Case study of wcx company

Assignment Help Business Management
Reference no: EM1319343

WCX, Inc. is considering the replacement of its old stamping machine with a new one. The old machine was purchased 3 years ago for $62,000 and was expected to last for 8 years. The old machine has been depreciated using straight-line depreciation with an expected salvage value at the end of its life of $6,000. The new machine will cost $84,000 and would be considered a MACRS 3 year asset. The new machine would have a useful life of 5 years and then be sold for $8,000. The new stamping machine would result in increased revenues of $12,000 per year and would cost an additional $2,000 per year to operate. If you decide to purchase the new machine, the old machine could be sold today for $40,000. The company has a 6% cost of capital and is in the 40% tax bracket. Its Cost Recovery Policy specifies 4 years as its payback requirement. Using payback period, discounted payback period, NPV, IRR, and MIRR, determine if this is a good project or not.

1) Submit answer in excell
2) Explain the steps involved in the Capital Budgeting process.
3) Explain if this is a good project or not and why. Explain to the Board of Directors why.

Reference no: EM1319343

Questions Cloud

Implementing the code : Write down a program which utilizes a structure named MovieData in order to store the following information about the movieInvolve a constructor which allows all four of these member data values to be specified at the time a MovieData variable is g..
Random-effects anova : A random-effects ANOVA refers to the analysis where the levels included in the study represent a random sample of all levels that exist.
Powerful strategic commitment for cortes in mexico : Illustrate what about burning all but one of his ships made to a utilize, powerful strategic commitment for Cortes in Mexico.
Solving question using normal distribution having mean : Normal distribution has mean of 80 and standard deviation of 14. Find out the value above which 80 percent of values will occur.
Case study of wcx company : WCX, Inc. is considering the replacement of its old stamping machine with a new one. The old machine was purchased 3 years ago for $62,000 and was expected to last for 8 years.
Developing erd on basis of crows foot model : Develop an ERD based on Crow’s Foot model, utilizing the following requirements. An INVOICE is written by a SALESREP. Each sales representative may write several invoices, however each invoice is written by the single sales representative.
Find the amount of the house after three years : Find the amount of the house after 3 years
Homogeneity of variance test : The populations must all be normally distributed, what is meant by normally distributed?
Henny brown is worried about wealth transfer : Avocado farmer, Mrs. Henny Brown is worried about wealth transfer also unjust taxation.

Reviews

Write a Review

Business Management Questions & Answers

  Explain business process management

Business process management (BPM) and enterprise resource planning (ERP) systems

  Identify two sources of resistance to change in the perrier

Identify two sources of resistance to change in the Perrier case study also describe Elucidate how the organization dealt with each type of resistance.

  Process of conducting dismissal meeting

Describe a step-by-step process of conducting the dismissal meeting. Determine the compensation that the fictitious company may provide to the separated employee.

  Levels of eco-consciousness and social-responsibility

Do you deliberate its levels of eco-consciousness and social-responsibility set a realistic model of environmental performance for other manufacturing companies.

  Sell your stake in masonic bbs at this time

If you were Aleksandra Masonic, would you want to sell your stake in Masonic BBS at this time.

  Renovation of street and sidewalk

Renovation of a street and sidewalk was supposed to be finished in October yet wet weather prolonged the rebuilding until the middle of December.

  Key diversity concerns for country

Choose a country other than the United States, and document the key diversity concerns for that country. Which groups are dominant, and which are non-dominant?

  Product options available in us consumer market

Consider the number of product options available in the US consumer market. In virtually every product category, consumers have many options to fulfil their needs. For example, televisions.

  Traditional ecological knowledge

How do we honour traditional ecological knowledge (TEK) and at the same time bring traditional cultures into the 21st century? Conversely, how do traditional societies protect themselves from rampant consumerism?

  Experimental manipulation

Explain what experimental manipulation is. For instance, a business researcher is hired by a specialty retail firm, who is trying to decide what level of lighting and what temperature it should maintain in its stores to maximize sales.

  How might gbc defend itself against hal claim

Hal is electrocuted however survives and files a suit against GBC for damages, alleging that GBC was negligent. A.) Will Hal be successful in his claim B.) How might GBC defend itself.

  Explain and describe capitalism

Explain and describe capitalism and how it functions in a free market economy. Explain and describe management's role in setting ethical standards. Why does it matter what management's role is in setting ethical standards

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