Question

9-34 & 9-35 Machine A was purchased three years ago for
$10,000 and had an estimated MV of $1,000 at the end of its 10-year
life. Annual operating costs are $1,000. The machine will perform
satisfactorily for the next seven years. A salesperson for another
company is offering Machine B for $50,000 with an MV of $5,000
after 10 years. Annual operating costs will be $600. Machine A
could be sold now for $7,000, and MARR is 12%per year.

Use this information to answer Problems 9-34 and 9-35

9-34.Using the outsider viewpoint, what is the EUAC of
continuing to use Machine A ? Choose the closest answer (9.6)

(a) $1,000 (b) $2,182 (c) $2,713 (d) $901 (e) $2,435

9-35.Using the outsider viewpoint, what is the EUAC of buying
Machine B? Choose the closest answer.(9.5)

(a) $8,565 (b) $11,361 (c) $9,750 (d) $9,165 (e) $900

Answer #1

If you are satisfied with a answer plz upvote thank you i really need that

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...

Jubail Corporation purchased a vibratory finishing machine for
$20,000 in year 0. The useful life of the machine is 10 years, at
the end of which, the machine is estimated to have a zero salvage
value. The machine generates net annual revenues of $6,000. The
annual operating and maintenance expenses are estimated to be
$1,000. If Jubail's MARR is 12%, how many years does it take before
this machine becomes profitable?
A. 4 years < n ≤ 5 years
B....

The Everly Equipment Company's flange-lipping machine was
purchased 5 years ago for $100,000. It had an expected life of 10
years when it was bought and is being depreciated by the
straight-line method by $10,000 per year. As the older
flange-lippers are robust and useful machines, this one can be sold
for $20,000 at the end of its useful life. A new high-efficiency,
digital-controlled flange-lipper can be purchased for $140,000,
including installation costs. During its 5-year life, it will
reduce...

The Everly Equipment Company's flange-lipping machine was
purchased 5 years ago for $80,000. It had an expected life of 10
years when it was bought and its remaining depreciation is $8,000
per year for each year of its remaining life. As older
flange-lippers are robust and useful machines, this one can be sold
for $20,000 at the end of its useful life.
A new high-efficiency digital-controlled flange-lipper can be
purchased for $160,000, including installation costs. During its
5-year life, it...

The Everly Equipment Company's flange-lipping machine was
purchased 5 years ago for $60,000. It had an expected life of 10
years when it was bought and its remaining depreciation is $6,000
per year for each year of its remaining life. As older
flange-lippers are robust and useful machines, this one can be sold
for $20,000 at the end of its useful life.
A new high-efficiency digital-controlled flange-lipper can be
purchased for $150,000, including installation costs. During its
5-year life, it...

(a) ABC Company purchased a $20,000desk-top laser cutting
machine 1year ago. The company was expected it can last
for 5years and a salvage value of $5,000. Since it was
accidentally dropped on the floor last year, $3,000was paid for
repairs, and its current operating costs are running at the rate of
$4,000 annually. It is expected to be increased $1,000more from the
next year onwards. Recently, the company has found that
it has a market value of $8,000in second-hand market. At
the same time,...

A new machine purchased by a firm has an initial cost of
$30,000, annual operating cost of $1,000 per year, and a salvage
value of $5,000 after a 9 years recovery period. The firm uses MARR
of 15% per year. Determine a) the depreciation charge at year 4,
and b) the book value at year 4 using the Straight Line (SL)
method.From the information in Q6, calculate a) the depreciation
charge at year 4, and b) the book value at...

Q6) A new machine purchased by a firm has an
initial cost of $30,000, annual operating cost of $1,000 per year,
and a salvage value of $5,000 after a 9 years recovery period. The
firm uses MARR of 15% per year. Determine a) the depreciation
charge at year 4, and b) the book value at year 4 using the
Straight Line (SL) method.
Q7) From the information in Q6, calculate a)
the depreciation charge at year 4, and b) the...

Problem 11-13
Replacement Analysis
The Everly Equipment Company's flange-lipping machine was
purchased 5 years ago for $80,000. It had an expected life of 10
years when it was bought and its remaining depreciation is $8,000
per year for each year of its remaining life. As older
flange-lippers are robust and useful machines, this one can be sold
for $20,000 at the end of its useful life.
A new high-efficiency digital-controlled flange-lipper can be
purchased for $130,000, including installation costs. During...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 13 minutes ago

asked 19 minutes ago

asked 19 minutes ago

asked 27 minutes ago

asked 53 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago