In a economic Replacement analysis , the first cost of defender(existing system) is always the value at which it is priced today , which is the amount it can be sold today. Therfoe the exicxtng machine can be sold today for $51649 . Hence the first cost of existing system should be $51649 .
Kindly provide feedback.
A material handling system was purchased 3 years ago for $120731. Two years ago it required...
show all steps for thump up
no excel
4. (20 points) A machine purchased 3 years ago for $140,000 is now too slow to satisfy demand. The machine can be upgraded now for $70,000 (and thus be able to satisfy demand) or be sold to a smaller company for $40,000. After upgrading, the existing machine will have an annual operating cost of $85,000 per year, and an estimated life of 3 years (after upgrading you will keep the machine for...
please show all steps for thump up
do not excel
4. (20 points) A machine purchased 3 years ago for $140,000 is now too slow to satisfy demand. The machine can be upgraded now for $70,000 (and thus be able to satisfy demand) or be sold to a smaller company for $40,000. After upgrading, the existing machine will have an annual operating cost of $85,000 per year, and an estimated life of 3 years after upgrading you will keep the...
A machine purchased 3 years ago for $140,000 is now too slow to satisfy the demand of the customers. It can be upgraded now for $82,000 or sold to a smaller company internationally for $44,000. The upgraded machine will have an annual operating cost of $80,000 per year and a $30,000 salvage value in 3 years. If upgraded, the presently owned machine will be retained for only 3 more years, then replaced with a machine to be used in the...
A machine now in use was purchased four years ago at a cost of $29,000. It has a book value of $8,893. It can be sold for $10,000, but it could be used for three more years, at the end of which time, it would have no salvage value. What is the current amount of economic depreciation for this asset? The amount of economic depreciation is $ (Round to the nearest dollar.)
Two years ago the Krusty Krab Restaurant purchased a grill for $50,000. The owner, Eugene Krabs, has learned that a new grill is available that will cook Krabby Patties twice as fast as the existing grill. This new grill can be purchased for $100,000 and would be depreciated straight line over 8 years, after which it would have no salvage value. Eugene Krab expects that the new grill will produce EBITDA of $50,000 per year for the next eight years...
Farris Industrial purchased a machine five years ago at a cost of $164,900. The machine is being depreciated using the straight-line method over eight years. The tax rate is 21 percent and the discount rate is 14 percent. If the machine is sold today for $42,500, what will the aftertax salvage value be? A. $31,794.72 B. $49,268.13 C. $38,439.13 D. $46,560.88 Kustom Cars purchased a fixed asset two years ago for $39,000 and sold it today for $19,000. The assets...
11. Two years ago the Krusty Krab Restaurant purchased a grill for $50,000. The owner, Eugene Krabs, has learned that a new grill is available that will cook Krabby Patties twice as fast as the existing grill. This new grill can be purchased for $80,000 and would be depreciated straight line over 8 years, after which it would have no salvage value. Eugene Krab expects that the new grill will produce EBITDA of $50,000 per year for the next eight...
Dallas Engineering purchased a machine five years ago at a cost of $484,000. The machine is being depreciated using the straight-line method over eight years. The tax rate is 25 percent and the discount rate is 13 percent. If the machine is sold today for $209,000, what will the aftertax salvage value be? $202,125 $227,485 $214,500 $194,000 $186,775
New microelectronics testing equipment was purchased 2 years ago by Mytesmall Industries at a cost of $600,000. At that time, it was expected to be used for 5 years and then traded or sold for its salvage value of $75,000. Expanded business in newly developed international markets is forcing the decision to trade now for a new unit at a cost of $800,000. The current equipment could be retained, if necessary, for another 2 years, at which time it would...
BW Construction Materials purchased a machine six years ago at a cost of $810,000. The machine is being depreciated using the straight-line method over ten years. The tax rate is 25 percent and the discount rate is 10 percent. If the machine is sold today for $375,000, what will the aftertax salvage value be? $350,040 $321,460 $384,500 $362,250 $294,570