What first cost should be assigned to the existing system

Assignment Help Business Economics

Reference no: EM13840231

A material handling system was purchased 3 years ago for $120,537. Two years ago it required substantial upgrading at a cost of $14,340. It once again is requiring an upgrading cost of $24,925. Alternately, a new system can be purchased today at a cost of $191,779, with a salvage value of $20,017. The existing machine could be sold today for $49,564. In an economic replacement analysis, what first cost should be assigned to the existing system?

Reference no: EM13840231

Questions Cloud

Annual compound interest : Suppose when you are 21 years old, you deposited $1000 into a bank account that pays annual compound interest, and you do not withdraw from the account until your retirement at the age 65, 44 years later. How much more will be in your account if the ..

Inflation rates-what are the ex-post real interest rates : Assume that the inflation rates in 2010, 2011, and 2012 were 1%, 2%, and 3% respectively. During the same periods, nominal interest rates were 5%, 5%, and 6%, respectively. What are the ex-post real interest rates in 2010, 2011, and 2012?

Profit-sharing royalty scheme with the stall holders : Crepe Creations is considering franchising its unique brand of crepes to stall-holders on Hermoza Beach, which is five miles long. How many franchises should CC award given that it determines the prices the stall holders can charge and that it will h..

Analyzing two-good production possibilities curve : The U.S. continues to experience a relatively high level of unemployment in its workforce. When analyzing a two-good production possibilities curve (PPC), where would you expect to find a point that reflects this unemployment?

What first cost should be assigned to the existing system : A material handling system was purchased 3 years ago for $120,537. Two years ago it required substantial upgrading at a cost of $14,340. It once again is requiring an upgrading cost of $24,925. Alternately, a new system can be purchased today at a co..

A history of the kings of kashmir : Who wrote the Rajatarangini, a history of the kings of Kashmir

Shami dynasty in the indian subcontinent : Who was the founder of the Shami dynasty in the Indian Subcontinent?

Why is the unrestricted entry of new firms : Why is the unrestricted entry of new firms to all markets necessary to assure the efficient allocation of resources in the long run?

Inflation and quantity theory of money : Inflation and Quantity theory of Money. Adapted from Jones Q3 Ch 8: What is the key endogenous variable in the quantity theory? (Read chapter 8 if this isn't clear) Explain the effect on this key variable of the following changes (holding everything ..

User Account

All Pages