Homework Answers
| Annual operating cost | 23800 | |||
| Multiply: Annuity PVF at 11% for 7 yrs | 4.7122 | |||
| Present value of annual operating cost | 112150.4 | |||
| Add: Initial investment | 189000 | |||
| Total cost | 301150.4 | |||
| Divide: Annuity PVF | 4.7122 | |||
| EAC | 63908.65 | |||
| Answer is A. $ 63908.69 | ||||
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18. Country Breads uses specialized ovens to bake its bread. One oven costs $189,000 and lasts...
Champion Bakers uses specialized ovens to bake its bread. One oven costs $840,000 and lasts about...
Champion Bakers uses specialized ovens to bake its bread. One oven costs $840,000 and lasts about 3 years before it needs to be replaced. The annual operating cost per oven is $10,000. What is the equivalent annual cost of an oven if the required rate of return is 11 percent? (Round your answer to whole dollars) $-359,381 $-348,281 $-864,437 $-353,739
Champion Bakers uses specialized ovens to bake its bread One oven costs $860,000 and lasts about...
Champion Bakers uses specialized ovens to bake its bread One oven costs $860,000 and lasts about 3 years before it needs to be replaced The annual operating cost per oven is $11,000 What is the equivalent annual cost of an oven if the required rate of return is 9 percent? (Round your answer to whole dollars) $-356,474 $-344,484 O $-352,48 O $ 328,388 $350,747 Network 3 items DK
Champion Bakers uses specialized ovens to bake its bread. One oven costs $870,000 (in Year O)and...
Champion Bakers uses specialized ovens to bake its bread. One oven costs $870,000 (in Year O)and lasts 3 years before it needs to be replaced. The annual operating cost per oven (Years 1 through 3) is $9,000. What is the equivalent annual cost of an oven if the appropriate discount rate is 10 percent? (Round your final answer to the nearest dollar) Ο $-363,721 Ο $-360,431 Ο $-353,821 Ο $-358,840 Ο $-340,511
Jackson & Sons uses packing machines to prepare its products for shipping. One machine costs $397,500...
Jackson & Sons uses packing machines to prepare its products for shipping. One machine costs $397,500 and lasts 5 years before it needs replaced. The machine will be worthless after the 5 years. The annual aftertax operating cost per machine is $38,400. What is the equivalent annual cost of one machine if the required rate of return is 16 percent? Please show the steps so that I can learn from what I am doing wrong. Thanks!
Assume a machine costs $598,000 and lasts eight years before it is replaced. The operating cost...
Assume a machine costs $598,000 and lasts eight years before it is replaced. The operating cost is $119,600 a year. Ignore taxes. What is the equivalent annual cost if the required rate of return is 13 percent? (Hint: the EAC should account for both initial investment and annual operating costs) $225,814.72 $236,071.33 $244,215.26 $257,310.05 $268,799.94
Assume a machine costs $804,000 and lasts five years before it is replaced. The operating cost...
Assume a machine costs $804,000 and lasts five years before it is replaced. The operating cost is $57,000 a year. Ignore taxes. What is the equivalent annual cost if the required rate of return is 12 percent? (Hint: the EAC should account for both initial investment and annual operating costs) $246,718.72 $253,410.82 $261,533.99 $271,435.64 $280,037.42
Show all work. Highlight final answer. DO NOT answer questions if you cannot answer them all....
Show all work. Highlight final answer. DO NOT answer
questions if you cannot answer them all.
15. Automated Manufacturers uses high-tech equipment to produce specialized aluminum products for its customers. Each one of these machines costs $1,480,000 to purchase plus an additional $52,000 a year to operate. The machines have a 6-year life after which they are worthless. What is the equivalent annual cost of one these machines if the required return is 16 percent? (a) -S453,657 (b) -$427,109 (c)...
18) Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs t...
18) Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: 18) Activity Cost Pool Setting up batches Processing customer orders Assembling products Activity Rate 59.96 per batch $ S 73.20 per customer order S 4.65 per assembly hour Data concerning two products appear below: Product Product K91B F650 Number of batches Number of customer orders 97 68 47 61 Number of assembly hours 501 908 How much overhead cost would be assigned...
QUESTION 8 Concord Corporation is analyzing two machines to determine which one it should purchase. Whichever...
QUESTION 8 Concord Corporation is analyzing two machines to determine which one it should purchase. Whichever machine is purchased will be replaced at the end of its useful life. The company requires a 10 percent rate of return and uses straight-line depreciation to a zero book value over the life of the machine. Machine A has a cost of $272,000, annual operating costs of $14,000, and a 3-year life. Machine B costs $194,000, has annual operating costs of $19,000, and...
CCC Conglomerates is analyzing two machines to determine which one it should purchase. Whichever machine is...
CCC Conglomerates is analyzing two machines to determine which one it should purchase. Whichever machine is purchased will be replaced at the end of its useful life. The company requires a 12 percent rate of return and uses straight-line depreciation to a zero book value over the life of the machine. Machine A has a cost of $378,000, annual operating costs of $22,000, and a 3-year life. Machine B costs $257,000, has annual operating costs of $43,000, and a 2-year...
Champion Bakers uses specialized ovens to bake its bread One oven costs $860,000 and lasts about 3 years before it needs to be replaced The annual operating cost per oven is $11,000 What is the equivalent annual cost of an oven if the required rate of return is 9 percent? (Round your answer to whole dollars) $-356,474 $-344,484 O $-352,48 O $ 328,388 $350,747 Network 3 items DK
Champion Bakers uses specialized ovens to bake its bread. One oven costs $870,000 (in Year O)and lasts 3 years before it needs to be replaced. The annual operating cost per oven (Years 1 through 3) is $9,000. What is the equivalent annual cost of an oven if the appropriate discount rate is 10 percent? (Round your final answer to the nearest dollar) Ο $-363,721 Ο $-360,431 Ο $-353,821 Ο $-358,840 Ο $-340,511
Show all work. Highlight final answer. DO NOT answer
questions if you cannot answer them all.
15. Automated Manufacturers uses high-tech equipment to produce specialized aluminum products for its customers. Each one of these machines costs $1,480,000 to purchase plus an additional $52,000 a year to operate. The machines have a 6-year life after which they are worthless. What is the equivalent annual cost of one these machines if the required return is 16 percent? (a) -S453,657 (b) -$427,109 (c)...
18) Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: 18) Activity Cost Pool Setting up batches Processing customer orders Assembling products Activity Rate 59.96 per batch $ S 73.20 per customer order S 4.65 per assembly hour Data concerning two products appear below: Product Product K91B F650 Number of batches Number of customer orders 97 68 47 61 Number of assembly hours 501 908 How much overhead cost would be assigned...
QUESTION 8 Concord Corporation is analyzing two machines to determine which one it should purchase. Whichever machine is purchased will be replaced at the end of its useful life. The company requires a 10 percent rate of return and uses straight-line depreciation to a zero book value over the life of the machine. Machine A has a cost of $272,000, annual operating costs of $14,000, and a 3-year life. Machine B costs $194,000, has annual operating costs of $19,000, and...
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