Business, 06.05.2021 23:00 rishiganesh

A. A new operating system for an existing machine is expected to cost $520,000 and have a useful life of six years. The system yields an incremental after-tax income of $150,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. b. A machine costs $380,000, has a $20,000 salvage value, is expected to last eight years, and will generate an after-tax income of $60,000 per year after straight-line depreciation.

Required:
Assume the company requires a 10% rateo return on its vestments. Compute the net present value of each potential investment.

Answers: 2

Show answers

Other questions on the subject: Business

Business, 21.06.2019 17:50, belmontes

When borrowers want funding to pay for different projects, they go to the loanable funds market and acquire funds through either indirect finance or direct finance. below, you are given five different scenarios. is each an example of direct finance or indirect finance?

Answers: 2

continue

Business, 21.06.2019 23:50, amandajennings01

Juan has a retail business selling skateboard supplies he maintains large stockpiles of every item he sells in a warehouse on the outskirts of town he keeps finding that he has to reorder certain supplies all the time but others only once a year how can he solve this problem?

Answers: 1

continue

Business, 22.06.2019 15:20, byler47

Capital financial corporation will lend 90 percent against account balances that have averaged 30 days or less; 80 percent for account balances between 31 and 40 days; and 70 percent for account balances between 41 and 45 days. customers that take over 45 days to pay their bills are not considered acceptable accounts for a loan. the current prime rate is 16.50 percent, and capital charges 3.50 percent over prime to charming as its annual loan rate. a. determine the maximum loan for which charming paper company could qualify.

Answers: 1

continue

Business, 22.06.2019 20:00, bwelsh880

Ryngard corp's sales last year were $38,000, and its total assets were $16,000. what was its total assets turnover ratio (tato)? a. 2.04b. 2.14c. 2.26d. 2.38e. 2.49

Answers: 1

continue

You know the right answer?

A. A new operating system for an existing machine is expected to cost $520,000 and have a useful lif...