Evaluating two different machines

Assignment Help Financial Management
Reference no: EM13768147

You are evaluating two different machines. Machine A costs $25,000, has a five-year life, and has an annual OCF (after tax) of -$6,000 per year. Machine B costs $30,000, has a seven-year life, and has an annual OCF (after tax) of -$5,500 per year. If your discount rate is 10 percent, using EAC which machine would you choose?

Reference no: EM13768147

Questions Cloud

Risk level equivalent to that of the overall market : Your portfolio has a beta of 1.24. The portfolio consists of 13 percent U.S. Treasury bills, 28 percent stocks A, and 59 percent stock B. Stock A has a risk level equivalent to that of the overall market. What is the beta of stock B? Provide detailed..
Discusses some facet of conflict diagnosis : Locate a peer reviewed article, newspaper, or on-line article that discusses some facet of conflict diagnosis based on your selected topic. Write a 1,050- to 1,400-word paper, which summarizes the item of conflict, and then discuss its significanc..
Develop a confidence interval for the mean : Choo Choo Paper Company produces papers of various thicknesses. A random sample of 49 cuts had a mean thickness of 30.3 mils with a sample standard deviation of 4 mils. a) Develop a 99% confidence interval for the mean thickness of the population. b)..
What is the current value of one share of this stock : The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 19 percent a year for the next 4 years and then decreasing the growth rate to 3 percent per year. The company just paid its..
Evaluating two different machines : You are evaluating two different machines. Machine A costs $25,000, has a five-year life, and has an annual OCF (after tax) of -$6,000 per year. Machine B costs $30,000, has a seven-year life, and has an annual OCF (after tax) of -$5,500 per year. If..
Reduce the number of larcenies in a community : What can the police do to reduce the number of larcenies in a community? Does your community have an anti- shoplifting program
Preparing general journal adjusting entries : The interest accrued at 12/31 of this year on the note payable (current) of $65,000 at 12% needs to be accrued. You will need to calculate only one month's interest (previous months' interest have already been recorded). Interest will be paid next ye..
How many years is it until this bond matures : The Lo Sun Corporation offers a 6.0 percent bond with a current market price of $809.50. The yield to maturity is 8.24 percent. The face value is $1,000. Interest is paid semi-annually. How many years is it until this bond matures?
Reduce the number of larcenies in a community : What can the police do to reduce the number of larcenies in a community? Does your community have an anti- shoplifting program

Reviews

Write a Review

Financial Management Questions & Answers

  Please show formulasa balance sheet shows a total of

please show formulas.a balance sheet shows a total of noncallable 45 million. long-termdebt with a coupon rate of 7.00

  Should they still comply with record keeping standards

If a company isn't public - or better said is a small, private company - should they still comply with record keeping standards? Why?

  C-v-p analysis of the current years financials

Conduct a What-If Analysis: This what-if analysis concerns an unforeseen circumstance that could impact the company''s current health as well as its future plans.

  Bank account opening

You have been accepted into college. The college guarantees that your tuition will not increase for the four years you attend college. The first 11,900 tuition payment is due in six months. After that, the same payment is due every six months until y..

  What is the value of the bake shoppes net fixed assets

The Bake Shoppe has net working capital of $6,100, long-term debt of $10,400, total debt of $15,200, and owners' equity of $18,900. What is the value of The Bake Shoppe's net fixed assets?

  What is conundrums expected current share price

Conundrum Mining is expected to generate $12 million, $18 million, $22 million and $26 million in free cash flows over the next four years, after which they are expected to grow at a rate of 5% per year. If the weighted average cost of capital is 12%..

  Primary goal of corporate financial management is maximize

The primary goal of corporate financial management is to maximize the:

  Q1 veezee vz issues a 2-year floating rate bond in the

q1. veezee vz issues a 2-year floating rate bond in the amount of 100m on which it pays libor6 - 0.5 semi-annually.

  Calculate the 2014 curent and quick ratios

Calculate the 2014 curent and quick ratios based on the projected balance sheet and income statement data. What can you say about the company's liquidity position in 2013

  What was the funds return and what was investors return

The Global Growth Fund is a load fund with a 6 percent front load fee. It started the year with a Net Asset Value (NAV) of $16.50. During the year the fund distributed $1.05, and at the end of the year its NAV was $17.95. What was the fund's return, ..

  Treasury bond-what is the equilibrium rate of return

The real risk-free rate is 3.05%, inflation is expected to be 2.60% this year, and the maturity risk premium is zero. Ignoring any cross-product terms, what is the equilibrium rate of return on a 1-year Treasury bond?

  Annual return mean-standard deviation-deviations of assets

DW Co. stock has an annual return mean and standard deviation of 12 percent and 33 percent, respectively. What is the smallest expected loss in the coming year with a probability of 5 percent? A stock has an annual return of 11.8 percent and a standa..

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