Business, 21.06.2020 01:57 katherinevandehei

A new engineer is proposing that the old machine be replaced with a new one that costs $165,000. This new machine will last 5 years with 10% salvage. This new machine will require only one operator, and will operate on a productive basis 384 minutes per day. This new machine will operate faster, with a production rate of .3200 minutes per part. Maintenance costs for this machine are expected to be 0 the first year, $8,000 the second, and increase by 7% each year thereafter. Overhead rates, inflation rates, and tax rates are the same as in part one. Depreciation will be 7 year MACRS. Up to 25% of the money for this new machine could be borrowed. Management wants to know what the maximum interest rate on borrowed money that would make it worthwhile to borrow, and what is the best repayment plan. Management also wants to know if the maximum interest rate is a function of the repayment plan. Use IRR techniques to determine under what conditions this machine should be purchased

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 20:30

What do economists mean when they use the latin expression ceteris paribus?

Answers: 3

Answer

Business, 21.06.2019 21:00

Identifying transactions national park tours co. is a travel agency. the nine transactions recorded by national park tours during may 2019, its first month of operations, are indicated in the following t accounts: cash (1) 75,000 (2) 900 (7) 8,150 (3) 1,600 (4) 6,280 (6) 2,700 (9) 2,500 accounts receivable (5) 12,300 (7) 8,150 supplies (2) 900 (8) 660 equipment (3) 8,000 accounts payable (6) 2,700 (3) 6,400 beth worley, capital (1) 75,000 beth worley, drawing (9) 2,500 fees earned (5) 12,300 operating expenses (4) 6,280 (8) 660 indicate for each debit and each credit (a) whether an asset, liability, owner's equity, drawing, revenue, or expense account was affected and (b) whether the account was increased (+) or decreased account debited account credited transaction type effect type effect (1) (2) (3) (4) (5) (6) (7) (8) (9)

Answers: 3

Answer

Business, 22.06.2019 19:30

Alaska king crab fishing in the 1960s and '70s was a dangerous but rich fishery. boats from as far away as california and japan braved the treacherous gulf of alaska crossing to reach the abundant king crab beds in cook inlet and bristol bay. suddenly, in the early 1980s, the fishery crashed due to over fishing. all crabbing in those areas ended. to this day, there is no crabbing in bristol bay or cook inlet. a. how would an economist explain the decline of the alaska king crab fishery

Answers: 3

Answer

Business, 22.06.2019 20:10

While cell phones with holographic keyboards are currently in the introduction stage of the industry life cycle, tablet computers are in the growth stage. in the context of this scenario, which of the following statements is true? a. the industry for cell phones with holographic keyboards will face greater competition than the tablet industry. b. while the industry for cell phones with holographic keyboards will focus more on product innovation, the tablet industry will focus more on process innovation. c. while the industry for cell phones with holographic keyboards can reap the benefits of economies of scale, the tablet industry will experience no such benefits. d. the industry for cell phones with holographic keyboards will face price competition, whereas, in the tablet industry, the mode of competition will be non-price.

Answers: 2

Answer

You know the right answer?

A new engineer is proposing that the old machine be replaced with a new one that costs $165,000. Thi...

Questions