Determine if you would accept or reject the project

Assignment Help Business Management
Reference no: EM131550586

First American is considering buying a new machine to increase production. It will cost $2,700. Shipping will be $300. It has a three-year class life. At the end of one year they plan to sell the machine for $2,000. The new machine will allow FA to increase revenues by $1,700 each year but expenses will increase by $450 each year. If the new machine is purchased, inventory will decrease by $800 and accounts payable will increase by 250.

Straight-line depreciation will be used. FA's marginal tax rate is 34% and its cost of capital is 8%.

Determine if you would accept or reject the project.

Reference no: EM131550586

Questions Cloud

Do you believe that contribution margins : Do you believe that Contribution Margins can help you manage in your present work?
Maturity and a market interest rate : Compute the price of a 6.4 percent coupon bond with ten years left to maturity and a market interest rate of 8.0 percent.
Discuss the step of the six-step cycle : Window Frames. Christenson, Hutchinson, Mechem, and Theis worked with a manufacturing engineering department in an effort to identify cause(s) of variation.
Calculate the price of a zero coupon bond : Calculate the price of a zero coupon bond that matures in 16 years if the market interest rate is 5.4 percent.
Determine if you would accept or reject the project : Straight-line depreciation will be used. FA's marginal tax rate is 34% and its cost of capital is 8%. Determine if you would accept or reject the project.
Explain the cnc lathe program : Machined Steel Slugs. Harris, Murray, and Spear worked with a plant that manufactures steel slugs used to seal a hole in a certain type of casting.
What is the important response variable in this problem : Cutoff Machine. Wade, Keller, Sharp, and Takes studied factors affecting tool life for carbide cutting inserts. The group discovered that "feed rate" and "stop.
Critics see ethical dilemmas in google glass : Read "Focus on Ethics: Critics See Ethical Dilemmas in Google Glass?" on page 15 of your text and answer the following questions:
How do you calculate the liquidity ratio of a company : How do you calculate the liquidity ratio of a company? (I know it is the liquid assets divided by monthly expenses). I do not know how to find the liquid assets

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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