Considering replacing machine

Assignment Help Business Economics

Reference no: EM13895985

A company is considering replacing a machine that was bought six years ago for $50,000. The machine, however, can be repaired and its life extended by five more years. If the current machine is replaced, the new machine will cost $44,000 and will reduce the operating expenses by $6,000 pe year. The seller of the new machine has offered a trade-in allowance of $15,000 for the old machine. If MARR is 12% per year before taxes, how much can the company spend to repair the existing machine?

$22,371

$7,371

-$1,000

$50,628

Reference no: EM13895985

Questions Cloud

Describe any differences between career development : Can you describe any differences between career development and employee development? What types of employee development experiences have you had in past/current workplace positions? Have these experiences affected your overall career development?

Financial crisis and the subsequent recession : During the 2008 financial crisis and the subsequent recession, how did major U.S. banks respond to the actions of the Federal Reserve? How did those monetary policy actions affect U.S. businesses and households?

Compare economic performance in oligopolistic market : Compare economic performance in an oligopolistic market with that in a purely competitive one. Is oligoploy the best market structure for rapid technological development? Why or why not?

What is the role of hrm specifically : How is HRM directly involved with the new employee orientation? What is the role of HRM specifically?

Considering replacing machine : A company is considering replacing a machine that was bought six years ago for $50,000. The machine, however, can be repaired and its life extended by five more years. The seller of the new machine has offered a trade-in allowance of $15,000 for the ..

Production of electricity result in market failure : How do externalities in the production of electricity result in market failure?

Hub with the fortress hub of a global network : A smaller network carrier (hub and spoke airline) is considering expanding its product by adding a new route connecting its hub with the “fortress hub” of a global network carrier (see Doganis sections 9.6 & 9.7). Choose any one of the topics from Ba..

Need to use four primary sources : Need ideas, for term paper. On Public Education. Needs to be done in 5 days. Need to use four primary sources that relates, to Voices of Freedom, A Documnent In History. Author Eric Foner, Fourth Edition Volume 2.

Production of electricity by utility generates pollution : Suppose the production of electricity by a utility generates pollution that harms others. Suppose also that Coase bargaining can occur between the utility and the victims of pollution but that the utility has not been legally liable for the damages f..

User Account

All Pages