The payback period should be five years or less use the

Reference no: EM13387384

Eco Wet, Inc., a manufacturer of gears for lawn sprinklers, is thinking about adding a new fully automated machine. This machine can produce gears that the company now produces on its third shift. The machine has an estimated useful life of ten years and will cost $500,000. The residual value of the new machine is $50,000. Gross cash revenue from the machine will be about $420,000 per year, and related operating expenses, including depreciation, should total $400,000. Depreciation is estimated to be $80,000 annually. The payback period should be five years or less. Use the payback period method to determine whether the company should invest in the new machine. Show the computations that support your answer.

Reference no: EM13387384

Questions Cloud

Briefly describe jit inventory management describe one 1 : 1. briefly describe jit inventory management.2. describe one 1 type of cost that is minimized with jit control.3. in

What tensions exist between protection of the publics : for this assignment you are being asked to consider ethical issues in public health and health services. using course

Describe an incremental cash flow for a project describe : 1. describe an incremental cash flow for a project. describe three 3 concepts we need to examine to help understand

Please give a 1-page reflection paper on why you feel : please give a 1-page reflection paper on why you feel integrity is an important value for a manager to have. give an

The payback period should be five years or less use the : eco wet inc. a manufacturer of gears for lawn sprinklers is thinking about adding a new fully automated machine. this

Compute price elasticity of demand for newtons donuts and : the demand function for newtons donuts has been estimated as followsqx -14 - 54px 45py 0.62axwhere qx represents

Research and state pert cpm and gantt relative to the : scheduling is essential to a projects success. forming a network activity with a visual depiction helps the team

List the acceptable capital investment proposals in the : emerald bay furniture companys managers have gathered all of the capital investment proposals for the year and they

Compute the total expected utility from each restaurant : patricia is researching venues for a restaurant business. she is evaluating three major attributes that she considers

User Account

All Pages