subject
Business, 30.12.2019 23:31 jeremiah52

Although the chen company’s milling machine is old, it is still in relatively good working order and would last for another 10 years. it is inefficient compared to modern standards, though, and so the company is considering replacing it. the new milling machine, at a cost of $110,000 delivered and installed, would also last for 10 years and would produce after-tax cash flows (labor savings and depreciation tax savings) of $19,000 per year. it would have zero salvage value at the end of its life. the firm’s wacc is 10%, and its marginal tax rate is 35%. should chen buy the new machine?

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 13:10
The textbook defines ethics as “the principles of conduct governing an individual or a group,” and specifically as the standards one uses to decide what their conduct should be. to what extent do you believe that what happened at bp (british petrolium) is as much a breakdown in the company’s ethical systems as it is in its safety systems, and how would you defend your conclusion?
Answers: 2
question
Business, 23.06.2019 02:10
Goldman services hired a new clerk to keep custody of and maintain all the equipment in the equipment yard. the clerk has not yet been adequately trained on the maintenance needs of the equipment. which internal control procedure needs strengthening?
Answers: 2
question
Business, 23.06.2019 04:20
What common business mistake can cost you everything
Answers: 1
question
Business, 24.06.2019 10:30
Suppose you currently live and work in cleveland, earning a salary of $70,000 per year and spending $10,000 for housing. you just heard that you will be transferred to a city in california where housing is 60 percent more expensive. in negotiating a new salary, your objective is to keep your real income constant.
Answers: 1
You know the right answer?
Although the chen company’s milling machine is old, it is still in relatively good working order and...
Questions