Reference no: EM132028479
Three machines have been selected for comparison by a manufacturing company. Their data is tabulated below. The company is using an investment MARR of 20%.
Using Equivalent Uniform Annual Worth method of analysis, determine the Incremental Rate of Return for the machine, which should be selected.
Show work, not spreadsheet.
Machine A, B , C
Cost $260,000 $130,000 $185,000
O&M/yr $18,000 $80,000 $45,000
Revenue/yr $150,000 $150,000 $150,000
Salvage $105,000 $35,000 $56,000
Life 4 4 4
What is the maturity risk premium
: Over the next three years, the real risk-free rate is expected to be 1.2 percent, and the inflation premium is expected to be 0.60 percent per year.
|
What would be the index value
: Three stocks have share prices of $12. $75. and $30 with total market values of $400 million. $350 million, and $150 million, respectively.
|
What are three of the practical limitations concerning
: What are three of the practical limitations concerning the writing evidencing a negotiable instrument and the substance on which it is placed?
|
Draw cash flow diagram for each machine
: Three machines are considered for a manufacturing operation. The cash flows shown black ( all in thousands )
|
Determine the incremental rate of return for the machine
: Using Equivalent Uniform Annual Worth method of analysis, determine the Incremental Rate of Return for the machine, which should be selected.
|
How much long-term debt does blackwell automotive have
: It also had accounts receivable of $141,258 and other current assets of $11,223. How much long-term debt does Blackwell Automotive have?
|
Develop an analysis of amazon company
: In this topic, apply the next two steps of the nine-step assessment process to develop a 500-word analysis of your chosen company: Amazon.
|
Prepare comparative condensed income statements
: Units purchased consisted of 40,000 units at $4.20 on May 10; Prepare comparative condensed income statements for 2015 under FIFO and LIFO
|
Find tims var for this portfolio
: Tim's Loan Company has 900 M in a large equity trading portfolio. The beta of the portfolio is 1.6.
|