Question

A piece of production equipment is to be replaced by a new automated model immediately because...

A piece of production equipment is to be replaced by a new automated model immediately because it no longer meets quality requirements for the end product. The economic estimates for the new model are shown in the table below. The MARR is 15% per year. Capital investment $65,000 Annual expenses $9,000 Useful life (years) 20 Market value (at end of useful life) $13,000 With a five-year study period, calculate the imputed market value of the new model: Also, please find the AW within the study period: (Please keep your answer in thousands of dollars and keep one decimal place, also add “-“ sign if the result is negative).

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
21. Shamrock is considering the replacement of a piece of equipment with a newer model. The...
21. Shamrock is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment New Equipment Purchase price $252000 $420000 Accumulated depreciation 100800 - 0 - Annual operating costs 336000 268800 If the old equipment is replaced now, it can be sold for $67200. Both the old equipment’s remaining useful life and the new equipment’s useful life is 5 years. For this question only, assume that six months ago Chung’s equipment...
A new piece of production machinery has the following costs: Investment cost = $25,000. Annual operating...
A new piece of production machinery has the following costs: Investment cost = $25,000. Annual operating and maintenance cost = $2000 in year 1 and then increasing by $500 per year Annual cost for risk of breakdown = $5000 per year for 3 years, then increasing by $1500 per year Useful life = 7 years MARR = 15% Market Value: EOY MV 1 $18,000 2 $13,000 3 $ 9,000 4 $ 6,000 5 $ 4,000 6 $ 3,000 7 $...
Drain Your Brain, a local video arcade, is considering the addition of a new virtual reality...
Drain Your Brain, a local video arcade, is considering the addition of a new virtual reality system. Several different vendors have been contacted. The owner of the arcade, affectionately referred to by the patrons as Wizard, has narrowed his selection to one of three choices (mutually exclusive alternatives). The data below describes the three systems under evaluation. Annual costs are based on electricity consumed, replacement parts based on use, and preventive maintenance. Revenue estimates are provided by the vendors based...
Meadville Widgets is considering the purchase of a fully automated widget finishing machine to replace an...
Meadville Widgets is considering the purchase of a fully automated widget finishing machine to replace an older but still functioning but more labor intensive model. The machine being replaced was purchased 5 years ago for a price of $45,000.00 at which time it had an expected life of 10 years. This machine is being depreciated by the straight line method with an anticiapated salvage value of $0.00 The current market value of this machine is estimated to be $27,000.00. The...
1. The failure of the new supply chain system affected Nike adversely. What were the reasons...
1. The failure of the new supply chain system affected Nike adversely. What were the reasons for the failure and how did the breakdown harm Nike? 2. What are the important elements to be kept in mind while implementing a new system in an organization? What is the importance of a good working relationship between partners and the sharing of responsibility in implementing critical projects? What mistakes did Nike and i2 make? 3. comment on the lessons learned and the...
Pfizer was established in 1849 in Brooklyn, New York by cousins Charles Pfizer and Charles Erhart...
Pfizer was established in 1849 in Brooklyn, New York by cousins Charles Pfizer and Charles Erhart with a loan of $2,500 from Pfizer’s father.2 Today, 167 years later, Pfizer Inc. has international revenues of $49 billion, which makes it the second-largest pharmaceutical manufacturer in the world.3 Despite Pfizer’s success, the company has faced many challenges over the last few decades. The pharmaceutical industry is heavily influenced by legal, political, and technological forces, and all indications are that the industry will...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary rivals? How will the acquisition of Reebok by Adidas impact the structure of the athletic shoe industry? Is this likely to be favorable or unfavorable for New Balance? 2- What issues does New Balance management need to address? 3-What recommendations would you make to New Balance Management? What does New Balance need to do to continue to be successful? Should management continue to invest...
Assignment: What are the main arguments in the article? Please answer within 5 hours. It is...
Assignment: What are the main arguments in the article? Please answer within 5 hours. It is extremely urgent!!!!!!!!!!!!!!!!!!!!!!!! --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- BIOETHICS. Bioethics as a field is relatively new, emerging only in the late 1960s, though many of the questions it addresses are as old as medicine itself. When Hippocrates wrote his now famous dictum Primum non nocere (First, do no harm), he was grappling with one of the core issues still facing human medicine, namely, the role and duty of the...
What topics are covered in the following article? Please answer within 5 hours. It is extremely...
What topics are covered in the following article? Please answer within 5 hours. It is extremely urgent!!!!!!!!!!!!!!!!!!!!!!!! --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- BIOETHICS. Bioethics as a field is relatively new, emerging only in the late 1960s, though many of the questions it addresses are as old as medicine itself. When Hippocrates wrote his now famous dictum Primum non nocere (First, do no harm), he was grappling with one of the core issues still facing human medicine, namely, the role and duty of the physician....
The Business Case for Agility “The battle is not always to the strongest, nor the race...
The Business Case for Agility “The battle is not always to the strongest, nor the race to the swiftest, but that’s the way to bet ’em!”  —C. Morgan Cofer In This Chapter This chapter discusses the business case for Agility, presenting six benefits for teams and the enterprise. It also describes a financial model that shows why incremental development works. Takeaways Agility is not just about the team. There are product-management, project-management, and technical issues beyond the team’s control. Lean-Agile provides...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT