User Account

All Pages

What is the annual worth of the two machines

Assignment Help Accounting Basics
Reference no: EM132775030

Problem 1: An engineer uses an economic analysis to determine which of two different machines to purchase. All the machines that are being considered are capable of performing the same task. Assume that the minimun atractive rate of return is 12% compounded monthly, what is the annual worth (EAW) of the two machines? which is the best economic investment?

Machine X
Initial cost $8,000
Estimated life 3yr
Salvage value $1,000
Monthly mant cost $1,500
Monthly incomes $3,550

Machine Y
Initial cost $11,000
Estimated life 3yr
Salvage value $1,500
Monthly mant cost $1,475
Monthly incomes $3,475

  1. EAWx = $1784.76, EAWy = $1646.83, x is the best investment
  2. EAWx =$1784.76, EWAy = $1646.83, y is the best investment
  3. EAWx =$807.53, EWAy = $669.51, x is the best investment
  4. EAWx =$669.51, EAWy = $807.53, y is the best investment

Reference no: EM132775030

Questions Cloud

Explain rationale for using the recruitment method : Select 8 recruitment methods and decide the following for each, and present the material in a Microsoft Word table: Legal/Employment Law Considerations.
What is the process to correct errors : How would you find errors in recording transactions and what is the process to correct errors? Provide an example. How is trial balance used to discover error
What difference ordinary income vs statutory income pursuant : What is the difference between ordinary income and statutory income pursuant to the ITAA97 and ITAA36? Explain your answer in detail
How your company can potentially benefit from the art event : Your workplace has a line in its budget for team building events outside of work. In the past, your supervisor has passed out free tickets to minor league.
What is the annual worth of the two machines : Assume that the minimun atractive rate of return is 12% compounded monthly, what is the annual worth (EAW) of the two machines?
What other external resources will you use to offset budget : Your workplace has built a parking deck. The ground level is unusable for cars due to clearance issues. The company you work for recently heard that it can.
What is headland current stock price : What is Headland's current stock price? Headland Tire's current dividend is $5.40. Dividends are expected to grow by 25 percent for years 1 to 3
Calculate waterway sustainable growth rate : Calculate Waterway's sustainable growth rate? Waterway Co. just paid a dividend of $2.50 per share and its EPS is $5.00. Its book value per share (BVPS) is $55.
What is the price of a share of nash mechanical today : What is the price of a share of Nash Mechanical today? Nash Mechanical Inc.'s first dividend of $3.30 per share is expected to be paid six years from today.

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