How to justify the purchase of the new machines

Reference no: EM13246524

Your company is considering the purchase of new earth movingequipment. The total purchase is $240,000 and we pay with $100,000 cash and borrow therest. (12% per year nominal, compounded monthly for 5 years). The machines last for 7years and will be worth $35,000 at the end of 7 years. The machines will save approximately $20 per ton of dirt moved. Operating costs for the equipment are $500 per month.At the end of year 3, you will have to do an over haul and that costs $30,000. Assume thatMARR is 1.5% per month and ignore the effect of taxes and depreciation.

Set up the equation and solve for the break even monthly tons of dirt moved to justify the purchase of the new machines

Reference no: EM13246524

Questions Cloud

What is the maximum amount of money the bank scan create : Assume that there are no excess reserves inthe banking system and the reserve ratio is 40 percent. John Smith finds $10,000 incash under his mattress, stashed there by his great aunt who didn't believe in banks

Why do carboxylic acids compounds higher boiling points : Why do carboxylic acids (-COOH) compounds have higher boiling points than simple alkanes of the same molecular weight

Write an expression for the differential element : A point charge is a = 1.5 m below the end of a continuously charged rod with charge Q = 5 ?C, Write an expression for the differential element of the y component of the Electric Field at P in terms of the charge density

Find out if damjibhai can win : Once a jewel type is removed from the necklace, all other instances of the same jewel type is treated as polished by the person who removed the jewel

How to justify the purchase of the new machines : Your company is considering the purchase of new earth movingequipment. The total purchase is $240,000 and we pay with $100,000 cash and borrow therest. (12% per year nominal, compounded monthly for 5 years).

Define the ph of the solution after the addition of hcl : A buffer is perpared by adding 0.100 moles of sodium acetate to 0.100 moles of acetic acid and diluting to 1.00L. What is the pH of the solution after the addition of 5.00mL of 1.00 molar HCl

Write an equation for the radial electric field : A hollow non-conducting spherical shell has inner radius R1 = 8 cm and outer radius R2 = 15 cm. a) Write an equation for the radial electric field in the region r

Significance of european maritime exploration : My assignment is to write a 18 page paper discussing the significance of European maritime exploration and expansion, the Enlightenment, the Industrial Revolution and Nationalism in shaping the modern world.

Real life experiences : Why do you think most of the Mongolian laws made by Genghis Khan were based on his real life experiences? For example, "he forbade the kidnapping of women, almost certainly a reaction to the kidnapping of his wife Borte"

User Account

All Pages