Assume that machine a can continually be replaced

Assignment Help Finance Basics
Reference no: EM131942198

"Machine A has an immediate cost of $14,000, and it will earn a net income of $6300 per year for a total of 4 years. Machine B has an immediate cost of $25,000, and it will earn a net income of $4500 per year for a total of 20 years. Assume that Machine A can continually be replaced at the end of its useful life with an identical replacement. Neither machine has any salvage value. Enter the annual equivalent worth of the machine that is the best alternative if the interest rate is 7.9%. If neither machine is acceptable, enter 0."

Reference no: EM131942198

Questions Cloud

What will be baldwin book value : If next year, assets decrease by $4,000,000 and liabilities increase by $2,000,000, what will be Baldwin's book value
Determine the new value of controller gain : INSTRUMENTATION AND CONTROL PRINCIPLES - Explain the meaning of the terms ‘choked flow' in relation the flow of gas through a valve. Explain also how choked
What is the market risk premium : If the expected return on the market is 14 percent and the risk-free rate is 4 percent,
Prepare the adjusting entry at december : December 31, 2013, securities fair value adjustments balance-Dr. 5,400. Prepare the adjusting entry at Dec. 31, 2014 to report the portfolio at fair value
Assume that machine a can continually be replaced : Assume that Machine A can continually be replaced at the end of its useful life with an identical replacement. Neither machine has any salvage value.
Summarizes the policy problem : Case analyses should demonstrate excellent understanding of the case study along with accurate application of appropriate frameworks.
Identify and discuss the reliability of types of evidence : Identify and discuss the reliability of the types of evidence an auditor would need to determine whether each condition cited above was met for a bill
What is the present worth of the entertainment complex : Assume the annual revenue and costs will remain the same under these conditions for an infinite amount of time. What is the present worth of the entertainment
Discounted payback approach : Use the discounted payback approach and assume an annual interest rate of 5.5%, compounded annually. Enter your answer as an integer."

Reviews

Write a Review

Finance Basics Questions & Answers

  Business activity-like a budget or timeline

You should have learned the 8 steps used to transform an HR department into an area that understands how its work aligns with organizational strategy.

  Development methods of growing various invertebrates

Aquaculturists (people who farm marine resources, typically in semi-enclosed areas off the coast) have development methods of growing various invertebrates

  Determine the value of the market change

Assume that in 2006 the expected dividends of the stocks in a broad market index equaled $210 million when the discount rate was 9.5 percent and the expected growth rate of the dividends equaled 6.5%.

  Offering personal and commercial trust services

Suppose the management of the First National Bank of New York decides that it needs to expand its fee-income generating services.

  The firm is considering switching to a 20-percent-debt

nonuns cos. has a 30 percent tax rate and has 304960000 in assets currently financed entirely with equity. equity is

  The bond''s coupon rate

If a bond's yield to maturity is larger than the bond's coupon rate, then the bond's price...

  Calculate the net realizable value of accounts receivable

Physicians' Hospital has the following balances on December 31, 2012, before any adjustment: Accounts Receivable = $50,000.

  Currency translation adjustment and contributions to an

in 1999 pfizer had 9000 million shares of common stock authorized 4260 million in issue and 3847 million outstanding

  What is the unpaid balance after the first payment

Your monthly payments are $62.28. If $22.50 of the first payment goes toward interest and $39.78 of the first payment goes toward the principal, what is the unpaid balance after the first payment?

  Compute future value of sinking fund

Gordon Company issued $1,000,000, ten year bonds and agreed to make annual sinking fund deposits of $80,000. The deposits are made at the end of each year into an account paying 5 percent yearly interest.

  How would you use quantitative measures

Pick a product category. Can you profile the brand personalities of the leading brands in the category using Aaker's brand personality inventory?

  Aftertax cash flow from the sale

If the relevant tax rate is 35 percent, what is the aftertax cash flow from the sale of this asset?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd