one of two potential new productsfor sale. The projections are as follows: year revenue/ product s revenue/ product v0 (150,000) outlay (150000) outlay1 14000 150002 24000 253333 44000 520004 84000 63333 Calculate NPV of both products (to 1 d.p.) assuming a discount rate of 7%
Q) The maintenance costs associated with a machine are $2000 per year for the first ten years and $1000 per year thereafter. The machine has an infinite life. If interest is 10% per year, what is the present worth of the annual disbursements? Solve it early. Not explain I'm excel work. Typed or handwriting use onlys
what is the solution for this problem (please not on excel file) the answer should be 241,975.3826 I have purchased a machine worth P1,599,270.00. And it needs maintenance at the end of every 6 months starting 5 years after its purchased date and maintenance will be needed for the next 10 years of its useful life. The maintenance cost is equivalent to the 2% of the total machine cost. How much money should be prepare today to finance the requirement if the interest rate is 0.10 compounded quarterly?
A firm is trying to decide which of two machines to purchase as described in in the table below. Using the interest rate 9% or 0.09, use present worth analysis to determine which machine, if either, should be purchased. Show all your work. Machine: A - B First Cost: $800 - $600 Annual Net Benefit: $130 - $230 Salvage Value: $40 - $20 Usefil Life (years): 9 - 3
Use the following 8% interest factors. Present Value ofOrdinary Annuity Future Value ofOrdinary Annuity 7 periods 5.20637 8.92280 8 periods 5.74664 10.63663 9 periods 6.24689 12.48756 What amount should be recorded as the cost of a machine purchased December 31, 2020, which is to be financed by making 8 annual payments of $21500 each beginning December 31, 2021? The applicable interest rate is 8%. A.)$150500 B.)$228688 C.)$134308 D.)$123553