Should the firm assign to this equipment as an initial cost

Assignment Help Finance Basics

Reference no: EM13288377

Webster & Moore paid $139,000, in cash, for a piece of equipment 3 years ago. At the beginning of last year, the company spent $21,000 to update the equipment with the latest technology. The company no longer uses this equipment in its current operations and has received an offer of $89,000 from a firm that would like to purchase it. Webster & Moore is debating whether to sell the equipment or to expand its operations so that the equipment can be used. When evaluating the expansion option, what value, if any, should the firm assign to this equipment as an initial cost of the project?

Reference no: EM13288377

Questions Cloud

Explain similarities and differences between preferred stock : Preferred stock is said to be a hybrid security having similarities to both common stock and bonds. Explain the similarities and differences between preferred stock, bonds, and common stock.

What will be its per-share dividend in 2009 : The company had a 40% dividend payout ratio in 2008. If Bowles wants to maintain this payout ratio in 2009, what will be its per-share dividend in 2009?

How would your spin be affected and why : If you were standing on a spinning turntable holding barbells close to your chest, how would your spin be affected? Why?

Design circuit thatseparates two signals as well as possible : An ECG lead is oriented such that its electrodes are placed onthe body in positions that pick up an electromyogram from the chestmuscles as well as the electrocardiogram. Design a circuit thatseparates these two signals as well as possible

Should the firm assign to this equipment as an initial cost : When evaluating the expansion option, what value, if any, should the firm assign to this equipment as an initial cost of the project?

How fast is the runner traveling : On the planet Zardem, the standard unit of time is the Zarsec, or Zs, where 1 Zs = 2.2s. how fast is the runner traveling

Should the company accept the project : The Mitre Box Company is considering a project with an initial cost of $35,000 and future cash inflows of $20,000, $15,000, $10,000 and $5,000 over the next four years respectively.

By how much would earth''s mass increase in one day : At Earth location, the intensity of sunlight is 1.5 kW/m2. by how much would Earth's mass increase in 1 day

Determine the most cost-effective implementation of cables : determine the most cost-effective implementation by;selecting cables sizes and supply voltages and appropriate insulation. Assume copper wire is 3x as expensive as auminum wire and every AWG size increase corresponds to a 1.5x increase inwire pric..

User Account

All Pages