Salvage values and lost productivity

Assignment Help Business Economics
Reference no: EM131809900

Should New Tech's computer system be replaced this year? The system has a salvage value now of $5000, which will fall to $4000 by the end of the year. The cost of lower productivity linked to the older computer is $3000 this year. New Tech uses an interest rate of 15%. What is the cost advantage of the best system? A potential new system costs $12,000 and has the following salvage values and lost productivity for each year:

853_salvage values and lost productivity.png

Reference no: EM131809900

Questions Cloud

What will be the value of the shares distributed as dividend : How many shares will the company distribute as a stock dividend? What will be the value of the shares distributed as a dividend?
Total weight of the extra inventory : ABC Inc. has outsourced the task of holding its excess inventory to XYZ Inc. XYZ charges ABC based on the total weight of the extra inventory.
Annual maintenance costs : The annual maintenance costs for the leased cabs are $750 per year. Should the cabs be replaced if the interest rate is 10%?
Determine the number of units in work in process inventory : Determine the equivalent units of production for direct materials and conversion costs in May. If an amount is zero, enter in "0".
Salvage values and lost productivity : A potential new system costs $12,000 and has the following salvage values and lost productivity for each year:
Change if energy costs double : How much does the answer for Example 10.8 change if energy costs double? (Answer: Optimal thickness is 11 inches)
Prepare a contribution format income statement for quarter : The Alpine House, Inc., is a large retailer of winter sports equipment. Prepare a contribution format income statement for the quarter
What is the machine book value : What is the machine's book value after 5 years of depreciation? If the machine is sold for $20,000 early in Year 7, how much gain on sale or recaptured
Did the conversion cost per equivalent unit increase : Assuming that the direct materials cost is the same for April and May, did the conversion cost per equivalent unit increase, decrease, or remain the same in May

Reviews

Write a Review

Business Economics Questions & Answers

  Supply and demand diagram to explain the increase

Brazil is the world's largest coffee producer. There was a severe drought in Brazil in 2013-2014 that damaged Brazil's coffee crop. The price of coffee beans doubled during the first three months of 2014. Draw and discuss a supply and demand diagram ..

  What was zach accounting profit for the year

a. What was Zach's accounting profit for the year? b. What was Zach's economic profit for the year? c. Should Zack continue with his cookie business?

  Price-taking firm''s production function

If a price-taking firm's production function is given by q = 2vL, what is the profit function in the short-run term? Plz, explain your answers detailly.

  Explain in a perfectly competitive market

Explain in a perfectly competitive market how a firm can make excess profit, incur loss and even shut down in the short run. (Draw graphs also)

  Assembles electric toasters using labor and robots

Consider a company that assembles electric toasters using labor and robots. Suppose that in 1950, robots were so crude that they were useless in the assembly of toasters, so that toasters had to be assembled entirely by hand. Now suppose that as a re..

  What should the role of international organizations be

Read Qureshi and Jalbani's (2014) article on globalization, its effects on certain economies, and the concept of "gloco-localization." In your opinion, what should the role of international organizations be in helping to shape the global economy? Do ..

  Best describes the concept of producer surplus

Which of the following statements best describes the concept of producer surplus?

  Financial writer andrew tobias described an incident

The financial writer Andrew Tobias described an incident that occurred when he was a student at the Harvard Business School

  Exchange rate system

What are the different arguments used by the US and Chinese governments about the renminbi's exchange rate? Do you think that the renminbi is overvalued against the U.S. dollar? After the July 2005 reform, what was China's exchange rate system?

  Despite continued rapid growth

The airline industry, despite continued rapid growth, has been only marginally profitable over the last 50 years. What characteristics of the industry result in the lack of satisfactory profits?

  Determine the after-tax rate of return for this investment

A company is considering the installation of a new machine that costs $150,000. The machine is expected to lead to new net income of $40,000 per year for the next five years. Using SL depreciation, $0 salvage value, and an effective income tax rate o..

  Which of the congressmen views better fits the model

A tax cut has just been announced. Congressman Growth states that its effect will be on the supply side, Congress Stable states that its effect will be on the demand side. Demonstrate graphically the effect of the tax cut on the price level and outpu..

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