Question

a used computer with remainig life of 5 years and 10.000 salvage value can be purchased...

a used computer with remainig life of 5 years and 10.000 salvage value can be purchased for 40.000 the annual maintanence cost is expected to 20 000 per year ın addition operating costs are expected to be 25 per hour altenatively a new computercan be rented for 150 per hour at an interest rate 10% per year what is the minimum number of hours per year the used computer must be utilized to justify its purchase(number of hı-ours per year that will equalize the cost of both computer)

Business   Economics   
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
a contractor needs a bulldozer. He can purchase it from the market or rent it from...
a contractor needs a bulldozer. He can purchase it from the market or rent it from a dealer . A used bulldozer with a remaining life of 10 years and QR 10,000 salvage value can be purchased for QR 40,000. The annual maintenance cost of the used bulldozer is assumed to be QR 20,000 per year. In addition, operating Cost of the bulldozer is expected to be QR 25 per hour. Alternatively, a bulldozer can be rented for Qr 150/hr...
A company has a need for a snow removal machine. The machine can be purchased for...
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. (b) Based on your answer of Q34, Determine the number of days per year that snow removal is...
One year? ago, your company purchased a machine used in manufacturing for $ 100 comma 000....
One year? ago, your company purchased a machine used in manufacturing for $ 100 comma 000. You have learned that a new machine is available that offers many advantages and you can purchase it for $ 150 comma 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 $ 40 comma 000 per...
A company has a need for a snow removal machine. The machine can be purchased for...
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
Case 1. (5 Marks) A Company purchased a machine with a cost of $950,000. The company...
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)...
A company is considering replacing the computer it currently uses. It was 3 years ago at...
A company is considering replacing the computer it currently uses. It was 3 years ago at a cost of $ 10,000. The operation and maintenance costs for that computer have been and will remain in the future at $ 1,000 per year. If a new computer is purchased, a bonus of $5,000 would be obtained in exchange for the current one. The cost of the new computer is $15,000 with an estimated useful life of 5 years and a salvage...
You have purchased a machine costing $25000. The machine will be used for two years, and...
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...
Units of Activity - Commercial Lawn Mower: Acquired January 1. Purchased for $14,000 salvage value is...
Units of Activity - Commercial Lawn Mower: Acquired January 1. Purchased for $14,000 salvage value is $2,000. Useful life is 5 years, Total units of activity = 6,250 hours. A. What is the depreciable cost amount? B. Show your computation to calculate the depreciation rate per hour. C. Will the depreciation rate change from year to year? Yes or No D. Complete the following Units of Activity Depreciation table for the first five years they use the equipment: Year Hours...
One year​ ago, your company purchased a machine used in manufacturing for $ 110 comma 000$110,000....
One year​ ago, your company purchased a machine used in manufacturing for $ 110 comma 000$110,000. You have learned that a new machine is available that offers many​ advantages; you can purchase it for $ 150 comma 000$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 $ 60 comma 000$60,000 per year...
eBook Economic Life The Scampini Supplies Company recently purchased a new delivery truck. The new truck...
eBook Economic Life The Scampini Supplies Company recently purchased a new delivery truck. The new truck cost $22,500, and it is expected to generate net after-tax operating cash flows, including depreciation, of $6,250 per year. The truck has a 5-year expected life. The expected salvage values after tax adjustments for the truck are given below. The company's cost of capital is 9.5 percent. Year Annual Operating Cash Flow Salvage Value 0 -$22,500 $22,500 1 6,250 17,500 2 6,250 14,000 3...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT