Question

A precision lathe costs $21,000 and will cost $31,000 a year to operate and maintain. If...

A precision lathe costs $21,000 and will cost $31,000 a year to operate and maintain. If the discount rate is 15% and the lathe will last for 4 years, what is the equivalent annual cost of the tool? (Do not round intermediate calculations. Round your answer to 2 decimal places. Enter your answer as a positive value.)

Equivalent annual cost
Business   Finance   
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
Ilana Industries Inc. needs a new lathe. It can buy a new high-speed lathe for $1.2...
Ilana Industries Inc. needs a new lathe. It can buy a new high-speed lathe for $1.2 million. The lathe will cost $47,000 per year to run, but it will save the firm $139,000 in labor costs and will be useful for 10 years. Suppose that for tax purposes, the lathe is entitled to 100% bonus depreciation. At the end of the 10 years, the lathe can be sold for $280,000. The discount rate is 8%, and the corporate tax rate...
Econo-Cool air conditioners cost $400 to purchase, result in electricity bills of $169 per year, and...
Econo-Cool air conditioners cost $400 to purchase, result in electricity bills of $169 per year, and last for 5 years. Luxury Air models cost $595, result in electricity bills of $138 per year, and last for 8 years. The discount rate is 25%. a. What are the equivalent annual costs of the Econo-Cool models? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. What are the equivalent annual costs of the Luxury Air models? (Do not...
Air conditioning for a college dormitory will cost $3.5 million to install and $100,000 per year...
Air conditioning for a college dormitory will cost $3.5 million to install and $100,000 per year to operate. The system should last 19 years. The real cost of capital is 5%, and the college pays no taxes. What is the equivalent annual cost? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Equivalent annual cost: $ ____ Can this be solved on a financial calculator?
A new furnace for your small factory will cost $47,000 and a year to install, will...
A new furnace for your small factory will cost $47,000 and a year to install, will require ongoing maintenance expenditures of $1,500 a year. But it is far more fuel-efficient than your old furnace and will reduce your consumption of heating oil by 4,400 gallons per year. Heating oil this year will cost $2 a gallon; the price per gallon is expected to increase by $0.50 a year for the next 3 years and then to stabilize for the foreseeable...
A new furnace for your small factory will cost $39,000 and a year to install, will...
A new furnace for your small factory will cost $39,000 and a year to install, will require ongoing maintenance expenditures of $1,100 a year. But it is far more fuel-efficient than your old furnace and will reduce your consumption of heating oil by 3,600 gallons per year. Heating oil this year will cost $2 a gallon; the price per gallon is expected to increase by $0.50 a year for the next 3 years and then to stabilize for the foreseeable...
A new furnace for your small factory will cost $30,000 and a year to install, will...
A new furnace for your small factory will cost $30,000 and a year to install, will require ongoing maintenance expenditures of $1,800 a year. But it is far more fuel-efficient than your old furnace and will reduce your consumption of heating oil by 2,700 gallons per year. Heating oil this year will cost $3 a gallon; the price per gallon is expected to increase by $0.50 a year for the next 3 years and then to stabilize for the foreseeable...
A new furnace for your small factory will cost $38,000 and a year to install, will...
A new furnace for your small factory will cost $38,000 and a year to install, will require ongoing maintenance expenditures of $1,200 a year. But it is far more fuel-efficient than your old furnace and will reduce your consumption of heating oil by 3,500 gallons per year. Heating oil this year will cost $2 a gallon; the price per gallon is expected to increase by $0.50 a year for the next 3 years and then to stabilize for the foreseeable...
A new furnace for your small factory will cost $36,000 and a year to install, will...
A new furnace for your small factory will cost $36,000 and a year to install, will require ongoing maintenance expenditures of $1,000 a year. But it is far more fuel-efficient than your old furnace and will reduce your consumption of heating oil by 3,300 gallons per year. Heating oil this year will cost $2 a gallon; the price per gallon is expected to increase by $0.50 a year for the next 3 years and then to stabilize for the foreseeable...
A new furnace for your small factory will cost $28,000 and a year to install, will...
A new furnace for your small factory will cost $28,000 and a year to install, will require ongoing maintenance expenditures of $1,600 a year. But it is far more fuel-efficient than your old furnace and will reduce your consumption of heating oil by 2,500 gallons per year. Heating oil this year will cost $3 a gallon; the price per gallon is expected to increase by $0.50 a year for the next 3 years and then to stabilize for the foreseeable...
A couple will retire in 40 years; they plan to spend about $31,000 a year in...
A couple will retire in 40 years; they plan to spend about $31,000 a year in retirement, which should last about 20 years. They believe that they can earn 7% interest on retirement savings. a. If they make annual payments into a savings plan, how much will they need to save each year? Assume the first payment comes in 1 year. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. How would the answer to part...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT