Question

You have purchased a machine costing $26,000. The machine will be used for two years, and at the end of this time, its salvage value is expected to be $12,000. The machine will be used 5,000 hours during the first year and 7,000 hours during the second year. The expected annual net savings will be $45,000 during the first year and $50,000 during the second year. If your interest rate is 12%, what would be the equivalent net savings per machine hour? The equivalent net savings are $ per machine hour.

Answer #1

You have purchased a machine costing $25000. The machine will be
used for two years, and at the end of this time, its salvage value
is expected to be $18000. The machine will be used 6000 hours
during the first year and 8000 hours during the second year. The
expected annual net savings will be $35000 during the first year
and $38000 during the second year. If your interest rate is 8%,
what would be the equivalent net savings per...

Machine X has an initial cost of $12,000 and annual maintenance
of $700 per year. It has a useful life of four years and no salvage
value at the end of that time. Machine Y costs $22,000 initially
and has no maintenance costs during the first year. Maintenance is
$200 at the end of the second year and increases by $200 per year
thereafter. Machine Y has a useful life of eight years and an
anticipated salvage value of $5,000...

One year ago, your company purchased a machine used in
manufacturing for $90,000. You have learned that a new machine is
available that offers many advantages; you can purchase it
$150,000 today. It will be depreciated on a straight-line basis
over ten years, after which it has no salvage value. You expect
that the new machine will contribute EBITDA (earnings before
interest, taxes, depreciation, and amortization) of $45,000 per
year for the next ten years. The current machine is expected...

A company has a need for a snow removal machine. The machine can
be purchased for the cost of $25,000. The machine is expected to
have a life of 6 years with no salvage value. The annual operating
cost amounts to $5,000. Alternatively, the machine can be rented at
the cost of $400 per day payable at the end of the year. (a)
Determine Net Present Worth for buying option. Use an interest rate
of 10% per year

Replacement Analysis BTCF
Machine A was purchased three years ago for $12,000 and had an
estimated market value
of $1,000 at the end of its 10-year life. Annual operating costs
are $1,500. The machine will perform satisfactorily for the next
seven years. A salesman for another company is offering machine B
for $60,000 with a market value of $5,000 after 10 years. Annual
operating costs will be $800. Machine A could be sold now for
$8,000, and the MARR is...

Replacement Analysis BTCF Machine A was purchased three years
ago for $12,000 and had an estimated market value of $1,000 at the
end of its 10-year life. Annual operating costs are $1,500. The
machine will perform satisfactorily for the next seven years. A
salesman for another company is offering machine B for $60,000 with
a market value of $5,000 after 10 years. Annual operating costs
will be $800. Machine A could be sold now for $8,000, and the MARR
is...

Case 1. A Company
purchased a machine with a cost of $950,000. The company estimates
the machine will have a useful life of 6 years and $50,000 salvage
value.
The machine is expected to produce 600,000 units. The machine is
estimated produce 150,000 units in year 1.
The machine is expected to run for 450,000 hours. The company
projects in Year 1 the machine to run for 150,000 hours.
Determine the depreciation expense for year 1 for
a) b) c)...

One year? ago, your company purchased a machine used in
manufacturing for $115,000. You have learned that a new machine is
available that offers many advantages and you can purchase it for
$165,000 today. It will be depreciated on a? straight-line basis
over 10 years and has no salvage value. You expect that the new
machine will produce a gross margin? (revenues minus operating
expenses other than? depreciation) of $45,000 per year for the next
10 years. The current machine...

Krauth Company purchased a machine for $162,600. The machine has
a life
of twelve years with no salvage value. It is expected that the
machine will
generate annual net cash inflows of $30,000 per year over its
useful life.
Assume Krauth Company employs a cost of capital of 10% on all
capital
investment projects.
The internal rate of return (IRR) on the
machine is closest to:
Group of answer choices
9%
10%
12%
14%
15%
16%

One year? ago, your company purchased a machine used in
manufacturing for $100,000. You have learned that a new machine is
available that offers many advantages and you can purchase it for
$150,000 today. It will be depreciated on a? straight-line basis
over 10 years and has no salvage value. You expect that the new
machine will produce a gross margin? (revenues minus operating
expenses other than? depreciation) of $45,000 per year for the next
10 years. The current machine...

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