Solution-Determining the annual equivalent cost

Determining the annual equivalent cost

Reference no: EM131941110

"You plan to operate the same type of machine for 15 years. Machine A lasts 3 years and Machine B lasts 5 years. Machine A costs $7,000 and Machine B costs $9,000. The salvage value of Machine A is $2,000 and the salvage value of Machine B is $1,200. Annual operation and maintenance costs are $4,000 for Machine A and $4,300 for Machine B. Both machines can be purchased in the future at the same price as today, and their salvage values and annual costs will remain as they are now. Your MARR is 10.8%. Enter the Annual Equivalent Cost (AEC) as a POSITIVE number for the machine that should be selected."

Reference no: EM131941110

Questions Cloud

List four skus that were purchased most frequently together : List the three SKUs that were purchased most frequently together. List the four SKUs that were purchased most frequently together.

Define what clarification do you need regarding the posting : What additional questions do you have after reading the posting? What clarification do you need regarding the posting?

What is operating cash flow : If there is $226 in depreciation expense and the tax rate is 23.4%, what is operating cash flow? Round to the nearest penny.

How much value does depreciation add to the firm : If the tax rate is 27% and the discount rate is 10.4%, how much value does depreciation add to the firm? Calculate your answer to the nearest penny.

Determining the annual equivalent cost : Your MARR is 10.8%. Enter the Annual Equivalent Cost (AEC) as a POSITIVE number for the machine that should be selected."

What do you understand by cryptography? : What do you understand by Cryptography? Compare the two basic types of cryptography. Explain at-least 2 flaws in your own words. Chapter 10.

Discuss an intended strategy and a realized strategy : Is it necessary that the ve steps in the strategic management process be performed sequentially? Why or why not?

Npw of the preferred option : On the basis of the NPW criterion, which alternative should be selected? Enter the NPW of the preferred option.

What is the net present worth : If the machine lasts indefinitely under these conditions, what is the net present worth (NPW) of the machine at an interest rate of 13.9%?

User Account

All Pages

Determining the annual equivalent cost

Reference no: EM131941110

Reference no: EM131941110

Questions Cloud

Reviews

Write a Review

Chemistry Questions & Answers

Steps in the mechanism for the following reaction

Prior to placing piece of metal into the graduated cylinder

Write the structures of the saytzeff elimination

Calculate ph - chemistry questions

How many mols of hydrogen can produce

Analysis of corrosion mechanisms

Chemical and pharmaceutical science

Calculate the approximate sulphur

What is the structure - stereochemistry

Design a qualitative analysis scheme

What will be the resultant pressure

The 1h nmr spectrum

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT