Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Replacement decision on Trade in using IRR technique
Your firm uses a manufacturing machine that was purchased 6 years ago. The machine's book value today is 0, and you assume it can work for 5 years more. The production cost with this machine is $6 per unit. Your supplier offered a new machine in a trade-in deal. The new machine's cost is $55,000, and the supplier is willing to purchase the old machine from you for $18,000. The production cost per unit in the new machine is $3.5, and the new machine has straight line depreciation for 5 years to zero terminal value. You have estimated that your firm will sell 6500 units per year, with a selling price of $17 each. The firm'a tax rate is 30% and its discount rate is 9%.
1.Should the firm do the trade-in deal? (i.e., should the old machine be replaced?)
2.Calculate the IRR of the trade-in. (i.e., compute the IRR of the relative cash flows)
3.Plot a graph showing the profitability of the investment depending on number of units sold.
Find out the present value of given each petuities. Each petuity with $1000 annual payment discounted.
Computation of value of the bond and Calculate for each bond the percentage price change associated with a change of yield to maturity
Is this project in division manager’s best interests? Explain why or why not? Carry out DuPont Analysis on this project. Determine the project’s residual income?
Computation of weighted cost of capital and Compute the weighted cost of capital that is appropriate to use In evaluating this expansion program
Assume that Go-med is a joint venture owned by Insure and four other venturers, that the acquisition differentials are valid, and that it has not yet adopted IFRS 11: Joint Arrangements. Prepare a 20X8 consolidated income statement for Insure using ..
Assess risks and opportunities in terms of economic. A analysis of the case study "AccuForm: Ethical leadership and its challenges in the era of globalization"
Case Study: The following capital structure is taken from Bata Boots Co. balance sheet for the fiscal year ended April 30, 2005. This is considered the firm’s optimal capital structure.
Analogies used to describe the theory of concepts and Cite the pages in the book where you found this analogy
Selecting an investment while you have your choice of the following real estate investments
If stock sells for $39 per share, Determine your best evaluate of company’s cost of equity? Answer in a %.
How much will Jane have in her retirement account immediately after she makes her last contribution in Year 40, assuming a return on her investments of 9%?
Deduce formula for weights of stocks A also B at which variance of portfolio P is minimal.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd