subject
Business, 09.04.2021 01:00 chrismeldajbaptiste

iRobot Company 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 14 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 $487,000, annual operating costs of $29,000, and a 6-year life. Machine B costs $315,000, has annual operating costs of $51,200, and a 4-year life. The firm currently pays no taxes. Which machine should be purchased and why

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 20:30
Afactory owner wants his workers to produce as many widgets as they can so he pays his workers based on how many widgets they produce. however, in order to make sure that the workers do not rush and produce a large number of poorly made widgets, he checks the widgets at random at various stages of their manufacture. if a defect is found in a widget, the pay of the entire section of the factory responsible for that defect is docked. how is this factory owner seeking to solve the agency conflict problem in this case?
Answers: 2
question
Business, 22.06.2019 00:20
Suppose an economy consists of three sectors: energy (e), manufacturing (m), and agriculture (a). sector e sells 70% of its output to m and 30% to a. sector m sells 30% of its output to e, 50% to a, and retains the rest. sector a sells 15% of its output to e, 30% to m, and retains the rest.
Answers: 1
question
Business, 22.06.2019 07:30
Jewelry manufacturers produce a range of products such as rings, necklaces, bracelets, and brooches. what fundamental economic question are they addressing by offering this range of items?
Answers: 3
question
Business, 22.06.2019 19:10
Do it! review 16-3 the assembly department for right pens has the following production data for the current month. beginning work in process units transferred out ending work in process 0 22,500 16,000 materials are entered at the beginning of the process. the ending work in process units are 70% complete as to conversion costs. compute the equivalent units of production for (a) materials and (b) conversion costs. materials conversion costs the equivalent units of production
Answers: 2
You know the right answer?
iRobot Company is analyzing two machines to determine which one it should purchase. Whichever machin...
Questions