What is the equivalent annual cost of the raycool

Assignment Help Accounting Basics
Reference no: EM133071081

Question - A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,427.00 to install, $5, 140.00 to operate per year for 7 years at which time it will be sold for $7,059.00. The second, RayCool 8, costs $41,311.00 to install, $2,086.00 to operate per year for 5 years at which time it will be sold for $8,903.00. The firm's cost of capital is 6.63%. What is the equivalent annual cost of the RayCool8? Assume that there are no taxes.

Reference no: EM133071081

Questions Cloud

Compute basic and diluted earnings per share : Net income for the year was $150,000. The tax rate is 40%. Compute basic and diluted earnings per share for the year ended December 31, 20x1
D/617/2274 Advanced Systems Analysis and Design Assignment : D/617/2274 Advanced Systems Analysis and Design Assignment Help and Solution, OTHM Level 5 Diploma in Information Technology - Assessment Writing Service
What is the current value of these expected proceeds : You are offered a $6,000 check in four years and $6,000 a year for 5 additional years. What is the current value of these expected proceeds
Determine the number of shares outstanding : During the year, 559,765 additional shares were issued, and the number of treasury shares Increased by 3,044,188. Determine the number of shares outstanding
What is the equivalent annual cost of the raycool : The second, RayCool 8, costs $41,311.00 to install, $2,086.00 to operate per year for 5 years. What is the equivalent annual cost of the RayCool8
Discuss the impact of depreciation expense : Discuss the impact of depreciation expense on the cash flow analysis of a capital project. Also, discuss the types of leasing arrangements
What amount should the company report : Its cash-basis net income for the year is $70,000. What amount should the company report as its accrual-based net income for the current year
Financial planning and strategic planning : How does financial planning and strategic planning influence health care organizations?
H/617/2275 Database Systems Assignment : H/617/2275 Database Systems Assignment Help and Solution, OTHM Level 5 Diploma in Information Technology - Assessment Writing Service

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.

  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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd