A new robot could be acquired for 60,000, and be kept for up to 4 years....
A new robot could be acquired for 60,000, and be kept for up to 4 years. Its annual expenses would be $6,000, $9,000, $14,000, and $20.000 in years 1 to 4 in the same order. The robot's market value would be $45,000, $33,750, $25,500 and $19,500 at the end of years 1 to 4 in the same order. Determine the economic life of the robot, assuming 10% cost of capital.
Homework Answers
Year 1:
=-60000-6000/1.1+45000/1.1=-24545.4545454546
Year 2:
=-60000-6000/1.1-9000/1.1^2+33750/1.1^2=-45000
Year 3:
=-60000-6000/1.1-9000/1.1^2-14000/1.1^3+25500/1.1^3=-64252.4417731029
Year 4:
=-60000-6000/1.1-9000/1.1^2-14000/1.1^3-20000/1.1^4+19500/1.1^4=-83752.4759237757
Economic life is 1 year
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A new robot could be acquired for 60,000, and be kept for up to 4 years....
Answer the question. A new robot could be acquired for $60,000, and be kept for up...
Answer the question. A new robot could be acquired for $60,000, and be kept for up to 4 years. Its annual expenses would be $6,00 $9,000, $14,000, and $20,000 in years 1 to 4 in the same order. The robot's market value would be 545,000 $33,750, $25,500, and $19,500 at the end of years 1 to 4 in the same order. Determine the economic life of the robot, assuming 10% cost of capital. 1 in F B I D E...
Answer the question. A new robot could be acquired for $60,000, and be kept for up...
Answer the question. A new robot could be acquired for $60,000, and be kept for up to 4 years. Its annual expenses would be $6,00 $9,000, $14,000, and $20,000 in years 1 to 4 in the same order. The robot's market value would be 545,000 $33,750, $25,500, and $19,500 at the end of years 1 to 4 in the same order. Determine the economic life of the robot, assuming 10% cost of capital. 1 in F B I D E...
An existing robot can be kept if 2,100 is spent now to upgrade it for future service requirements. Alternatively, the co...
An existing robot can be kept if 2,100 is spent now to
upgrade it for future service requirements. Alternatively, the
company can purchase a new robot to replace the old robot. the
following estimates have been developed for both the defender and
the challenger. The company's before tax MARR is 25% per year.
Based on this information, should the existing robot be replaced
right now? Assume the robot will be needed for an indefinite period
of time.
The AW value...
could someone explain me how they got 2 years and four month at the end? dont...
could someone explain me how they got 2 years and four
month at the end? dont know where they got it from. thanks
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managerial accounting Example Old New $390,000 Purchase Price Book value Current disposal value Salvage value Useful...
managerial accounting
Example Old New $390,000 Purchase Price Book value Current disposal value Salvage value Useful Life Depreciation Working capital $ 40,000 $ 6,500 S 0 5 years $ 8,000 $ 6,000 % 0 5 years $ 78,000 $15,000 Income tax rate -40% Required Rate of Return = 8% Before-tax operational cash savings: $120,000 in year 1 through 4 $105,000 in year 5 1. Initial Cash Flows Price of new machine $390,000 After-tax Cash Flow from Current Disposal of Old...
Answer the question. A new robot could be acquired for $60,000, and be kept for up to 4 years. Its annual expenses would be $6,00 $9,000, $14,000, and $20,000 in years 1 to 4 in the same order. The robot's market value would be 545,000 $33,750, $25,500, and $19,500 at the end of years 1 to 4 in the same order. Determine the economic life of the robot, assuming 10% cost of capital. 1 in F B I D E...
Answer the question. A new robot could be acquired for $60,000, and be kept for up to 4 years. Its annual expenses would be $6,00 $9,000, $14,000, and $20,000 in years 1 to 4 in the same order. The robot's market value would be 545,000 $33,750, $25,500, and $19,500 at the end of years 1 to 4 in the same order. Determine the economic life of the robot, assuming 10% cost of capital. 1 in F B I D E...
An existing robot can be kept if 2,100 is spent now to
upgrade it for future service requirements. Alternatively, the
company can purchase a new robot to replace the old robot. the
following estimates have been developed for both the defender and
the challenger. The company's before tax MARR is 25% per year.
Based on this information, should the existing robot be replaced
right now? Assume the robot will be needed for an indefinite period
of time.
The AW value...
could someone explain me how they got 2 years and four
month at the end? dont know where they got it from. thanks
is considering investing in one of the following indiv Example 18./ Wollensky Ltd is conside projects: Time (years) Project A Projects Project 0 Initial capital expenditure Expected annual 50,000 17,000 50,000 2,000 60,000 21,000 Remember that capital expenditures expenditure on fored profitilloss) 2,000 16,000 12,000 7,000 2,000 (18,000) 10,000 6,000 8,000 2,000 10,000 6,000 1,000 (4.000) 15,000...
Fix the red ones:
Diversified Products, Inc., has recently acquired a small publishing company that offers three books for sale-a cookbook, a travel guide, and a handy speller. Each book sells for $10. The publishing company's most recent monthly income statement is shown below. Total Company Cookbook $ 300,000 $90,000 Product Line Travel Handy Guide Speller $ 150,000 $ 60,000 Sales Expenses: Printing costs Advertising General sales Salaries Equipment depreciation Sales comissions General administration Warehouse rent Depreciation-office facilities Total expenses...
A piece of labor-saving equipment has just come onto the market that Mitsui Electronics, Ltd., could use to reduce costs in one of its plants in Japan. Relevant data relating to the equipment follow: $392,000 Purchase cost of the equipment Annual cost savings that will be provided by the equipment Life of the equipment $ 80,000 10 years Required: 1a. Compute the payback period for the equipment 1b. If the company requires a payback period of four years or less,...
managerial accounting
Example Old New $390,000 Purchase Price Book value Current disposal value Salvage value Useful Life Depreciation Working capital $ 40,000 $ 6,500 S 0 5 years $ 8,000 $ 6,000 % 0 5 years $ 78,000 $15,000 Income tax rate -40% Required Rate of Return = 8% Before-tax operational cash savings: $120,000 in year 1 through 4 $105,000 in year 5 1. Initial Cash Flows Price of new machine $390,000 After-tax Cash Flow from Current Disposal of Old...
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