User Account

All Pages

Should xu keep or replace its manufacturing machine

Assignment Help Accounting Basics
Reference no: EM131539977

Question: Xu Company is considering replacing one of its manufacturing machines. The machine has a book value of $45,000 and a remaining useful life of 4 years, at which time its salvage value will be zero. It has a current market value of $55,000. Variable manufacturing costs are $34,000 per year for this machine. Information on two alternative replacement machines follows. Should Xu keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xu purchase?

                                                                            Alternative A                 Alternative B

Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $115,000                        $125,000

Variable manufacturing costs per year. . . . . . . . . . . . . . 22,000                             12,000

Reference no: EM131539977

Questions Cloud

What are some potential problems : What are some benefits? If the "red state/blue state" classification is not useful, what is a better way of explaining variation across states
Should the company continue to manufacture the part : Santos Company currently manufactures one of its crucial parts at a cost of $3.40 per unit. This cost is based on a normal production rate of 50,000 units.
Should the company sell the units as scrap or rework them : A company must decide between scrapping or reworking units that do not pass inspection. The company has 15,000 defective units that cost $6 per unit.
Discussion on the state of the macroeconomy : Thinking back to the discussion on the state of the macroeconomy, would you describe the economy as booming, recovering, or in recession during the last
Should xu keep or replace its manufacturing machine : Xu Company is considering replacing one of its manufacturing machines. The machine has a book value of $45,000 and a remaining useful life of 4 years.
Discussion on the state of the macroeconomy : Thinking back to the discussion on the state of the macroeconomy, would you describe the economy as booming, recovering, or in recession during the last few.
Summarize the case and your research : How could the hospital in this example have prepared its supervisors to understand their proper role during an organizing campaign?
Why developing nations in the global south are alarmed : you may want to examine some of the reasons why developing nations in the "global south" are alarmed by the prospect of such intervention
Discus the direct materials and labor costs per unit : Feist Co. expects to sell 200,000 units of its product in the next period with the following results.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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