A mechanical engineer designs and sells equipment that automates manual labor processes. He is offering a machine/robot combination that will significantly reduce labor costs associated with manufacturing garage-door opener transmitters. The equipment has a first cost of $162,000, an estimated annual operating cost of $47,000, a maximum useful life of 5 years, and a $19,500 salvage value anytime it is replaced. The existing equipment was purchased 12 years ago for $65,000 and has an annual operating cost of $78,000. The currently owned equipment can be used for 2 more years after which it will be auctioned off for an expected amount of $7,250, less 20% paid to the company handling the auction. The same scenario will occur if the currently owned equipment is replaced at present. Determine the defender and challenger estimates of P, n, S, and AOC in conducting a replacement analysis today at an interest rate of 20% per year.
Answers: 3
Other questions on the subject: Business
Business, 22.06.2019 01:30, hollymay808p0t9to
At the end of the week, carla receives her paycheck and goes directly to the bank after work to make a deposit into her savings account. the bank keeps the required reserve and then loans out the remaining balance to a qualified borrower named malik as a portion of his small business loan. malik uses the loan to buy a tractor for his construction business and makes small monthly payments to the bank to payback the principal balance plus interest on the loan. the bank profits from a portion of the interest payment received and also passes some of the interest back to carla in the form of an interest payment to her savings account. in this example, the bank is acting
Answers: 1
Business, 22.06.2019 03:00, nyahdrake
You are the manager of the packaging department in a cookie factory. (obviously, the packaging employees cannot eat the cookies that are transferred in during the period.) after your employees insert cookies into colorful packages (step 1) for display on store shelves, the packages of cookies are then boxed using cardboard cartons (step 2) for shipment to stores. each unit of product is represented by a carton of packaged cookies. the packaging department began the period with 1,000 units of cookies. during the period, 5,000 units of cookies were transferred in from the baking department and 5,500 units of cookies were transferred out to the finished goods department. the number of units of cookies in the ending inventory of the packaging department equals:
Answers: 1
Business, 22.06.2019 04:40, mswillm
Dahlia enterprises needs someone to supply it with 127,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. it will cost you $940,000 to install the equipment necessary to start production; you’ll depreciate this cost straight-line to zero over the project’s life. you estimate that in five years, this equipment can be salvaged for $77,000. your fixed production costs will be $332,000 per year, and your variable production costs should be $11.00 per carton. you also need an initial investment in net working capital of $82,000. if your tax rate is 30 percent and your required return is 11 percent on your investment, what bid price should you submit? (do not round intermediate calculations and round your final answer to 2 decimal places. (e. g., 32.16))
Answers: 3
You know the right answer?
A mechanical engineer designs and sells equipment that automates manual labor processes. He is offer...
Questions in other subjects:
Mathematics, 29.10.2019 09:31
Mathematics, 29.10.2019 09:31
History, 29.10.2019 09:31
Mathematics, 29.10.2019 09:31
Mathematics, 29.10.2019 09:31
