The total increase or decrease in net income

Reference no: EM131022238

32] Granfield Company has a piece of manufacturing equipment with a book value of $37,000 and a remaining useful life of four years. At the end of the four years the equipment will have a zero salvage value. The market value of the equipment is currently $21,400. Granfield can purchase a new machine for $114,000 and receive $21,400 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $18,400 per year over the four-year life of the new machine. The total increase or decrease in net income by replacing the current machine with the new machine (ignoring the time value of money) is:

$19,000 increase
$73,600 decrease
$15,600 decrease
$49,900 increase
$19,000 decrease

Reference no: EM131022238

Questions Cloud

Alfarsi industries uses the net present value method : Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments.

Where do the two fields aid : Draw a diagram showing two conductors conneting a battery to a load resistance through a closed switch. Show the magnetic field of the current in the negative side of the line and in the positive side.

Find any values outside the range and remove them : Obviously, this data is useless, now you'll need to fix it. Find any values outside this range, remove them, and plot the data again. Be sure to include appropriate labels.

Draw diagrams representing the bond market : Draw diagrams representing the bond market and the loanable funds market in equilibrium. On your diagram, explain what would happen to the price of bonds, the interest rate, the quantity of bonds and the quantity of loanable funds in a business cy..

The total increase or decrease in net income : The total increase or decrease in net income by replacing the current machine with the new machine (ignoring the time value of money) is:$19,000 increase$73,600 decrease$15,600 decrease$49,900 increase$19,000 decrease

Which periods did they do a poor job : Plot both series on the same graph. During which periods did consumers do a good job of forecasting the inflation rate? During which periods did they do a poor job? Do consumers' expectations of the inflation rate tend to be more volatile or less ..

What were the topic or research questions being investigated : How does this article fit in with your paper? How did it influence your own ideas about your paper?Based on your reading of the literature, what do you expect to find?

If bluebird accepts this additional business : Which includes $2.50 variable cost and $1.75 fixed cost. If Bluebird accepts this additional business, the effect on net income will be:$52,500 increase.$15,000 increase.$37,500 increase.$11,250 decrease.$37,500 decrease.

What does lucas mean by - the monetary theory we have : Robert Lucas said: "In practice, it is much more painful to put a modern economy through a deflation than the monetary theory we have would lead us to expect. I take this to mean that we have ‘price stickiness.' " What does Lucas mean by "the mone..

User Account

All Pages