User Account

All Pages

Should company replace its? year-old machine

Assignment Help Cost Accounting
Reference no: EM132765005

Question - One year ago, a company purchased a machine used in manufacturing for $100k. A new machine is avaliable and you can purchase it for $150k today. The CCA rate applicable to both machines is 20%? and neither machine will have any? long-term salvage value. You expect that the new machine will produce earnings before? interest, taxes,? depreciation, and amortization? (EBITDA) of $45k per year for the next 10 years. The current machine is expected to produce EBITDA of $23k per year. All other expenses of the two machines are identical. The market value today of the current machine is $50k and company's tax rate is 45%?, and the opportunity cost of capital for this type of equipment is 12%. Should company replace its? year-old machine?

Reference no: EM132765005

Questions Cloud

Intrinsic and extrinsic motivation of the employees : Discuss how HRM best practices can enhance the intrinsic and extrinsic motivation of the employees?
Explaining to staff significant of stocking : Explaining to your staff significant of stocking, placing timely orders, and provide a step by step method on what to do in order to avoid type of situation
How might such defenses affect the firm agency problems : How might such defenses affect the firm's agency problems? Are managers of firms with formidable takeover defenses more or less likely to act in the shareholder
What does the capm allow to calculate : What does the CAPM allow you to calculate? Does it imply that a stock with a beta of zero will offer a zero-expected rate of return? If so, why?
Should company replace its? year-old machine : The opportunity cost of capital for this type of equipment is 12%. Should company replace its? year-old machine
What is meant by the term dividend payout ratio : Explain the terms Merger, Acquisition, and Takeover. In which ways might merger activities create wealth? What is meant by the term dividend payout ratio?
How can personal religious or spiritual values play : How is information about personal values used in career counseling? Is it important? Why or why not? How can personal religious or spiritual values play.
Explain job that require professional accountant to complete : Explain a job that requires a professional accountant to complete. State a few of the job responsibilities that would be required to complete the job
Are leaders born or made : Top-level managers have a greater need for interpersonal and decision-making skills than technical skills.

Reviews

Write a Review

Cost Accounting Questions & Answers

  Irmas interiors uses a job order costing system to collect

irmas interiors uses a job order costing system to collect the costs of its interior decorating business. each clients

  Question related to starbucksare starbucks mission vision

question related to starbucksare starbucks mission vision goals objectives aligned with its strategies? in other words

  Find what was the labor efficiency variance for the month

What was the labor efficiency variance for the month? Standard direct labor wage rate: $14.50 per hour. Standard direct labor-hours: 6 hours per unit

  How are manufacturing costs classified

How are manufacturing costs classified? Mel Finney claims that the distinction between direct and indirect materials is based entirely on physical association with the product. Is Mel correct? Why?

  How much is the total labor cost should be charged to direct

What amount of overhead was for second and third shift premiums? How much is the total labor cost should be charged to direct labor?

  Demonstrate what is the unit cost per equivalent unit

Demonstrate What is the unit cost per equivalent unit of the beginning inventory in the Finishing? Department? Dessa? Cabinetry, Inc. manufactures standard size

  What will be recommendation and why

If you are an advisor, what will be your recommendation? Why?

  Calculate the breakeven point and show in the graph

Calculate the breakeven point and show in the graph clearly the sales: Total revenue line, Total cost. Extradint Company sells its single product

  Find a journal article online about standard costing

Find a journal article online about standard costing. In the subject line of your post, include the title of the article that you read.

  Compute the project profitability index

Compute the project profitability index for each proposal and rank the proposals in terms of preference.

  How much did promenade pay for its investment in twilight

Year ended December 31, 2020 and paid dividends amounting to P960,000 during 2020. How much did Promenade pay for its investment in Twilight?

  Calculate the total cost for each product

BSP 320: COST AND MANAGEMENT ACCOUNTING Calculate the total cost for each product if all overhead costs are absorbed on a machine hour basis and calculate the total cost for each product using activity based costing.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd