Management also considered but rejected the alternative of

Reference no: EM13585395

Management of Modugno Corporation is considering whether to purchase a new model 370 machine costing $525,000 or a new model 240 machine costing $423,000 to replace a machine that was purchased 8 years ago for $488,000. The old machine was used to make product M25A until it broke down last week. Unfortunately, the old machine cannot be repaired.

Management has decided to buy the new model 240 machine. It has less capacity than the new model 370 machine, but its capacity is sufficient to continue making product M25A.

Management also considered, but rejected, the alternative of simply dropping product M25A. If that were done, instead of investing $423,000 in the new machine, the money could be invested in a project that would return a total of $450,000.

In making the decision to invest in the model 240 machine, the opportunity cost was?

Reference no: EM13585395

Questions Cloud

Distinguish how this attraction utilizes the : for a tourism destination to be successful it must have something that attracts tourists to the area. for this

For the activity level of 3000 units compute a the total : corio corporation reports that at an activity level of 2900 units its total variable cost is 139722 and its total fixed

Descriptioni have had difficulty finding a value for the : descriptioni have had difficulty finding a value for the membrane potential of the sarcoplasmic reticulum sr. lets use

Suppose two dice are rolled assume that each possible : suppose two dice are rolled. assume that each possible outcome has probability 136. let a be the event that the sum of

Management also considered but rejected the alternative of : management of modugno corporation is considering whether to purchase a new model 370 machine costing 525000 or a new

The lifetime of zzz batteries is normally distributed with : the lifetime of zzz batteries is normally distributed with a mean of 270 hours and a standard deviation of 10 hours.

Scratch miniature golf and driving range inc was opened on : scratch miniature golf and driving range inc. was opened on march 1 by scott verplank. the following selected events

On computer perform a web search for nutrition-related : nutrition information critiquedirectionswrite an essay critiquing information from nutrition-related websites.on

A population has u100 and sigma20 if you select a single : a population has u100 and sigma20. if you select a single score from this populaton on the average how close woud it be

User Account

All Pages