What is the equivalent annual cost of one machine

Assignment Help Financial Management

Reference no: EM131958219

Jackson amp; Sons uses packing machines to prepare its products for shipping. One machine costs $178,000 and lasts about 5 years before it needs replaced.

The operating cost per machine is $16,000 a year. What is the equivalent annual cost of one machine if the required rate of return is 12 percent?

Reference no: EM131958219

Questions Cloud

Find the interest owed : The balance of principal at the end of the firs! year is $50, 055 27 The ARM includes a periodic rate cap of 2% per adjustment period.

Should you replace your current machine : A company first purchased a CNC machine for $100K and has used it for 3 years. It's economic life then was estimated at 6 years with a residual value of $10K.

Challenges for top management in implementing the vision : Explain the challenges for top management in implementing the vision, mission, and guiding principles.

What is jakes weighted average cost of capital : The bonds are selling at 99% of face value. The company's tax rate is 34%. What is Jake's weighted average cost of capital?

What is the equivalent annual cost of one machine : The operating cost per machine is $16,000 a year. What is the equivalent annual cost of one machine if the required rate of return is 12 percent?

Calculate the expected return of the security : A company is evaluating a security as a standalone investment. The risk-free rate of return is 5.1% per annum. The probability distribution of annual returns.

Describe possible changes that might occur : Using an example, describe possible changes that might occur if project progress is not planned.

What is jacobs present equivalent cost of leasing : At that time Jacob plans to replace the truck irrespective of whether it leases or buys. Jacob has a marginal tax rate of 40% and a MARR of 15%.

Describe strategies to protect the information : Identify three threats to critical information and describe strategies to protect the information.

User Account

All Pages