Student name bravo baking co is considering replacing an

Reference no: EM13603897

Student Name Bravo Baking Co is considering replacing an older freezer with a larger unit to freeze some of its bread. The new unit has a larger capacity and Bravo estimates it can produce and sell an more bread each year. From these additional sales the after tax cash flow is expected to be $4,000. In addition to more sales, the new freezer will save $1,200 in electricity each year. However, the new freezer will cost an additional $2,000 each year for maintenance. The cost of the new unit is $25,000 and it is expected to last 10 years. The salvage value at the end of its life is $6,000. The old unit is fully depreciated and can be disposed at cost. Determine the Net Present Value of purchasing the new freezer using a required rate of return of 14%. Should Bravo purchase the freezer?

Reference no: EM13603897

Questions Cloud

A 53 kg sprinter starting from rest runs 55 m in 76 s at : a 53 kg sprinter starting from rest runs 55 m in 7.6 s at constant acceleration. what is the magnitude of the

Pritchard company manufactures a product that has a : pritchard company manufactures a product that has a variable cost of 30 per unit. fixed costs total 2000000 allocated

During the month bravo sold 9000 loaves of bread and used : bravo baking uses standard costing to analyze its performance. the data below is provided for your use in determining

Under a tensile stress of 890 mpa the atomic separation : in the absence of stress the center-to-center atomic separation distance of two al atoms is 0.286 nm. under a tensile

Student name bravo baking co is considering replacing an : student name bravo baking co is considering replacing an older freezer with a larger unit to freeze some of its bread.

Information pertaining to brenton corporations sales : information pertaining to brenton corporations sales revenue is presented in the following table february march april

Suppose this electron is moving in a circular orbit of : an interesting but oversimplified model of an atom pictures an electron in orbit around a proton. suppose this electron

Determine the entropy generation and the work transfer to : a closed rigid stationary and adiabatic pressure vessel initially contains two-phase h2o at a pressure of 175 kpa and a

Why do you think the sec requires that balance sheets : why do you think the sec requires that balance sheets provide two years of comparative financial information and income

User Account

All Pages