Determine the marginal cost to extend service

Assignment Help Business Economics

Reference no: EM131809909

A drill press was purchased 2 years ago for $40,000. The press can be sold for $15,000 today or for $12,000, $10,000, $8000, $6000, $4000, or $2000 at the ends of each of the next 6 years. The annual operating and maintenance cost for the next 6 years will be $2700, $2900, $3300, $3700, $4200, and $4700. Determine the marginal cost to extend service for each of the next 6 years if the MARR is 12%. If a new drill press has an EAC of $7000, when should the drill press be replaced?

Reference no: EM131809909

Questions Cloud

Determine the costs per equivalent unit of direct materials : Determine the costs per equivalent unit of direct materials and conversion. If required, round your answer to two decimal places.

Determine the pump economic life : The pump's end-of-year salvage values over the next 5 years are $42K, $40K, $38K, $32K, and $26K. Determine the pump's economic life.

Firms can achieve overall-organization-wide competitive : Firms can achieve overall, organization-wide competitive advantage through the following strategies:

Determine the marginal cost to extend service : Determine the marginal cost to extend service for each of the next 4 years if the MARR is 8%. (Answer: MC1 = $4050)

Determine the marginal cost to extend service : Determine the marginal cost to extend service for each of the next 6 years if the MARR is 12%. If a new drill press has an EAC of $7000, when should the drill p

Cost of beginning work in process inventory : Cost of beginning work in process inventory completed in September. Costs per equivalent unit of direct materials and conversion.

Explain three elements of cultural web : Explain three elements of cultural web and how they relates to above story.

Automated conveyor system : Eight years ago, the ABC Block Company installed an automated conveyor system for $38,000. When the conveyor is replaced, the net cost of removal

How much interest expense is recognized on the debt : Using the effective interest method, how much interest expense is recognized on the debt for the year ending 12/31/14?

User Account

All Pages