X company is considering replacing one of its machines in

Assignment Help Accounting Basics

Reference no: EM13579248

X Company is considering replacing one of its machines in order to save operating costs. Operating costs with the current machine are $64,000 per year; operating costs with the new machine are expected to be $50,000 per year. The new machine will cost $70,000 and will last for 5 years, at which time it can be sold for $1,500. The current machine will also last for 5 more years but will have zero salvage value. Its current disposal value is $8,000. Assuming a discount rate of 6%, what is the difference between the net present value if X Company replaces the current machine and the net present value if it keeps the current machine?

Reference no: EM13579248

Questions Cloud

Identify and compute the costs to assign to the units sold : using the following data each expert team must collaborate to develop a presentation that illustrates the relevant

A poll of 1200 randomly selected students was conducted : a poll of 1200 randomly selected students was conducted and found 58 favor decriminalizing all drug use that is

X company is considering producing and selling a new : x company is considering producing and selling a new product with a useful life of 6 years. production of the product

X company produces and sells 61900 units of its regular : x company produces and sells 61900 units of its regular product each year for 14.00 each. the following cost

X company is considering replacing one of its machines in : x company is considering replacing one of its machines in order to save operating costs. operating costs with the

The heights of 18-year-old men are approximately normally : the heights of 18-year-old men are approximately normally distributed with mean 68 inches and standard deviation 3

Give an example of how to use a t-test to analyze the data : the t-test is a frequently used statistical procedure that compares the means of two groups.there are two versions of

The inn has 50 rooms that it rents at 50 a night operating : the green acres inn is trying to determine its break-even point. the inn has 50 rooms that it rents at 50 a night.

A 12 lbm bowling ball 859 inches in diameter is given a : a 12 lbm bowling ball 8.59 inches in diameter is given a spin of 1.0 revolution per second while traveling down the

User Account

All Pages