User Account

All Pages

Equivalent annual cost-automated manufacturers

Assignment Help Finance Basics
Reference no: EM132535455

Automated Manufacturers uses a high-tech equipment to produce specialized aluminum products for its customers. This machine costs $1,480,000 to purchase plus an additional $49,000 a year to operate. The machine has a 6-year life after which it is worthless. The tax rate is 20%. What is the equivalent annual cost of one these machines if the required return is 16 percent?

Reference no: EM132535455

Questions Cloud

Find the risk-free rate for a firm with a required : 1. Find the risk-free rate for a firm with a required return of 15% and a beta of 1.25 when the market return is 14%.
What is the effective annual interest rate : Suppose you go to a bank for a one year loan to pay taxes. The bank staff offers you one year loan with 5% annual rate, flat basis and monthly repayment.
Describe the recent social technology : Name and describe in detail a key specific and recent social technology. What are at least two key moral problems this technology creates?
Additional deposits into the account : At what rate can the foundation afford to increase payments assuming that it makes no additional deposits into the account?
Equivalent annual cost-automated manufacturers : Automated Manufacturers uses a high-tech equipment to produce specialized aluminum products for its customers.
Cultural intelligence and diversity assessment : Cultural Intelligence and Diversity Assessment - Reflections that apply the Emotional Intelligence, Cultural Intelligence and Diversity theories and concepts
What are the underlying conditions of the employer-employee : What are the underlying conditions of the employer-employee relationship that make it a challenge for organizations to respect the humanity of persons
Choosing venture capital firms : Briefly discuss the strategies that Chaldal should use while choosing Venture Capital firms. Provide a detailed explanation.
Describe two control techniques to prevent fraud scheme : Leon Jones worked in the warehouse of a large building supply company. Describe two control techniques to prevent or detect this fraud scheme

Reviews

Write a Review

Finance Basics Questions & Answers

  Describe the method of least squares

Describe the method of least squares. Why is this method better than either the high-low method or the scattergraph method?

  Recognize revenue in conjunction

Do you believe these companies should be allowed to recognize revenue in conjunction with the advertising agreements described above?

  Discuss about the holding period return in given case

You purchased 100 shares of General Motors stock at a price of $93.9? one year ago. You sold all stocks today for $99.21.

  Why a company would enter into an interest rate swap

The following excerpt was taken from the annual report of Bristol-Myers Squibb, a leader in pharmaceutical and health care products.

  Explain how financial forecasting is essential

Explain how financial forecasting is essential to the strategic growth of a firm.

  What is the probability that you randomly select

What is the probability that you randomly select a kid who plays a string or percussion instrument?

  Assumptions regarding the investment of cash flows

Please help me explain the different assumptions regarding the investment of cash flows under NPV and IRR. Which assumption is more realistic?

  The nutrex corporation wants to calculate its weighted

the nutrex corporation wants to calculate its weighted average cost of capital. its target capital structure weights

  Cash dividends or stock dividends

The board of directors of Akin & Gump, Inc., investment bankers is meeting to address the concerns of stockholders. How is preferred stock similar to common stock? How is preferred stock similar to debit?

  What is meant by a utility function

What is meant by a utility function? If two assets' returns are positively correlated, what is the covariance between the returns of these two assets? What is the relation between the correlation between and among assets and diversification?

  What is the forward price that goldman should quote

Goldman Sachs receives an order from a client to buy this bond forward in one month's time. What is the forward price that Goldman should quote

  Payback period using payback method for capital budgeting

If the discounted rate is 10% and we have cash flows of -20 today, 15 in year 1, and 10 in year 2, then the payback period using the payback method for capital budgeting is?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd